RESEARCH PROPOSAL ON COFFEE MARKET ANALYSIS AND
CONSUMER SATISFACTION
Submitted By :
Subarna Balami
Roll no. 20031492
Submitted To:
Citizen College
Kumaripati, Lalitpur
Table of Contents
INTRODUCTON .................................................................................................................................. 3
1.1 Background of the study ............................................................................................................ 3
1.2 Statement of problem ................................................................................................................. 4
1.3 Objectives of the study ................................................................................................................ 4
1.4 Significance of the study ............................................................................................................. 5
1.5 Limitation of the study ............................................................................................................... 5
CHAPTER -1
INTRODUCTON
1.1 Background of the study
The coffee industry has gained significant momentum in Nepal over the past decade,
driven by a growing demand for specialty coffee both domestically and internationally.
This study aims to conduct a comprehensive analysis of the coffee market in Nepal, with
a specific focus on consumer satisfaction. By examining various factors such as
production, consumption patterns, market trends, and consumer preferences, this research
seeks to provide insights into the current state of the coffee industry in Nepal and identify
areas for improvements. The main objective of the study is to assess the current status of
the coffee market in Nepal, including production volumes, cultivation practices, and the
role of key stakeholders, it also identifies the major market players, their strategies and
market dynamics influencing the coffee industry in Nepal. It analyzes consumer
preferences, perceptions, and satisfaction levels regarding coffee products in Nepal and
also explore the challenges and opportunities faced by coffee producers, distributors and
retailers. Primarily a tea growing and drinking nation, coffee production is still relatively
new to Nepal. There are less than 35000 coffee farmers resulting the prices of coffee to
surged highs in the global market. By the mid-1980s the farmers started to grow coffee on
a commercial scale. Between 1983 and 1984, the Nepal Coffee Company (NeCCo) was
established in Manigram in the Rupandehi district. This means local farmers could
collectively process and dry mill their coffees for export, which helped to boost
production volumes. Throughout the 1990 more and more farmers started to grow coffee
as result, Nepal’s Ministry of Agriculture launched the Coffee Development Programme,
which provided technical and financial support to local producers. The Kavrepalanchok
district in eastern Nepal is the largest coffee producing region in the country – spanning
273 hectors and producing more than 32 tons of coffee. The second largest coffee
growing district in western Nepal, which spans 231 hectors and produces 27 tons of
coffee. Nepal’s climate and landscape make it ideal for growing arabica mostly because
of its high altitudes. In fact, many industry professionals say only arabica grows in Nepal.
However, at the same time, it’s also clear that for both production and consumption to
grow sustainably, Nepal’s coffee sectors needs more support, specially when it comes to
adapting to climate change.
1.2 Statement of problem
The coffee industry in Nepal has witnessed significant growth in recent years, with a
rising demand for specialty coffee. However, there is a need to evaluate the market
dynamics and consumer satisfaction in order to identify areas for improvement and
enhance the industry’s competitiveness. Thus, the main problem addressed in this study
is:
1. Lack of comprehensive analysis: There is a limited understanding of the current state
of the coffee market in Nepal, including production volumes, market size, and the role
of key stakeholders. A comprehensive analysis is needed to gain insights into the
industry’s structure and dynamics.
2. Consumer satisfaction: It is crucial to assess consumer preferences, perceptions and
satisfaction levels regarding coffee products in Nepal. Understanding consumer
behavior and factors influencing their buying decisions will provide valuable
information for industry players to enhance consumer satisfaction.
3. Market challenges and opportunities: The coffee industry in Nepal faces various
challenges, including limited infrastructure, quality control issues, and market access
barriers. Identifying these challenges and exploring opportunities for growth will
enable stakeholders to address the gaps and improves the overall market performance.
By addressing these problems, this study aims to contribute to the development of the
Nepalese coffee industry by providing actionable insights and recommendations for
enhancing market competitiveness and consumer satisfaction.
1.3 Objectives of the study
The study aims to achieve several objectives in order to comprehensively analyze the
coffee market in Nepal and assess consumer satisfaction. Some of are as follows,

To assess the current status of the coffee market in Nepal, including production
volumes, cultivation practices and the role of key stakeholders.

To identify the major market players, their strategies and market dynamics
influencing the coffee industry.

To analyze consumer preferences, perception and satisfaction levels regarding
coffee products in Nepal.

To examine the factors influencing consumer buying behavior and decision
making processes in the Nepalese coffee market.

To explore the challenges and opportunities faced by coffee producers,
distributors, and retailers in Nepal.

To provide recommendations for enhancing consumer satisfaction and overall
market growth in the Nepalese coffee industry.
By achieving these objectives, the study aims to contribute to the understanding of the
Nepalese coffee market and provide valuable insights to industry stakeholders for
informed decision-making and the sustainable growth of the coffee industry in Nepal.
1.4 Significance of the study
The study on coffee market analysis and consumer satisfaction in Nepal is important for
several reasons. Firstly, it will provide a clear understanding of the coffee industry in
Nepal, including its current state and challenges. This will help industry stakeholders and
policymakers make better decisions to support the growth of the coffee sector. Secondly,
the study will assess consumer preferences and satisfaction levels regarding coffee
products. By understanding what consumers want and how satisfied they are with the
available options, industry players can improve their offerings and enhance consumer
experiences, leading to increased customer satisfaction and loyalty. Overall, the study will
contribute to the development of the Nepalese coffee industry by providing valuable
insights for stakeholders to make informed decisions and improve consumer satisfaction.
1.5 Limitation of the study
The study on coffee market analysis and consumer satisfaction in Nepal may have certain
limitations, which include:
1. Sample size: The study's findings and conclusions may be limited by the sample size
of respondents surveyed or interviewed. If the sample is not representative of the
overall population, the results may not accurately reflect the broader consumer
sentiment and preferences in Nepal.
2. Data Collection Bias: There may be biases in the data collected, such as self-reporting
bias or respondent bias. These biases can impact the accuracy and reliability of the
findings.
3. External Factors: The study's findings may be influenced by external factors beyond
the researchers' control, such as changes in the political, economic, or social
environment
4. Generalizability: While the study aims to provide insights into the coffee market in
Nepal, the findings may not be directly applicable to other regions or countries. The
unique characteristics and dynamics of the Nepalese coffee market may limit the
generalizability of the study's results.
It's important to acknowledge these limitations to ensure a balanced interpretation of the
study's findings and to consider them when drawing conclusions or making decisions
based on the research.