Non-Alcoholic Drinks - Nepal

The Non-Alcoholic Drinks market in Nepal has seen significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Nepal, there has been a shift in customer preferences towards healthier and more natural beverage options. Consumers are increasingly seeking non-alcoholic drinks that are low in sugar and artificial additives, and instead, are opting for beverages that are made from natural ingredients and offer functional benefits. This trend is driven by a growing awareness of the importance of maintaining a healthy lifestyle and the desire to make better dietary choices. As a result, there has been an increased demand for non-alcoholic drinks such as herbal teas, fruit juices, and infused water.

Trends in the market: One of the prominent trends in the Non-Alcoholic Drinks market in Nepal is the rise of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These beverages often contain added vitamins, minerals, or other ingredients that are believed to provide specific health benefits. In Nepal, there has been a growing demand for functional beverages such as energy drinks, sports drinks, and beverages with added probiotics. This trend is driven by the desire for convenience and the need for products that can support an active and healthy lifestyle. Another trend in the market is the increasing popularity of locally sourced and traditional beverages. Nepal has a rich cultural heritage and a diverse range of traditional beverages that are gaining popularity among consumers. These beverages often have unique flavors and are made using traditional methods and ingredients. The demand for these beverages is driven by a desire to connect with local traditions and support local producers. As a result, there has been a resurgence of traditional Nepali beverages such as lassi, a yogurt-based drink, and chiya, a spiced tea.

Local special circumstances: Nepal is a landlocked country with a predominantly rural population. The geography and infrastructure of the country present unique challenges for the Non-Alcoholic Drinks market. The distribution of beverages can be challenging, especially in remote areas with limited access to transportation and refrigeration. This has led to the development of innovative distribution models, such as the use of local retailers and community-based networks, to reach consumers in these areas. Additionally, the local taste preferences and cultural norms also influence the types of non-alcoholic drinks that are popular in Nepal.

Underlying macroeconomic factors: The Non-Alcoholic Drinks market in Nepal is influenced by several macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a higher demand for non-alcoholic beverages as consumers have more purchasing power. Additionally, the growing tourism industry in Nepal has also contributed to the growth of the Non-Alcoholic Drinks market. Tourists, both domestic and international, are increasingly seeking out local beverages and traditional flavors, driving the demand for these products. In conclusion, the Non-Alcoholic Drinks market in Nepal is developing in response to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards healthier and more natural beverage options, the rise of functional beverages, the popularity of locally sourced and traditional beverages, the unique challenges of distribution in Nepal, and the country's economic growth and tourism industry all contribute to the growth and development of the market.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.