Coffee, husks, skins and substitutes market in Nepal

Earlier Report Observations

The market for coffee, husks, skins and substitutes in Nepal experienced significant fluctuations between 2018 and 2023. In physical terms, market volume fell from 1 586 t in 2018 to 806 t in 2019, primarily due to a sharp contraction in imports, which dropped from 1 167 t to 354 t. Despite the lower volume, the market's value rose from $5.1 million to $6.2 million over the same period, indicating a shift toward higher-value coffee products or increased unit prices. Production remained relatively stable, growing modestly from 513 t to 530 t.

The COVID-19 pandemic in 2020 disrupted global supply chains, affecting coffee trade in Nepal. Market volume further declined to 433 t, with imports falling to 185 t and production dropping to 297 t. The market value also decreased to $3.4 million. These declines were consistent with broader pandemic-related trade and logistical challenges.

From 2021 onward, the market recovered steadily. Volume grew to 492 t in 2021, 618 t in 2022, and 748 t in 2023, while value reached $4.1 million, $5.3 million, and $5.6 million respectively. Production also increased each year, supported by a global focus on sustainable cultivation and adaptation to climate change factors, which influenced agricultural output. The expansion was driven by both rising domestic production and recovering import flows.

Production coffee, husks, skins and substitutes in Nepal

In kind, 2017-2020, t

Top producers of coffee, husks, skins and substitutes, 2017-2020

World map of production of coffee, husks, skins and substitutes, 2017-2020

Coffee, husks, skins, and substitutes production in Nepal declined after two years of growth. In 2019, production reached its peak at 530.0 t, but then fell sharply to 297.0 t in 2020, marking a 44.0% decrease from the previous year. Over the period from 2017 to 2020, overall production dropped by 36.3%, which translates to an average annual decline of 13.9%. The largest year-on-year increase occurred in 2018, with a rise of 10.1%.

Annual dynamics of production in Nepal in kind, 2017-2020, t

In value, 2017-2020, K $ US

After two years of rising output, the production value of coffee, husks, skins, and substitutes in Nepal saw a decline. In 2019, production peaked at 5 860 K $ US, but in 2020, it fell sharply to 3 101 K $ US, representing a 47.1% drop compared to the previous year. From 2017 to 2020, the total production value decreased by 19.4%, with a compound annual growth rate (CAGR) of -7.0%. The most significant increase was recorded in 2018, at 41.6%.

Annual dynamics of production in Nepal in value, 2017-2020, K $ US

Exports coffee, husks, skins and substitutes from Nepal

Exports in kind, t

Nepal's export volume of coffee, husks, skins, and substitutes declined for the second year in a row. In 2020, exports amounted to 49 t, which is 36.7% lower than in 2019. Over the period from 2017 to 2020, total exports fell by 48.2%, with a compound annual growth rate (CAGR) of -19.7%. The largest increase was recorded in 2018, at 0.0%.

Annual dynamics of product's exports from Nepal in kind, 2017-2020, t

From 2017 to 2020, the main destinations for Nepal's exports of coffee, husks, skins, and substitutes in kind were Germany, Japan, and the United States. Germany accounted for 25.3% of exports, Japan for 23.5%, and the United States for 10.5%. Together, these three countries made up 59.3% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nepal in kind, 2017-2020

Exports in value, K $ US

The value of Nepal's coffee, husks, skins, and substitutes exports declined for the second consecutive year. In 2020, exports totaled 513 K $ US, a 40.2% decrease compared to 2019. Over the period from 2017 to 2020, export value dropped by 34.5%, with a compound annual growth rate (CAGR) of -13.1%. The highest value was recorded in 2018 at 1 006 K $ US, which also saw the largest increase of 28.6% that year.

Annual dynamics of product's exports from Nepal in value, 2017-2020, K $ US

Between 2017 and 2020, Germany, Japan, and the United States were the leading destinations for Nepal's coffee, husks, skins, and substitutes exports in value terms. Germany held a 28.3% share, Japan 21.6%, and the United States 12.3%. Combined, these three markets accounted for 62.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nepal in value, 2017-2020

Imports coffee, husks, skins and substitutes to Nepal

Imports in kind, t

Import volumes of coffee, husks, skins, and substitutes in Nepal showed significant fluctuations during the period. In 2017, imports bottomed out, while they peaked in 2018 at 1 167 t, representing a 10.5-fold difference between these years. In 2020, imports stood at 185 t, a sharp decrease of 47.7% from 2019. The largest decline occurred in 2019, at 69.7%, while the most substantial increase was in 2018, at 951.6%.

Annual dynamics of product's imports to Nepal in kind, 2017-2020, t

From 2017 to 2020, India dominated Nepal's imports of coffee, husks, skins, and substitutes in kind, accounting for 96.5% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nepal in kind, 2017-2020

Imports in value, K $ US

The import value of coffee, husks, skins, and substitutes in Nepal was volatile during these years. In 2017, imports were at their lowest, while they reached a high in 2019 at 1 235 K $ US, showing a 2.6-fold difference between these years. In 2020, imports totaled 854 K $ US, a sharp decline of 30.8% from 2019. The largest increase was recorded in 2019, at 92.4%.

Annual dynamics of product's imports to Nepal in value, 2017-2020, K $ US

Over the period from 2017 to 2020, India was the primary source for Nepal's imports of coffee, husks, skins, and substitutes in value terms, with a share of 79.6% of total flows. Other markets contributed smaller portions, forming a long tail of minor partners.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nepal in value, 2017-2020