Food - Nepal

Nepal

Revenue in the Food market amounts to US$12.68bn in 2024. The market is expected to grow annually by 8.73% (CAGR 2024-2029).
The market's largest segment is the segment Meat with a market volume of US$3.05bn in 2024.
In global comparison, most revenue is generated in China (US$1,601bn in 2024).
In relation to total population figures, per person revenues of US$427.60 are generated in 2024.
In the Food market, 1.8% of total revenue will be generated through online sales by 2024.
In the Food market, volume is expected to amount to 4,512.00m kg by 2029. The Food market is expected to show a volume growth of 3.4% in 2025.
The average volume per person in the Food market is expected to amount to 133.20kg in 2024.

Key regions: United States, Canada, China, India, South Korea

Definition:

The food market covers all edible products that are bought and consumed for nutrient-based purposes. The market includes both fresh and processed foods.

Structure:

The market consists of 13 different markets:

The Dairy products & Eggs market covers animal products, such as milk, eggs and products made from mammal’s milk and non-animal products, such as milk substitutes. This market is divided into six subsegments that include milk, milk substitutes, yogurt, cheese, eggs and other dairy products and eggs.
The Meat market covers animal products, such as pork, poultry, and free-from meat products, such as meat substitutes. This market is divided into three submarkets: fresh meat, processed meat, and meat substitutes.
The Fish & Seafood market covers products made from fish and seafood. This market is divided into three submarkets: fresh fish, fresh seafood, and processed fish & seafood.
Fruits & Nuts cover edible fruits and nuts. This market is divided into three submarkets: fresh fruits, processed & frozen fruits, and nuts.
The Vegetables market covers edible plants. This market is divided into two submarkets: fresh vegetables, processed & frozen vegetables.
The Bread & Cereal products market covers baked goods made from dough. Dough is made using flour, water, a leavening agent, and other optional ingredients. This market also covers products made from cereals that are usually used as part of a main meal. This market is divided into five submarkets: bread, pasta, rice, breakfast cereals and other cereal products.
The Oils and Fats market covers both edible oils and fats made from animals and plants. This market is divided into four submarkets: butter, margarine, edible oils, and other oils & fats.
The Sauces and Spices market covers additional ingredients used during the food preparation process and is divided into three submarkets: tomato ketchup, other sauces, and spices & culinary herbs.
The Convenience food market covers prepared food and meals that require little effort to prepare. This market is divided into two subsegments, soups and ready-to-eat meals.
The Spreads and Sweeteners market covers spreads and ingredients added to food or beverages to give it a sweet flavor. This market is divided into two subsegments, spreads and sweeteners.
The Confectionery & Snacks market covers sweet, savory, and salty food. This market is divided into two subsegments, confectionery and snacks.
The Baby food market covers food that is only meant to be consumed by babies and small children.
The Pet food market covers food that is intended for pet use only.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), and sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included. The out-of-home revenue data is only shown as a separate box at the market level.

For more information on the displayed data, click the info button on the right side of each box.

Market

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Analyst Opinion

The Food market in Nepal has been experiencing slow growth due to various factors such as limited infrastructure, high levels of food insecurity, and a lack of consumer awareness about the benefits of certain food products. However, there is potential for growth in sub-markets such as dairy products and eggs, as well as convenience food, due to increasing urbanization and changing consumer preferences. Limited access to technology and transportation also impact the market's overall growth rate.

Customer preferences: The traditional Nepalese diet is heavily influenced by Hindu and Buddhist beliefs, with a focus on vegetarianism and the use of local, seasonal ingredients. However, with the rise of western influence and changing lifestyles, there has been a shift towards more diverse and international food options. This trend is particularly evident among urban, younger generations who are more open to trying new cuisines and experimenting with fusion dishes. As a result, there has been a growing demand for international restaurants and food delivery services, catering to a more diverse palate. This shift towards a more globalized food culture is also reflected in the increasing availability of imported and processed foods in the market.

Trends in the market: In Nepal, The Food market is experiencing a shift towards more sustainable and locally sourced food products. This trend is driven by a growing awareness of the environmental and health impacts of imported and processed foods. As a result, there has been a rise in demand for organic and traditional foods, such as millets and quinoa. This trajectory is significant for both industry stakeholders and consumers, as it promotes a more sustainable and healthy food system. However, it also presents challenges for food producers who may struggle to meet the increasing demand and adapt to new farming practices. Additionally, it could lead to potential implications for the international food market, as Nepal shifts away from importing certain products and focuses on promoting its own local food industry.

Local special circumstances: In Nepal, The Food market is heavily influenced by the country's diverse topography and cultural practices. Due to its mountainous terrain, transportation of food products can be challenging, resulting in a reliance on locally sourced and traditional foods. Additionally, the Nepalese culture places a strong emphasis on food as a means of social bonding and celebration, leading to a strong demand for fresh and high-quality ingredients. Furthermore, the Nepalese government has implemented strict regulations on food safety and hygiene, which have significantly impacted the market's supply chain and distribution channels. These unique factors contribute to the distinct dynamics of The Food market in Nepal.

Underlying macroeconomic factors: The Food market in Nepal is heavily influenced by macroeconomic factors such as the country's overall economic health, global economic trends, and fiscal policies. Nepal has been experiencing steady economic growth in recent years, which has led to an increase in consumer spending and a growing demand for food products. However, the country also faces challenges such as political instability and a lack of infrastructure, which can impact market performance. Additionally, Nepal's agricultural sector is a major contributor to its economy, making it vulnerable to natural disasters and fluctuations in global food prices. These factors must be considered when analyzing The Food market in Nepal and its potential for growth.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

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, and consumer price 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 Food 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. The market is updated twice a year.