Wine - Nepal

The Wine market in Nepal has been steadily growing over the past few years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Nepal, there has been a growing interest in wine consumption among the younger population. This can be attributed to increasing exposure to international cuisines and a desire to explore new flavors. Additionally, there is a perception among consumers that wine is a healthier alternative to other alcoholic beverages. As a result, there has been a shift towards wine consumption, especially among urban dwellers.

Trends in the market: One of the key trends in the Nepalese wine market is the increasing demand for imported wines. Nepalese consumers are becoming more knowledgeable and discerning about wine, and they are willing to pay a premium for high-quality imported wines. This trend is driven by a desire for authenticity and a preference for wines from traditional wine-producing countries such as France, Italy, and Spain. Another trend in the market is the rise of domestic wine production. Nepal has a favorable climate and terrain for grape cultivation, and local wineries are capitalizing on this by producing their own wines. Domestic wines are gaining popularity among Nepalese consumers, who appreciate the unique flavors and characteristics of locally produced wines. This trend is also supported by government initiatives to promote the local wine industry.

Local special circumstances: Nepal has a unique cultural and religious landscape that influences the wine market. The country has a significant Hindu population, and alcohol consumption is generally frowned upon in Hindu culture. However, wine is seen as more socially acceptable compared to other alcoholic beverages, which has contributed to its growing popularity. Additionally, the tourism industry plays a significant role in the wine market, as tourists visiting Nepal often seek out local wines as part of their cultural experience.

Underlying macroeconomic factors: The growing wine market in Nepal can be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income. This has allowed consumers to spend more on luxury items such as wine. Additionally, urbanization and changing lifestyles have led to a shift in consumer preferences towards more sophisticated and premium products, including wine. In conclusion, the wine market in Nepal is experiencing steady growth due to changing customer preferences, increasing demand for imported wines, the rise of domestic wine production, local cultural and religious factors, and underlying macroeconomic factors such as economic growth and urbanization.

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.