Pastry market in Nepal

Earlier Report Observations

The pastry market in Nepal grew steadily from 11 641 t in 2018 to 16 335 t in 2021. This expansion was primarily driven by the privatization process and increased participation of private sector players, which encouraged new entrants into production and distribution. Concurrently, improvements in local market management through the formation of Haat Bazaar management committees and new policies for agricultural markets enhanced distribution networks. Strengthened market regulation and consumer protection measures under the Competition Promotion and Market Protection Act, 2063, further supported consumer confidence and demand growth.

After peaking in 2021, the market volume contracted to 14 910 t in 2022 and further to 11 859 t in 2023. This decline coincided with a sharp drop in imports, which fell from over 8 100 t in 2021 to 3 877 t in 2023, while domestic production showed only minor fluctuations.

Production pastry in Nepal

In kind, 2017-2020, t

Top producers of pastry, 2017-2020

World map of production of pastry, 2017-2020

In 2020, Nepal produced 8,112 tons of pastry, marking a 6.2% increase compared to 2019. However, looking at the broader period from 2017 to 2020, production actually decreased by 25.7%, with a compound annual growth rate of -9.4%. The lowest production level was recorded in 2018 at 7,639 tons, which also saw the largest decline of 30.0%.

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

Exports pastry from Nepal

Exports in kind, t

The market showed an unstable trend throughout this period. Export volumes reached their lowest point in 2018 at 0.0 tons and peaked in 2020 at 16 tons, representing a 521-fold difference between these years. In 2020, cross-border shipments of pastry from Nepal reached 16 tons, indicating a sharp increase of 340.5% compared to 2019. The largest decline occurred in 2018 at 99.6%, while the largest increase was recorded in 2019 at 11,733.3%.

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

From 2017 to 2020, China and Australia clearly dominated Nepal's pastry export structure in kind, with other countries collectively accounting for the remaining share.

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

Volatility characterized the market during these years. Export values hit their lowest point in 2018 at 0.1 thousand US dollars and reached their highest in 2020 at 41 thousand US dollars, showing a 314-fold variation. In 2020, exported pastry volumes from Nepal stood at 41 thousand US dollars, reflecting a gain of 150.1% over the previous year. The largest decline was recorded in 2018 at 98.9%, while the largest increase occurred in 2019 at 12,440.3%.

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

Between 2017 and 2020, two markets—Australia and China—played leading roles in Nepal's pastry exports in value terms, together accounting for 87.3% of total flows, with the rest distributed among other destinations.

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

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

Imports pastry to Nepal

Imports in kind, t

Cross-border shipments of pastry to Nepal increased for the third consecutive year. In 2020, imports stood at 6,338 tons, reflecting a sharp rise of 50.4% compared to the previous year. Over the period from 2017 to 2020, imports increased by 142.2%, with a compound annual growth rate of 34.3%.

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

From 2017 to 2020, two leading markets—India and Bangladesh—together accounted for 89.1% of total imports in kind, while the remaining volume was dispersed across a wide range of other countries.

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

Nepal's pastry imports increased for the third consecutive year. In 2020, imports totaled 11,412 thousand US dollars, corresponding to a sudden rise of 36.4% versus the previous year. Over the period from 2017 to 2020, imports increased by 124.7%, with a compound annual growth rate of 31.0%.

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

Between 2017 and 2020, India (62.6% of imports in value terms), Bangladesh (16.7% of imports in value terms), and Malaysia (7.5% of imports in value terms) stood out as the main markets for Nepal's pastry imports in value terms, together representing 86.8% of total flows.

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

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