U.S. consumers are growing increasingly uneasy amid signs of a broader economic slowdown, according to Nestlé CEO Laurent Freixe. In his recent remarks, Freixe addressed how shifting market conditions, including consumer sentiment and macroeconomic pressures, are affecting buying habits and overall industry performance in the United States.
Freixe pointed to the lingering effects of tariffs implemented under the Trump administration, which have reintroduced cost pressures and uncertainty for both producers and consumers. Although some of these tariffs remain under review, their cumulative impact has complicated supply chains and increased expenses across sectors, particularly in the food and beverage industry.
Despite the unfavorable environment, Nestlé has posted strong results in the U.S. market. Freixe credited the company’s performance to its consumer-centric strategies and resilience in supply management. Rather than passing increased costs directly onto consumers, Nestlé has absorbed some of the inflationary pressures internally—a move aimed at maintaining competitive pricing and customer loyalty.
Nestlé’s ability to sustain growth amid economic headwinds is also linked to its local production model. Approximately 90% of Nestlé’s products sold in the U.S. are manufactured domestically. This approach has buffered the company from the full brunt of international trade disruptions and allowed it to stay responsive to U.S. market dynamics without the delays or expenses associated with global imports.
The company’s recovery in U.S. market share is seen as a result of both operational efficiency and product appeal. Nestlé has focused heavily on revitalizing its key brands and improving customer engagement. Investments in innovation and advertising have positioned Nestlé’s offerings as reliable choices for cost-conscious consumers who are seeking both value and quality during uncertain times.
On the strategic front, Freixe clarified the company’s intentions for its water business, which has attracted considerable market speculation. While Nestlé is not looking to sell the entire unit, it is exploring the sale of a stake in its water division. This move would allow the company to unlock capital for future expansion initiatives, particularly in areas that align with its long-term growth strategy, without compromising its core operations.
The water division includes globally recognized brands like Perrier, S.Pellegrino, and Pure Life. As of January 2025, this division was restructured into an independent unit—a move designed to give it greater strategic flexibility and the capacity to pursue growth through partnerships or joint ventures. The restructuring reflects Nestlé’s broader “fewer, bigger, better” corporate strategy under Freixe’s leadership.
Since assuming the CEO role in September 2024, Freixe has prioritized sharpening the company’s focus on high-performing assets. His leadership has emphasized brand strength, cost discipline, and marketing effectiveness, aimed at reinforcing Nestlé’s competitive edge while navigating evolving market challenges.
Nestlé’s U.S. strategy also reflects broader concerns about consumer spending trends. Surveys have indicated a rise in cautious spending, with households cutting back on non-essential purchases in response to rising living costs and lingering concerns about the labor market and inflation. This cautious climate has prompted companies across industries to reevaluate pricing strategies and supply chain models.
Nonetheless, Nestlé’s outlook remains optimistic. The company continues to innovate within categories such as plant-based products, health and wellness, and convenience foods—sectors that are gaining traction among consumers seeking healthier, more sustainable options. These investments are intended to align with emerging consumer priorities while sustaining long-term value creation.
With ongoing volatility in the global economy, Nestlé’s performance in the U.S. may serve as a model for balancing profitability with consumer sensitivity. The company’s localized production, brand consolidation, and cautious expansion strategy are being watched closely by analysts and industry peers alike.
