Nestle says falling coffee bean costs will be reflected when setting retail prices

Company signals it will factor lower raw-bean prices into consumer pricing, but timing depends on inventories and prior purchases

Nestle said it will consider the recent decline in coffee bean costs when deciding retail prices, offering a potential easing for consumers after steep increases in 2024 and record highs in 2025. The company warned that final consumer prices depend on stock levels and the prices it has already paid, and industry timing lags mean cafe and shop prices may remain elevated for some months.

Nestle says falling coffee bean costs will be reflected when setting retail prices

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Key Points

Nestle will consider lower coffee bean costs when setting retail prices, according to Axel Touzet at the company’s Vevey headquarters.
Actual consumer prices will depend on Nestle’s stock levels and the prices it paid for beans, so any retail price reductions may be delayed.
Coffee prices rose sharply in 2024 and hit record highs in 2025 due to adverse weather, but bean prices have generally trended lower this year; industry estimates place the pass-through lag at around nine months.

Nestle said on Tuesday that the company will factor falling coffee bean costs into decisions on retail pricing, a development that could eventually ease what have been higher prices for consumers in recent years.

Axel Touzet, who runs Nestle’s coffee brands strategic business unit, spoke at the company’s headquarters in Vevey and described lower bean costs as "a great thing for everyone, because it will lower the cost and, you know, may lower the price." He added that Nestle will "adapt, depending on the markets and the situation," and confirmed the company will take the recent decline in coffee-bean prices into account when it sets its coffee prices.

The remarks provide the clearest signal to date that the world’s largest coffee company is prepared to adjust its retail pricing after several years of steep increases. Coffee prices jumped sharply in 2024 and reached record levels in 2025 amid adverse weather that hit supplies, but bean prices have broadly moved lower during the current year.

Touzet emphasised that actual consumer prices will depend on Nestle’s inventories and the prices the company previously paid for beans. That means the pass-through of lower raw-material costs to shop and supermarket prices is not immediate.

Industry participants estimate it typically takes at least nine months for movements in raw bean prices to flow through to consumers, reflecting roasting lead times and the cadence of contract negotiations. Because of those lags, prices at cafes and other retail outlets remain elevated following last year’s surge.

Nestle owns global coffee brands such as Nescafe and Nespresso, and Touzet’s comments signal the company will monitor market conditions closely as it decides how and when to adjust prices in different markets.

Context and implications

Declining bean costs may lead to lower retail coffee prices, though timing will vary by market and depend on stock levels and contracted purchase prices.
Because of processing and contracting timelines, changes in raw-material costs typically take months to affect consumer prices.

Risks

Timing risk - Because of roasting lead times and contract negotiations, it can take at least nine months for changes in raw bean prices to reach consumer prices, so shops and cafes may remain exposed to elevated costs in the short term.
Inventory and procurement risk - Consumer price outcomes hinge on Nestle’s existing stock levels and the prices the company has already paid for coffee, which could delay or limit any reductions.
Market variation risk - Nestle will "adapt, depending on the markets and the situation," indicating that price adjustments may not be uniform across regions or retail channels.

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Nestle says falling coffee bean costs will be reflected when setting retail prices

Key Points

Risks

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