Nestlé will double its investment in Mexico to US2 billion by 2030, expanding production from coffee to pet food and strengthening local sourcing, including the incorporation of 2,000 coffee producers in Veracruz between 2028 and 2030. The commitment reinforces Mexico’s position as a key manufacturing and supply base for global food companies, amid record foreign direct investment of US34.968 billion in the first half of 2026, driven mainly by reinvested earnings. Coffee producers, soluble coffee processors and agrifood suppliers stand to benefit as large processors seek to secure domestic supply amid elevated international coffee prices.

On Wednesday, Oct. 7, Presindetn Claudia Sheinbaum met at the National Palace with company executives, including Philipp Navratil, Global CEO, Nestlé; Fausto Costa, Director, Nestlé México; and Jeff Hamilton, CEO for the Americas, Nestlé. The meeting was also attended by Marcelo Ebrard, Minister of Economy; Marath Bolaños, Minister of Labor and Social Welfare; Columba López, Minister of Agriculture and Rural Development; and Ximena Escobedo, Undersecretary of Industry and Trade.

During the meeting, the executives informed the president of their intention to expand operations in the country. With this new commitment, Nestlé’s announced investment during the current administration will rise from US$1 billion to US$2 billion by 2030. “They want to expand their investment. When I took office, they committed to an investment of US$1 billion. That investment has already been completed,” Sheinbaum said during her morning press conference.

In January 2025, Nestlé announced a US$1 billion investment for 2025-2027 to expand its production operations in the country. These actions include the modernization of the Purina Experience Center in Guanajuato and the expansion of production capacity at the NESCAFÉ factory in Veracruz.

In addition, in March, Nestlé announced a US$455 million investment in the State of Mexico. Of this amount, US$275 million will go toward modernizing and expanding its factories in Toluca and Cuautitlán, and US$180 million toward building a new distribution center in Zumpango, which will have capacity for nearly 90,000 pallet positions. The company has five production centers and three distribution centers in the state, employing more than 2,500 people.

Nestlé’s growth strategy, according to the company, which operates in 187 countries, includes greater support for Mexico’s agricultural sector and the strengthening of local value chains through the continuous sourcing of domestic raw materials and inputs.

“An example of this commitment to rural development is Plan NESCAFÉ, an initiative through which Nestlé will continue promoting sustainable and regenerative agricultural practices. To date, the program has trained more than 16,000 farmers, distributed more than 72 million seedlings, provided ongoing agronomic assistance to more than 2,000 producers and supported the transition to regenerative agriculture models,” said Costa.

As part of this new capital injection, the company will directly boost national production and local sourcing in the coffee sector during 2028-2030. This includes incorporating 2,000 producers in the state of Veracruz and distributing 70,000 coffee plants.

“This new stage reflects our confidence in the country’s potential and our conviction to continue growing with Mexico. We want to strengthen our production capacity, boost Mexico’s agricultural sector and continue creating opportunities through an increasingly solid, competitive and sustainable value chain. Because when Mexico grows, we all grow,” said Costa.

Coffee at the Center of the Strategy

Nestlé’s new investment stage focuses on a value chain in which Mexico carries significant weight. During the 2024/25 cycle, national coffee cherry production reached 1.08Mt, 1.9% more than the 1.06Mt of the previous period, according to the Agrifood and Fisheries Information Service (SIAP).

For the 2026/27 cycle, the US Department of Agriculture’s Foreign Agricultural Service (USDA) expects production to grow 1% to 4.14 million 60kg bags, of which 3.575 million would be arabica and 560,000 robusta.

The growth of robusta is relevant to Nestlé’s strategy. According to USDA, this variety is gaining ground due to its disease resistance, its adaptation to lower-altitude areas and demand from large soluble coffee processors, a segment that accounts for 60% of domestic consumption, compared with 40% for ground coffee.

Production is highly concentrated. Chiapas accounts for 36.5% of national coffee cherry production, Veracruz for 24.8% and Puebla for 21.1%; together, the three states represent more than 82% of output. Veracruz, where Nestlé plans to incorporate 2,000 producers and distribute 70,000 coffee plants between 2028 and 2030, is the country’s second-largest producer.

The domestic market also offers room for growth. USDA projects national consumption of about 3.15 million 60kg bags in the 2025/26 cycle, although per capita consumption remains between 1.3kg and 1.7kg per year, below the Latin American average.

At the same time, the sector relies heavily on foreign markets. About 85% of the coffee produced in Mexico is exported, and the United States accounts for about 68% of export volume, followed by Belgium with 13.6% and Germany with 7.8%, according to Trust Funds for Rural Development (FIRA) data based on UN Comtrade. In 2025, exports of unroasted coffee grew 91.8% year over year, according to INEGI.

Prices also remain a key factor for the industry. Although they have eased from their 2025 peaks, arabica coffee averaged US$3.3 per pound in March 2026, about 40% above its 10-year average, according to International Coffee Organization data cited by USDA. In this scenario, securing local supply has become a central part of large processors’ strategies.

Record Foreign Investment

Nestlé’s announcement comes amid record foreign investment. According to the Ministry of Economy, Mexico received US$34.9 billion in foreign direct investment (FDI) between January and June 2026, a record for a first half and 2.1% more than in the same period of 2025.

By type of investment, reinvested earnings were the main component, at US$30.9 billion, equivalent to 88.5% of the total. Expansions such as Nestlé’s fall into this category. The United States remained the main source of investment, with US$16.8 billion.