MAPs AND ESSENTIAL OILS

182 Pages·2017·6.41 MB·English

MAPs AND ESSENTIAL OILS 1
FROM NEPAL
Published by: Co-financed by: In Cooperation with:
MAPs AND
ESSENTIAL OILS
FROM NEPAL
Market Analysis And Market Entry Strategy
In the China Market
Imprint
Published by
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
Registered offices
Bonn and Eschborn, Germany
Trade Promotion Programme (TPP)
National Trust for Nature Conservation
(NTNC) Complex
Khumaltar, Lalitpur
P.O. Box 1457
Kathmandu, Nepal
T: + 977-1-555 5289
F: + 977-1-5554593
E: [email protected]
I: www.giz.de/nepal
As at
June 2017
Author
Lex van Boeckel, searce insights research
Photographs
Lex van Boeckel
Illustrations and MAPs
Jacqueline Vissers
Design & Print process
www.thesquare.com.np
This publication is a part of ‘MAPs and Essential Oils from Nepal - Market Analysis and Market Entry Strategy in
Five Selected Markets’ Find the full version of the report in: https://www.giz.de/en/mediacenter/publications.html.
GIZ is responsible for the content of this publication.
On behalf of the
German Federal Ministry for Economic Cooperation and Development (BMZ)
Alternatively: German Federal Foreign Office
MAPs AND
ESSENTIAL OILS
FROM NEPAL
Market Analysis And Market Entry Strategy
In the China Market
Published by: Co-financed by: In Cooperation with:

MAPs AND ESSENTIAL OILS i
FROM NEPAL
Scope of the Study
Based on the Nepal Trade Integration Strategy (NTIS) 2010, a proposal in
implementing the NTIS in the sector of Medicinal and Aromatic Plants (MAPs) was
submitted to the Enhanced Integrated Framework (EIF) by the Government of Nepal
(GoN). The Implementing NTIS in Medicinal and Aromatic Plants (IN-MAPs) Project,
with the objective to strengthen the capacity of the MAPs actors in coordination and
implementation of the NTIS is financed by the EIF, the German Federal Ministry for
Economic Cooperation and Development (BMZ) and Government of Nepal (GoN).
On behalf of the BMZ, Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH supports the Ministry of Forests and Soil Conservation (MoFSC) to
execute the IN-MAPs project.
CLOSE SYNERGIES was built with the Nepali- The selection of the markets and products was done
German Trade Promotion Programme (IN-MAPs TPP) in two steps:
and the Nepali-German Inclusive Development of
the Economy (INCLUDE) Programme focusing on the 1. Discussions with stakeholders to identify current
implementation of the NTIS and providing support markets, desired markets, main current products and
in the MAPs sector in Nepal. The IN-MAPs Project future products in Nepal during visits from between
Collaborates extensively with the PAG and other 1 - 6 November 2015.
Development Partners involved in the MAPs sector.
2. Presentation of the summary of the study in the
To facilitate this activity of the IN-MAPs project, an core group meeting on the 6th of November - see
in-depth study to analyse the main markets for MAPs Annex 8.
and Essential oils and preparation of Market Entry
Strategies was needed being the basis for further Markets: The USA, Germany, France and India were
export promotion intervention of the MAPs sector in the most desired markets among the stakeholders
Nepal. and companies. China was chosen because of its size
and fast growth. Besides, it is geographically close to
The research objective of this study was to identify Nepal.
the size and opportunities in five selected markets for
eleven selected MAPs, Essential oils and Commodities Products: The priority products were Timur, Mentha,
that are locally collected and processed in Nepal. Asparagus, Cinnamon and Chiuri which are the main
products in the six target districts of the Nepal-
German INCLUDE programme in the Mid-Western
ii MAPs AND ESSENTIAL OILS
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and Far-Western regions of Nepal: Banke, Kailali, n Recommended strategy to strengthen the sector
Pyuthan, Surkhet, Dang and Kanchanpur - see in Nepal to the benefits of all actors in the value
Annex 9. The other products were selected through chain to encourage collaboration on all levels
discussions and suggestions by JABAN, NEHHPA and and to attract foreign companies for sustainable
other relevant stakeholders during the meeting. sourcing to gain more security in supplies, fair
prices and know-how for farmers, collectors,
The study provides recommendations to comply cooperatives and exporters.
with the strict market access requirements, develop n Enhancing the marketing skills by companies and
options to access the five selected markets, and cooperatives by taking a more customer oriented
gives recommendations for an overall global market approach by using marketing mix (product, price,
access strategy. This is done by providing relevance distribution and promotion strategy).
on:
n How to enter these markets with the best
Methodology for the study
opportunities for the selected MAPs products
from Nepal.
EXTENSIVE DESK RESEARCH was conducted
n How to comply with market access requirements where all available secondary source information
in the USA, Germany, France, China and India and
was accessed. A thorough search was made using
recommend how to enter these markets,
official statistics (ITC, Eurostat), research databases,
providing addresses of potential trade partners,
market reports - including from Euromonitor, trade
useful organisations and trade fairs in each
press, trade associations/web portals (COSSMA, Food
country.
Navigator, Food for Trade, Food World, Organic-Bio
n Giving the best recommendations for a global etc.), company information sources, governmental
market access strategy for Nepali companies
and non-governmental trade information as well as
and suggest how to move forward to reinforce
other information via the internet.
the MAPs sector in Nepal in a sustainable manner
with the support of governmental institutions,
FIELD RESEARCH was done at international
trade associations and NGOs.
shows (Food Ingredients in Paris 2015, Biofach in
Nuremberg in 2016) and through discussions and
The main topics in the second part that is
face-to-face and skype/phone interviews conducted
covered in Chapter 3 and were further
with buyers, technical experts in the field and
discussed during the validation workshop on
relevant consultants between November 2015 and
22nd of August 2016 with the stakeholders
March 2016.
include:
n Current situation of the MAPs/Essential oil Limitations
sector in Nepal.
n Choosing the best of the five markets for Nepali The scope of this study is primarily on the
exporters based on market size and detailed trade development and potential in exports markets in
statistics. terms of significance (market size), key segments and
n Global Trends in ingredients in the three key market opportunities. The current situation of the
segments (flavour, fragrance, medicinal) and MAPs sector in Nepal is briefly reviewed and issues
opportunities for the eleven selected products like production capacity of the exporting companies
from Nepal. but policy making were not requested in the ToR.
n How to comply with Access requirements
(Legislative, Quality and Voluntary). However, some recommendations are given in
n How to jointly apply for Organic Labelling (e.g. by Annex 8 based on the results of the validation
organic growers group). workshop with the stakeholders.
n Dealing with competitive countries and how
Nepal can differentiate by a USP (Unique Selling
Proposition).
MAPs AND ESSENTIAL OILS iii
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MAPs AND ESSENTIAL OILS v
FROM NEPAL
Acknowledgement
This market study was made under the Nepali- Khanal (ANSAB), Ms. Aruna Shukla (JABAN), Mr.
German Trade Promotion Programme (TPP) led Samir Dhungel (Khaptad Aroma), Mr. P.K. Sharma
by the Ministry of Commerce (MoC), Government (Gyan Herbals), Mr. Sanjay Jain (Bahubali Herbal
of Nepal and with Technical Assistance by the Essences), Mr. Jagannath Koirala (HPPCL), Mr. Jan
the Deutsche Gesellschaft für Internationale Pieter Servaas, Mr. Ian Liddell and - last but not least
Zusammenarbeit (GIZ) GmbH, commissioned by the - my wife Jacqueline for all her support.
German Federal Ministry for Economic Cooperation
and Development (BMZ). I especially would like to I sincerely appreciated the spirit of cooperation and
thank Mr. Durga Datta Regmi as well as Dr. Peter openness of all.
Richter, Ms. Himadri Palikhe, Ms. Safala Shrestha, Ms.
Jannu Chudal , Mr. Pankaj Kumar Das and Mr. Robert It has been a great challenge to make this study
Glass of GIZ for their support. and having more insight in the complex but very
interesting world of MAPs and Essential oils. I
I am also grateful to various stakeholders who have sincerely hope that this market study will be a good
provided me valuable input for this study, notably, reference tool for all stakeholders and will contribute
Mr. Marco Valussi (Officina Lessinia), Mr. Khiledra to further development of the MAPs sector in Nepal.
Gurung (HBTL), Mr. Kailash Dixit (Arya Aroma),
Mr. Govinda Ghimire (NEHHPA), Mr. Yubraj Subedi Lex van Boeckel
(NEHHPA), Mr. Ishwari Prasad Poudel (MoFSC), Mr. Searce
Rakesh Agarwal (HEAN), Mr. Toya Narayan Gyawali La Mationne
(MoC), Mr. Chhabindra Parajuli (MoC), Mr. Rajdev Saint Genes la Tourette
Prasad Yadav (DPR), Mr. Sanjeev Kumar Rai (DPR), France
Mr. Phadindra Prasad Pokharel (DoF), Mr. Bimal
Kumar Nepal (TEPC), Mr. Ishwari Prasad Ghimire www.searce.eu
(TEC), Mr. Puspa Ghimire (ANSAB), Dr. Sundarshan [email protected]