Nestlé is investing CHF 563 million (US$ 688 million) in a new Nescafé production facility and distribution center in Thailand. The move will strengthen Southeast Asia’s coffee manufacturing capacity as demand for soluble coffee, coffee mixes and ready-to-eat (RTD) beverages increases across domestic and export markets.
The greenfield facility, located in Samut Prakan province, is scheduled to begin operations in the second half of 2028. Nescafé produces soluble coffee, coffee mixes and RTD coffee drinks. On-site distribution centers are designed to reduce delivery times, improve inventory management, and increase supply chain agility.
The facility will be based at Araya Industrial Park and will have an annual production capacity of 170,000 tonnes, according to the Thailand Board of Investment (BOI). According to the BOI, the project is expected to create more than 520 jobs for Thai engineers and technical professionals.
Automation and aroma recovery
Nestlé said the factory will be equipped with advanced technology, automation and AI-enabled systems to support quality, efficiency and sustainability. It includes new coffee extraction and aroma recovery technology designed to preserve the aroma released during roasting and provide a fresher coffee experience. Robotics and automation systems are also used for packaging, transportation, and inventory management.
This investment highlights the growing role of digitalization in F&B manufacturing, particularly in the bulk beverage category, where manufacturers are looking to build resilience, reduce operational waste, and respond more quickly to changing local consumption patterns.
Coffee as a strategic growth platform
Nestlé describes Thailand as a dynamic coffee market worth approximately CHF1 billion (approximately US$1.24 billion) and one of the largest coffee markets in the world. Remy Edger, Nestlé’s vice president and CEO for Asia, Oceania and Africa, said coffee is Nestlé’s largest global business and this investment will increase Nescafé’s production capacity in Southeast Asia.
The BOI points out that Nescafé has led Thailand’s coffee market for more than 50 years, accounting for more than half of the market share. The agency said the project would make Thailand a strategic production and logistics hub in Southeast Asia.
Local sourcing and supporting farmers
The factory will support Thai farmers and suppliers through the use of local ingredients and raw materials worth more than CHF 100 million (US$ 124 million) annually. The BOI has separately set an annual local procurement value of US$130 million, or 4.3 billion baht, for all agricultural inputs and raw materials.
The company says the new location builds on more than 40 years of support to Thai coffee farmers, including the supply of coffee seedlings and programs focused on regenerative agriculture and climate resilience.
Nestlé will also work on upstream agricultural development, including researching climate-resilient coffee varieties, distributing high-quality seedlings, and training farmers on sustainable, high-yield cultivation methods, BOI said.
Consistency with Thailand’s BCG agenda
The project has investment support from the BOI and is in line with Thailand’s bio-circular green economy agenda. The BOI says the use of AI-driven systems and robotic automation is aimed at maximizing operational efficiency while minimizing the facility’s environmental footprint.
Thailand BOI Director-General Narit Tersterasukdi said the investment will strengthen Thailand’s coffee value chain “from cultivation and processing to logistics and export” and support the country’s strategy to become a major food and beverage production base.
