Be it a cup of cappuccino to soothe your taste buds or a shot of espresso to kick start your day, coffee has garnered a massive following in recent years. Some of us are hooked on it for our daily functioning but the majorities simply seek it for their taste. Coffee has become an integral part of our daily lifestyle. Coffee was present in the country for a long but it took the people until the early 2000�s to truly realize its value.
A popular commodity a decade back mostly because of the tourists that sought it while visiting the country. However, at present, the coffee craze is mostly among the Nepali people. The business has grown to big industry with almost every caf� and restaurant offering some or the other forms of this beverage. Coffee has managed to hold down people not as an addiction but more so like their favorite beverage item that they constantly want to drink and never get bored.
Coffee is like an alternative of the overpriced energy drinks; a cup or two of coffee will get most through a long hard day at work.
The millennial seem to be at the heart of this craze, with these people thronging to coffee shops to spend their time with friends beside their favorite cup of coffee. But it is not just the young that are fond of coffee. Many elderly people are also seen spending time at a coffee shop. Be it for business or pleasure, coffee shops are more than happy welcoming customers into their stores.
With demand for quality brewed coffee, comes the requirement for skilled employees who not only know their way about a coffee machine but also can whip up exciting and picturesque cups of coffee to enthuse their customers. This is something that has been lacking severely in the industry and many are struggling to retain employees who have the knowledge and craft to succeed in the business.
While the demand for coffee is exceedingly high, the industry has been meeting this demand rather well too. Coffee shops are popping up in every nook and corner of the country. Be it close to Mt. Everest or along the remote highways of the country, you can expect to find people selling some form of coffee everywhere. Coffee has also turned into a business opportunity for many a people, as they don�t think twice before setting up a coffee shop of their dreams.
At present, Nepal�s demand for coffee is being met by the many coffee plantations around the country that are supplying coffee beans in the market. The suppliers aren�t only providing the local market with coffee but are also making sure that Nepali coffee is known elsewhere in the world too through exports. The country has seen a significant growth in the number of people investing in coffee too. Coffee plantations around the country are increasingly rising.
History of Coffee in Nepal
The first coffee seeds in the country were planted in Aapchaur of Gulmi district. A hermit by the name of Hira Giri has been credited for bringing the country�s first coffee seed in the year 1938 from the Sindu province of Myanmar. Though the seed was planted, the crop did not garner the attention until the 1970�s.
In the late seventies, expansion of coffee as commercial crop started to gain reputation as the government had started to import coffee seeds from India to distribute it nationwide. However, the major shift to commercial Coffee production took place in the mid-eighties.
After the establishment of the country�s first coffee manufacturing company in 1983 in the form of Nepal Coffee Company (NeCCo) in Manigram, Rupandehi district, the coffee producers were able to market and sell coffee. NeCCo collected dry cherry from the coffee producers and processed the coffee for domestic market. Even after the establishment of NeCCo, the industry didn�t take off immediately.
A major issue being the lack of knowledge and the lack of coffee farmers proved to be a big hurdle. NeCCo took the responsibilities upon themselves to educate the farmers from the rural mid-hills about the various prospects of growing coffee beans.
Drinking coffee was a rare sight in the past and a luxurious commodity for many. It was a very acquired taste to begin with and given that Nepali people were accustomed to tea, the strong taste of coffee was certainly a pushback. We required people from foreign countries to properly teach us the ways of coffee and get used to it.
There are plenty of different coffee beans, each with a variation in taste but back then, coffee was plain and simple like how many of us know it today to be. It was mostly consumed just like tea with a mixture of coffee and milk. However, the coffee business really took off once the country had an increase in the number of tourists. The same tourists also taught Nepali people how to brew a proper cup of coffee and taught them the basics of coffee cultivation.
While coffee was always present in the country, it was not until the 1980�s that coffee really started to make strides in the market. Coffee cultivations started to pop up because the commodity was doing well in the market. Various plantations across the country also gave employment opportunities to the locals and the idea of cultivating Nepali coffee grew more popular over time.
After the year 2002, a substantial increase in the export and also increase in domestic market consumption to some extent motivated coffee producers to consider coffee as a major income-generating crop.
Coffee Culture & Potential in Nepal
The coffee culture here is still very new and Nepal is playing catch up to the rest of the world. The scene is certainly on its way upwards, but we still have long ways to go before we can start calling ourselves coffee aficionados. We drink coffee not for the energy caffeine provides, but for the sole purpose of its taste and only a handful drink it to reap its benefits. Coffee in Nepal is seen more as an alternative to the regular cup of tea that we are so used to drinking at our homes and elsewhere.
According to information provided by Tea and Coffee board of Nepal, the country imported 163,377 kilograms of coffee while exporting 84,219 kilograms of coffee in the fiscal year 2017/2018. The amount of coffee beans being imported suggests that the country�s demands for coffee are exceedingly high. Through these numbers alone we can analyze the coffee needs for Nepali people. The import figure in coffee is rising constantly and consistently throughout the last couple of years and shows no signs of stopping. This statistic shows that coffee beans being produced in Nepal are not enough to meet domestic needs, hence the need for large imports.
Among the 22 countries Nepal exported coffee to, Japan, United States and Germany were the largest exporters of Nepali coffee.
�Coffee for me is like an energy drink. I drink over 3 cups of coffee over the course -of the day and it is what helps me concentrate and work hard. I don�t care about the taste too much since I mostly drink black coffee. The number of restaurants and cafes serving coffee is great because I can get a cup of coffee no matter where I am these days�, according to Kushal Singh, one of the few people we spoke to who says coffee is what keeps him going through the day.
�I would like to see a bit more consistency in the pricing over a cup of coffee, but I suppose the location of the coffee shop and other factors come into play here.�
However, the number of people who rely on coffee to fuel their day to their activities are significantly lower than those that drink for pleasure. Businesses have realized this and target people who are more willing to spend time at their cafes and order more than just a cup a coffee.
Of the many popular establishments around the country, a few stand out for not just their quality coffee, but also their reputation as a market leader in the vastly competitive scene. One of the most popular coffee joints in the country, The Himalayan Java has been whipping up cups of cappuccinos since the 90�s and they are the best known coffee chain in the country. They are also credited in bringing modern coffee culture in the country.
Foreign coffee companies have also seen potential in Nepali markets and have invested their resources here as well. Illy & Lavazza, globally renown Italian coffee brands has been selling in various outlets, while the Indian coffee chain, Caf� Coffee Day has also launched opening outlets in Nepal expanding their reach.
While scanning the statistics maintained by National Tea and Coffee Development Board, the country earned Rs 93.72 million by exporting 84 tons of roasted coffee beans while it spent Rs 65.89 million on importing 163 tons of coffee specially decaffeinated and instant coffee. There is huge potential of processing coffee beans to create variety of processed products for internal consumption as well as export at high value.
The Craze
We connected with various random people at coffee shops around the capital but the responses we received weren�t definitive. Many suggested they like coffee simply as a beverage, while others suggested that they like to drink coffee because they can hang out with their friends in coffee shops. However, a common answer among most seem to be that many drink coffee not for the benefits it provides.
�For me a coffee shop represents more than just coffee. Coffee shops are a place where people go to hang out with their friends and spend time after work to unwind from a hard long day. I visit coffee shops very often with my friends who like to hang out there just as much. The coffee is great but coffee and coffee shops are much more than just a cup of coffee for people like me�, says Vivek Tuladhar, a resident from Baluwatar.
�Coffee shops very trendy these days. Posting social media, the ambience is a very nice setting for my feed too. Besides, coffee is a very nice beverage too�, says Manisha Chettri, on being asked why she likes to go to coffee shops.�
Social media influence cannot be understated here. Since the age group among those flocking to coffee shops range from anywhere in-between 18-27, we c
an picture as to why social media has influenced the growth of coffee in the country.
The Challenges
The coffee shops in the country face one task that has eluded them for some time now. At the rate the coffee shops are increasingly becoming popular and new ones opening almost every day, the lack of skilled labor has been a hurdle difficult to move past.
But as Nepali people tend to find a workaround for most problems, we have found a fix for this problem as well in the form of dedicated barista institutions. Around the country these institutions are popping up hoping to produce fine baristas to meet the demand for skilled labor. This is a part of a solution but, even these institutions have not been able to provide skilled people fast enough.
If the coffee shops were to offer adequate pay and various incentives, maybe more people would be encouraged to take up being a barista as a career.
What the Future Holds?
Since the country first started growing coffee beans, times have changed significantly. The country is now growing Arabica beans of the highest quality that are in high demand in markets around the world.
As of now, Nepal is on track to becoming a strong force in the global coffee industry. Not just because we are developing a taste for quality coffee but also since the country has been producing fine coffee beans for export around the world. Our coffee beans have been in high demand but we as a country need to properly develop and invest in this sector to truly prosper. Nepal now needs to develop industry to produce various types of roasted beans, decaffeinated coffee powders, etc. and compete in international market with its unique taste.
Nepali coffee drinkers also further need to be properly educated on the different forms and tastes of coffee to enhance their taste and their affection for coffee so they can differentiate between quality cups of coffee on their own.
Business opportunities are also vast in this sector and with proper research an
d investment; you are looking at potentially a very big industry. However, for this to happen, the government needs to step in and grant support and resources to coffee planters, processors and exporters.
Regardless, the future for Nepal and it's coffee drinkers are looking very bright. There seems to be no end in sight for coffee here and that can only benefit the overall economy.











