Ready-to-Drink (RTD) Coffee - Nepal

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

Customer preferences: Nepal, known for its rich tea culture, has traditionally been a tea-drinking nation. However, there has been a noticeable shift in consumer preferences towards coffee, particularly among the younger generation. The convenience and portability of RTD coffee products have made them increasingly popular among busy urban dwellers who are seeking quick and on-the-go caffeine fixes.

Trends in the market: One of the key trends in the RTD Coffee market in Nepal is the increasing demand for flavored and specialty coffee beverages. Consumers are becoming more adventurous in their taste preferences and are willing to try new and unique flavors. This trend is driving the introduction of innovative RTD coffee products with flavors such as caramel, vanilla, and hazelnut. Additionally, there is a growing demand for cold brew and nitro cold brew coffee, which offer a smoother and less acidic taste compared to traditional hot brewed coffee.

Local special circumstances: Nepal's growing urbanization and changing lifestyle patterns have contributed to the rise in the popularity of RTD coffee. The increasing number of cafes and coffee shops in major cities like Kathmandu and Pokhara has played a significant role in promoting coffee culture and creating awareness about RTD coffee products. Furthermore, the influence of Western culture and the rise of social media platforms have also contributed to the growing interest in coffee among Nepalese consumers.

Underlying macroeconomic factors: Nepal has been experiencing steady economic growth in recent years, which has led to an increase in disposable income among the middle class. This rise in purchasing power has made RTD coffee more affordable and accessible to a larger segment of the population. Moreover, the growing tourism industry in Nepal has also contributed to the growth of the RTD coffee market, as tourists from around the world bring with them their coffee-drinking habits and preferences. In conclusion, the Ready-to-Drink (RTD) Coffee market in Nepal is witnessing significant growth due to changing customer preferences, the introduction of innovative flavors and specialty coffee beverages, local special circumstances such as urbanization and the influence of Western culture, and underlying macroeconomic factors such as rising disposable income and the growth of the tourism industry. As the market continues to evolve, it presents opportunities for both domestic and international coffee brands to cater to the growing demand for RTD coffee in Nepal.

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.