Summary
Nestle signaled on Tuesday that the company will consider lowering consumer coffee prices as coffee bean costs have fallen, but any retail price adjustments will depend on market conditions, stock levels and the prices Nestle paid for purchased coffee.
Axel Touzet, who leads Nestle’s coffee brands strategic business unit, made the remarks at the company’s Vevey headquarters. Touzet said the firm will factor the decline in green-bean prices into its pricing decisions, while stressing that adjustments will be market-specific.
"Lower coffee prices are a great thing for everyone, because it will lower the cost and, you know, may lower the price," Touzet said. "We will adapt, depending on the markets and the situation, but, yes, we will take into account the decline when we decide on our coffee prices."
Nestle, the world’s largest coffee company and owner of brands such as Nescafe and Nespresso, noted that consumer outcomes hinge not only on current bean-market levels but also on inventories and the purchase prices the company incurred for coffee supplies. Touzet linked consumer pricing decisions explicitly to those variables.
Coffee markets have seen notable volatility in recent years. According to company comments, coffee prices climbed sharply in 2024 and reached record highs in 2025 after adverse weather disrupted supplies. Over the course of the current year, bean prices have generally trended lower.
Industry estimates cited in the company’s remarks indicate there is a lag between movements in raw-bean prices and the prices paid by consumers. Experts place that transmission delay at a minimum of nine months, a timeframe driven in part by roasting lead times and the cadence of contract negotiations. As a result, prices charged by shops and cafes remain elevated in the aftermath of last year’s surge.
Those dynamics leave Nestle positioned to respond to the easing of bean prices, but the company also underscored the practical constraints - inventories and prior purchase costs - that influence whether and when consumers see lower prices at retail.
Key points
- Nestle will consider declining raw coffee bean costs when setting retail prices, with decisions depending on markets and situation.
- Consumer pricing will be affected by Nestle’s stock levels and the prices the company paid for purchased coffee.
- Industry estimates place a minimum nine-month lag between raw-bean price movements and consumer prices, affecting retail and foodservice sectors.
Risks and uncertainties
- Timing risk - the minimum nine-month transmission delay means consumers may not immediately benefit from lower bean costs, impacting cafes and retail pricing.
- Inventory and procurement risk - elevated stock levels or previously higher purchase prices could delay or limit retail price reductions, affecting retailers and consumer staples margins.
- Market dependency - any price adjustments will vary by market and situation, creating uncertainty for regional retailers and foodservice operators.