At the China Development Forum 2026 annual meeting held from March 22nd to 23rd, Mark Schneider, CEO of Nestle S.A., delivered a speech.
Mr. Schneider stated that Nestle S.A. entered the Chinese market in the 1980s, making it one of the first multinational corporations to invest in China. Currently, nearly 90% of Nestle's procurement in China, covering raw materials, packaging, and services, is sourced locally. Furthermore, over 90% of the products sold in the Chinese market are manufactured domestically. "Nestle S.A. maintains a strong belief in the immense growth potential of China's economy. Our confidence in this vast and dynamic consumer market has never wavered," he mentioned. Since 2020, Nestle S.A. has invested over 5 billion RMB in China, primarily targeting high-potential premium categories such as pet food and infant nutrition. Looking ahead to the new wave of global consumption growth, Mr. Schneider highlighted three core forces reshaping the industry landscape: First, technological innovation, represented by artificial intelligence, is redefining how consumers discover, choose, and experience products. He noted that from highly personalized recommendations to real-time immersive digital interactions, AI is lowering barriers to consumer engagement. This helps companies provide more precise nutritional solutions, more convenient product formats, and brand experiences that better align with consumer needs. "The accelerated development of digitalization is comprehensively unlocking the vast potential of omnichannel retail." Second, the trend towards health and nutritional upgrading remains robust. Mr. Schneider indicated that consumers are increasingly prioritizing healthy, high-quality, and personalized products, whether in functional nutrition, coffee, or pet care. This shift reflects a deeper desire to enhance daily life quality and creates significant opportunities for science-based, high-quality products that cater to evolving lifestyles. Third, consumption is increasingly driven by emotional connection, self-expression, and personalized experiences. From the daily rituals associated with premium coffee to pet care and wellness routines, consumers seek products that reflect their values, aspirations, and identity. Brands capable of building emotional resonance and offering personalized value will lead the next wave of consumption growth. Mr. Schneider emphasized that the world is changing, and Nestle S.A. must change even faster. In China, this imperative for transformation is particularly pronounced, urgent, and exciting. The pace of digital application and consumption innovation in China drives Nestle S.A. to continuously improve and pursue excellence in the region. "China's latest Government Work Report prioritizes expanding domestic demand as the primary economic task for the year, presenting immense opportunities for companies like ours. As we enter the beginning of the '16th Five-Year Plan' period, we will continue to deepen our roots in this vibrant, rapidly developing market, committed to achieving long-term growth and contributing to China's high-quality development."
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