Ready-to-Drink (RTD) Coffee & Tea - Nepal

The Ready-to-Drink (RTD) Coffee & Tea market in Nepal has been experiencing significant growth in recent years.

Customer preferences: Nepal, known for its rich tea culture, has seen a shift in consumer preferences towards convenience and on-the-go products. The busy lifestyles of urban consumers have led to an increased demand for ready-to-drink beverages, including coffee and tea. Consumers are looking for products that are convenient, easy to consume, and offer a quick energy boost. The younger population, in particular, is driving this trend, as they are more open to trying new and innovative products.

Trends in the market: One of the key trends in the RTD Coffee & Tea market in Nepal is the growing popularity of cold brew coffee. Cold brew coffee is made by steeping coffee grounds in cold water for an extended period, resulting in a smoother and less acidic taste compared to traditional hot brewed coffee. This trend is driven by the rising demand for healthier and less processed beverages. Cold brew coffee is often perceived as a healthier alternative to other coffee beverages, as it is typically lower in acidity and bitterness. Another trend in the market is the increasing availability of flavored and functional RTD coffee and tea products. Manufacturers are introducing a wide range of flavors, such as caramel, vanilla, and mocha, to cater to the diverse preferences of consumers. Additionally, there is a growing demand for functional beverages that offer added health benefits, such as antioxidants or natural energy boosters. This trend is driven by the increasing health consciousness among consumers and their desire for functional products that align with their wellness goals.

Local special circumstances: Nepal has a strong tea culture, with tea being a staple beverage in the country. This cultural preference for tea has influenced the RTD Coffee & Tea market in Nepal, with tea-based beverages being more popular than coffee-based ones. However, there is a growing interest in coffee among the younger generation, who are more exposed to international coffee culture through travel and social media. This has led to an increase in the availability and consumption of RTD coffee products in the market.

Underlying macroeconomic factors: The growing economy of Nepal, coupled with rising disposable incomes, has contributed to the growth of the RTD Coffee & Tea market. As consumers have more purchasing power, they are willing to spend on premium and convenient products like RTD beverages. Additionally, the increasing urbanization and modernization of the country have created a favorable environment for the growth of the RTD Coffee & Tea market. The expansion of modern retail channels, such as supermarkets and convenience stores, has made these products more accessible to consumers. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in Nepal is witnessing significant growth due to changing customer preferences towards convenience and on-the-go products. The market is characterized by the growing popularity of cold brew coffee and the availability of flavored and functional RTD beverages. The strong tea culture in Nepal has influenced the market, with tea-based beverages being more popular than coffee-based ones. The growing economy, rising disposable incomes, and increasing urbanization are underlying macroeconomic factors driving the growth 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.