NEW DELHI : India could soon become one of Nestlé SA’s five largest markets globally, as strong consumer growth, higher investments and an expanding manufacturing and export base strengthen the country’s strategic importance for the Swiss food and beverage major.
Nestlé CEO Philipp Navratil, speaking during a media roundtable in India, said the country is already among the company’s top 10 markets by revenue contribution and was its best-performing market globally during the first half of 2026.
“Top five is definitely on the horizon,” Navratil said, indicating that the milestone could be reached in the near term rather than over several decades.
Growth Expected to Remain Above Global Average
Nestlé expects India’s growth to remain above the group’s average, with volume growth playing a key role.
Navratil said the company expects growth to be driven primarily by higher volumes and continued investment, reflecting the expanding consumer base and rising consumption potential in the country.
The stronger outlook is also influencing Nestlé’s global investment priorities.
“As India grows above the group average, the investment will also be above the group average in this country,” Navratil said, although he did not disclose a specific amount for additional investment.
Nestlé had previously announced a ₹5,000-crore investment programme for India in 2022.
Manufacturing Footprint Continues to Expand
Nestlé currently operates nine manufacturing facilities in India, with a 10th plant under development in Odisha.
The company’s growing manufacturing footprint reflects its confidence in India’s long-term demand potential.
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According to Navratil, India’s combination of population scale, urbanisation, an expanding consumer base and the growth of the middle class makes it particularly attractive for investment.
The company’s extensive distribution network is another advantage, allowing Nestlé to reach consumers across urban, semi-urban and rural markets.
India Emerging as an Export Hub
Nestlé’s strategy for India extends beyond serving the domestic market.
The company currently exports products manufactured in India to approximately 30 countries, but management sees considerable scope to increase both the number of export destinations and the volume of products shipped from the country.
Navratil said Nestlé wants to do more to establish India as a global production and export hub.
India’s large domestic market also provides an advantage in manufacturing economics. High domestic demand can enable new factories to reach efficient utilisation levels more quickly, potentially strengthening their role in both domestic supply and exports.
Strong First-Half Performance
Nestlé’s recent global results highlighted high double-digit growth in India during the June quarter, with the company describing the country’s performance as particularly strong.
India also helped drive growth in Nestlé’s Asia, Oceania and Africa zone.
The performance reinforces the country’s growing importance within the group’s international portfolio.
Premiumisation and Affordability to Work Together
Nestlé’s strategy in India is not focused exclusively on premium consumers.
Navratil said the company sees opportunities at both the value and premium ends of the market, with the objective of increasing consumption while expanding its portfolio across different price points.
This strategy combines:
Affordability + Premiumisation + Wider Consumer Reach + Portfolio Expansion
The company intends to increase its real internal growth (RIG) by reaching more households while offering products that address different income levels and consumption occasions.
Focus on Efficiency and Product Quality
Alongside market expansion, Nestlé is focusing on improving operational efficiency, portfolio management and organisational performance.
Navratil emphasised that the company would not pursue growth at the expense of product quality or consumer acceptance.
The India strategy is therefore being positioned as a long-term growth programme, rather than a short-term push for market share.
Why India Matters to Nestlé
India’s growing strategic importance reflects broader changes in the country’s food and consumer market.
Several structural factors are working together:
- Rising household incomes
- Rapid urbanisation
- Expansion of the middle class
- Increasing packaged-food consumption
- Wider modern retail and digital distribution
- Premiumisation alongside demand for affordable products
- Expanding manufacturing capacity
- Growing export potential
These trends are creating opportunities not only in traditional packaged foods but also across nutrition, beverages, convenience foods and other consumer categories.
The Bigger Picture
Nestlé’s plans highlight how India’s role in the global food industry is evolving from a large consumer market into a potential manufacturing and export base.
If India continues to grow faster than the Nestlé Group average, the country could move rapidly up the company’s global market ranking.
The combination of domestic scale and export potential also creates a compelling manufacturing proposition: factories can serve India’s huge consumer market while increasingly supplying international markets.
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