Nepal: Sugary Soft Drink Market 2024

Sugary Soft Drink Market Size in Nepal

The Nepalese sugary soft drink market dropped slightly to $X in 2022, stabilizing at the previous year. The market value increased at an average annual rate of +2.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, consumption attained the peak level of $X. From 2020 to 2022, the growth of the market remained at a lower figure.

Sugary Soft Drink Production in Nepal

In value terms, sugary soft drink production reduced modestly to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +2.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2019 with an increase of 23% against the previous year. As a result, production reached the peak level of $X. From 2020 to 2022, production growth failed to regain momentum.

Sugary Soft Drink Exports

Exports from Nepal

In 2022, the amount of sugary soft drinks exported from Nepal contracted notably to X litres, declining by -49.9% compared with 2021. In general, exports, however, continue to indicate a significant expansion. The pace of growth was the most pronounced in 2021 when exports increased by 41,168%. As a result, the exports reached the peak of X litres, and then shrank dramatically in the following year.

In value terms, sugary soft drink exports fell remarkably to $X in 2022. Overall, exports, however, showed a significant expansion. The growth pace was the most rapid in 2021 when exports increased by 39,946%. As a result, the exports attained the peak of $X, and then contracted sharply in the following year.

Exports by Country

The UK (X litres) was the main destination for sugary soft drink exports from Nepal, with a 94% share of total exports. Moreover, sugary soft drink exports to the UK exceeded the volume sent to the second major destination, the United States (X litres), more than tenfold.

From 2012 to 2022, the average annual growth rate of volume to the UK stood at +46.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+41.3% per year) and China (-10.1% per year).

In value terms, the UK ($X) remains the key foreign market for sugary soft drinks exports from Nepal, comprising 83% of total exports. The second position in the ranking was taken by the United States ($X), with an 11% share of total exports.

From 2012 to 2022, the average annual growth rate of value to the UK totaled +44.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+22.3% per year) and China (-8.8% per year).

Export Prices by Country

In 2022, the average sugary soft drink export price amounted to $X per litre, approximately equating the previous year. In general, the export price, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 when the average export price increased by 46%. As a result, the export price reached the peak level of $X per litre. From 2018 to 2022, the average export prices remained at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the United States ($X per litre), while the average price for exports to the UK ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to China (+1.4%), while the prices for the other major destinations experienced a decline.

Sugary Soft Drink Imports

Imports into Nepal

In 2022, overseas purchases of sugary soft drinks decreased by -45.4% to X litres for the first time since 2019, thus ending a two-year rising trend. Over the period under review, imports continue to indicate a noticeable decrease. The most prominent rate of growth was recorded in 2021 when imports increased by 563% against the previous year. As a result, imports reached the peak of X litres, and then fell rapidly in the following year.

In value terms, sugary soft drink imports shrank sharply to $X in 2022. In general, imports, however, recorded a strong increase. The pace of growth was the most pronounced in 2021 with an increase of 888%. As a result, imports attained the peak of $X, and then shrank rapidly in the following year.

Imports by Country

South Korea (X litres), the Netherlands (X litres) and Turkey (X litres) were the main suppliers of sugary soft drink imports to Nepal, together accounting for 57% of total imports. The UK, Vietnam, Poland, Bhutan, Malaysia, Austria and India lagged somewhat behind, together accounting for a further 38%.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Poland (with a CAGR of +59.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, South Korea ($X) constituted the largest supplier of sugary soft drinks to Nepal, comprising 29% of total imports. The second position in the ranking was held by the UK ($X), with a 13% share of total imports. It was followed by the Netherlands, with a 12% share.

From 2012 to 2022, the average annual growth rate of value from South Korea totaled +64.7%. The remaining supplying countries recorded the following average annual rates of imports growth: the UK (+54.0% per year) and the Netherlands (+17.3% per year).

Import Prices by Country

The average sugary soft drink import price stood at $X per litre in 2022, flattening at the previous year. Overall, import price indicated a buoyant increase from 2012 to 2022: its price increased at an average annual rate of +7.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, sugary soft drink import price increased by +78.6% against 2017 indices. The pace of growth was the most pronounced in 2019 an increase of 55%. The import price peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Austria ($X per litre), while the price for Turkey ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Vietnam (+16.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform