Beer - Nepal

The Beer market in Nepal has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Nepal has traditionally been a country with a strong preference for alcoholic beverages, and beer has gained popularity among consumers in recent years. One of the key reasons for this shift in preferences is the increasing urbanization and westernization of Nepalese society. As more people are exposed to international cultures and lifestyles, there is a growing demand for beer as a social and recreational beverage. Additionally, the younger generation in Nepal is more open to trying new products and experiences, which has further contributed to the rise in beer consumption.

Trends in the market: One of the major trends in the beer market in Nepal is the growing popularity of craft beer. Craft breweries have emerged in different parts of the country, offering a wide variety of unique and locally brewed beers. This trend is driven by the desire for high-quality and distinctive products among consumers. Craft beer appeals to those who are looking for a more personalized and flavorful drinking experience, and it has gained a loyal following among beer enthusiasts in Nepal. Another trend in the market is the increasing availability of imported beers. As Nepal opens up to global trade and tourism, there has been a rise in the importation of international beer brands. This trend is fueled by the desire for novelty and diversity among consumers, who are now able to enjoy a wide range of beers from different parts of the world. Imported beers are often seen as premium products and are favored by those who seek a taste of international flavors.

Local special circumstances: Nepal is a country with a unique geography and cultural heritage, which has influenced the development of the beer market. The mountainous terrain and challenging transportation infrastructure make it difficult to distribute beer across the country. As a result, there is a concentration of beer consumption in urban areas, where access to transportation and distribution networks is relatively easier. This has led to the growth of beer markets in cities like Kathmandu and Pokhara, while rural areas have limited access to beer products.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Nepal have also contributed to the development of the beer market. As the country's economy continues to expand, more people have the means to afford beer as a leisure product. Additionally, the growing tourism industry in Nepal has created a demand for beer among both domestic and international tourists. The influx of tourists has not only increased the overall market size but also introduced new beer brands and flavors to the Nepalese market. In conclusion, the Beer market in Nepal is experiencing growth due to changing customer preferences, emerging trends such as craft beer and imported brands, local special circumstances like concentration of consumption in urban areas, and underlying macroeconomic factors such as economic growth and tourism. The future of the beer market in Nepal looks promising, with opportunities for both domestic and international beer brands to cater to the evolving tastes and preferences of Nepalese consumers.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.