Unroasted, not decaffeinated coffee market in Nepal

Earlier Report Observations

From 2018 to 2019, the market volume for unroasted, not decaffeinated coffee in Nepal expanded significantly, reaching 700.7 tons. This growth was driven by the Nepal Coffee Federation actively promoting Nepali coffee on international markets to improve producer access, while the National Tea and Coffee Development Board noted rising export and domestic consumption that motivated farmers to cultivate coffee as a major income crop. The sector also saw the introduction of organic farming as a quality strategy, and Nepalese coffee commanded premium prices due to its lower caffeine content and smaller bean size, further stimulating production.

Market volume contracted to 369.5 tons in 2020. During this period, coffee shops focused on building community and adapting to customer trends using technology, while increased competition attracted new players and specialty products like freshly roasted coffee emerged. Recovery followed in 2021, with volume rising to 437.4 tons as the Nepal Himalayan Organic Coffee Industry scaled production across 19 districts and the Nepal Coffee Federation provided strategic marketing support, aligned with a growing consumer preference for quality and specialty coffee.

The market continued its upward trajectory, reaching 557.5 tons in 2022. This growth was supported by state-owned entities like Nepal Coffee Company (NeCCo) commercializing production and a regulatory focus on organic certification and quality standards to maintain premium market positioning. Volume increased further to 707.4 tons in 2023, sustained by consumer trends favoring freshly brewed and specialty coffee, with coffee shops acting as cultural hubs that influenced consumption patterns.

Production unroasted, not decaffeinated coffee in Nepal

In kind, 2017-2020, t

Top producers of unroasted, not decaffeinated coffee, 2017-2020

World map of production of unroasted, not decaffeinated coffee, 2017-2020

Nepal's production of unroasted, non-decaffeinated coffee declined after two years of growth. In 2020, output fell sharply to 297.0 tonnes, representing a 44.0% year-on-year decrease. Production peaked in 2019 at 530.0 tonnes, but over the 2017-2020 period, it dropped by 36.3%, averaging an annual decline of 13.9%. The largest annual increase occurred in 2018, when production rose by 10.1%.

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

In value, 2017-2020, K $ US

Nepal's production value of unroasted, non-decaffeinated coffee fell for the second consecutive year. In 2020, output was valued at 3 149 thousand US dollars, down 46.0% from the previous year. The highest value was recorded in 2018 at 5 850 thousand US dollars, which also saw the largest annual increase of 35.9%. Overall, from 2017 to 2020, production value decreased by 26.9%, with a compound annual growth rate of -9.9%.

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

Exports unroasted, not decaffeinated coffee from Nepal

Exports in kind, t

Export volumes of unroasted, non-decaffeinated coffee from Nepal showed significant volatility between 2017 and 2020. The lowest point was in 2017, while exports peaked in 2019 at 75.0 tonnes, creating a 2.4-fold difference between these years. In 2020, exports dropped dramatically to 44.6 tonnes, a 40.6% decrease from 2019. The largest annual increase occurred in 2018, with a surge of 116.9%.

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

From 2017 to 2020, Germany, Japan, and the United States were the main destinations for Nepal's exports of unroasted, non-decaffeinated coffee by volume. Germany accounted for 34.3% of exports, Japan for 24.8%, and the United States for 8.8%. Together, these three countries absorbed 67.9% of Nepal's total export volume during this period.

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 exports of unroasted, non-decaffeinated coffee experienced notable fluctuations from 2017 to 2020. Exports reached their lowest point in 2017 and peaked in 2019 at 825.7 thousand US dollars, resulting in a 2.8-fold variation. In 2020, export value fell sharply to 472.5 thousand US dollars, a 42.8% year-on-year decline. The largest annual increase was in 2018, with a jump of 167.7%.

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 contributors to the value of Nepal's exports of unroasted, non-decaffeinated coffee. Germany represented 35.3% of export value, Japan 21.6%, and the United States 9.6%. Collectively, these three markets accounted for 66.6% of Nepal's total export earnings from this product.

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

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

Imports unroasted, not decaffeinated coffee to Nepal

Imports in kind, t

Import volumes of unroasted, non-decaffeinated coffee into Nepal varied considerably from 2017 to 2020. Imports hit their lowest point in 2017 and reached a peak in 2019 at 245.8 tonnes, showing a 3.5-fold amplitude. In 2020, imports declined to 117.1 tonnes, a 52.4% drop from the previous year. The largest annual increase occurred in 2019, with a rise of 103.8%.

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

From 2017 to 2020, India was overwhelmingly the primary source for Nepal's imports of unroasted, non-decaffeinated coffee by volume, accounting for 99.8% of total imports during this period.

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

After two years of growth, the value of Nepal's imports of unroasted, non-decaffeinated coffee declined in 2020. Imports amounted to 359.6 thousand US dollars, marking a sharp 37.5% decrease from the previous year. The highest value was recorded in 2019 at 575.8 thousand US dollars, while the largest annual increase was in 2018 at 60.7%. Over the 2017-2020 period, import value increased by 56.7%, averaging an annual growth rate of 16.1%.

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

Between 2017 and 2020, India dominated Nepal's imports of unroasted, non-decaffeinated coffee by value, capturing 99.5% of the total import flows.

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

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