As of October 21, the team at Nestlé began construction on the “House of Nescafé Thailand” in Samut Prakan province, according to a press release. By late 2028, the plant is set to start operations after the business’s investment of CHF 563 million (THB 23 billion or ~$684 million).
The site will make soluble coffee, coffee mixes, and ready-to-drink beverages. The coffee facility will also feature a Coffee Innovation Center and an automated distribution hub. Nestlé expects to create more than 500 jobs and source local coffee, sugar, and fresh milk worth roughly THB 4.3 billion (over CHF 100 million or ~$121 million) per year.
“This diverse portfolio of high-quality, affordable, and innovative coffee offerings will strengthen Nestlé’s ability to serve consumers across different coffee occasions, whether at home, on the go, or out of home,” read the release that called NESCAFÉ the most popular coffee brand in the country.
While the company plans to source from Thai farmers, the country does not produce enough coffee to meet the anticipated needs at the new facility.
“We source local coffee beans and also import from neighboring countries including Vietnam because domestic supply is not sufficient,” according to the Nestlé Media Relations Team in an email to Expana.
In 2025, Thai coffee output was 16,020 metric tons (MT), according to Thailand’s Office of Agricultural Economics. So, Nestlé officials buy local robusta but also import beans.
The plant is designed for 170,000 MT of annual production, per MT Newswires.
It remains unclear whether Thailand’s coffee output alone can fully support operations in the country. However, reliance on imports is unlikely to increase, as the Nestlé Thailand team is working to expand domestic coffee cultivation areas. Either way, Thailand-grown coffee has a new home.
When asked about El Niño uncertainty, Nestlé’s agronomists report higher temperatures and dry spells in southern Thailand this year. So far this year though, there have not been significant crop losses. Still, prolonged below-average rainfall may be the future risk as the El Niño pattern is expected to strengthen into early 2027. So, at this point, it is difficult to attribute price moves to El Niño alone, according to the Nestlé team in Thailand.
“Current assessments indicate that crop development has generally remained on track,” said the communications team to Expana. El Niño weather patterns “could affect soil moisture and water availability for future crop cycles. Our agronomists continue to monitor conditions closely and support farmers through climate adaptation measures, including improved soil health, water management, Agro-Forestry, and regenerative agriculture practices. Coffee prices are influenced by a range of factors, including weather, global supply and demand, inventories, logistics, and currency movements. While weather conditions are an important consideration, it is difficult to attribute price movements to El Niño alone at this stage.”
Image source: Nestlé Thailand
Written by Ryan Gallagher
