Soft Drinks - Nepal

The Soft Drinks market in Nepal has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Nepal, there has been a shift in customer preferences towards healthier beverage options, such as low-sugar or sugar-free soft drinks, as well as natural and organic drinks. This trend is in line with global market trends, where consumers are becoming more health-conscious and seeking out products that align with their wellness goals. As a result, soft drink manufacturers in Nepal have been introducing new product lines that cater to these changing preferences, including a variety of low-calorie and natural drinks.

Trends in the market: One of the key trends in the Soft Drinks market in Nepal is the increasing popularity of local and regional brands. Nepali consumers have shown a growing preference for locally-produced soft drinks, as they are seen as more authentic and supportive of the local economy. This trend is also driven by a sense of national pride and a desire to promote local entrepreneurship. As a result, local soft drink brands have been gaining market share and expanding their product offerings to meet the demand. Another trend in the market is the growing popularity of ready-to-drink (RTD) beverages, particularly among busy urban consumers. RTD soft drinks offer convenience and portability, making them a popular choice for on-the-go consumption. This trend is driven by changing lifestyles and the increasing number of people living in cities who are seeking quick and convenient refreshment options. Soft drink manufacturers in Nepal have responded to this trend by introducing a wide range of RTD beverages in various flavors and packaging formats.

Local special circumstances: Nepal's geographical location and unique cultural heritage also play a role in shaping the Soft Drinks market. The country is known for its diverse terrain, including the Himalayas, which presents logistical challenges for distribution and transportation. Soft drink manufacturers have had to adapt their supply chain strategies to overcome these challenges and ensure that their products reach all parts of the country. Additionally, Nepal's cultural festivals and religious traditions have a significant impact on soft drink consumption patterns. For example, during festivals like Dashain and Tihar, there is a high demand for soft drinks, as they are an integral part of the celebrations.

Underlying macroeconomic factors: The Soft Drinks market in Nepal is influenced by various macroeconomic factors, including population growth, urbanization, and rising disposable incomes. The country's population is growing steadily, which means there is a larger consumer base for soft drink manufacturers to target. Urbanization is also on the rise, with more people moving to cities in search of better job opportunities and a higher standard of living. This urban population tends to have higher disposable incomes and is more likely to consume soft drinks. As a result, soft drink manufacturers have been focusing their marketing efforts on urban areas to capitalize on this trend. In conclusion, the Soft Drinks market in Nepal is experiencing growth due to changing customer preferences towards healthier options, the increasing popularity of local brands, the trend of ready-to-drink beverages, local special circumstances, and underlying macroeconomic factors. Soft drink manufacturers in Nepal are adapting to these trends by introducing new product lines, expanding their distribution networks, and targeting urban consumers.

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.