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Ginger and Ginger Products from Nepal

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Published by: In cooperation with: GINGER AND GINGER PRODUCTS FROM NEPAL MARKET ANALYSIS AND MARKET ENTRY STRATEGY IN FOUR SELECTED MARKETS Imprint Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Trade Promotion Programme (TPP) National Trust for Nature Conservation (NTNC) Complex Khumaltar, Lalitpur P.O. Box 1457 Kathmandu, Nepal T + 977 1 5555289 F + 977 1 5554593 E [email protected] I www.giz.de/nepal Published 2017 Author Lex van Boeckel, Searce Photographs Lex van Boeckel Jacqueline Vissers Shutterstock Illustrations Jacqueline Vissers GIZ is responsible for the contents of publication On behalf for the German Federal Ministry for Economic Cooperation and Development (BMZ) Alternatively: German Federal Foreign Office GINGER AND GINGER PRODUCTS FROM NEPAL MARKET ANALYSIS AND MARKET ENTRY STRATEGY IN FOUR SELECTED MARKETS Published by: In cooperation with: SCOPE OF THE STUDY The Nepal Trade Integration Strategy (NTIS) by the The objective of this market study is to identify four Government of Nepal (GoN) aims to strengthen the diversified ginger products in Nepal and their market capacity of the Ginger sector. The Nepali-German Trade entry strategies and market requirements for four selected Promotion Programme (TPP) aims to improve the markets. implementation of the revised Nepal Trade Integration Strategy (NTIS) and is implemented under the guidance n Develop a competitive positioning for Nepalese of the Nepalese Ministry of Commerce (MoC). On behalf ginger products to increase their quality. of German Federal Ministry for Economic Cooperation n Show diversity in ginger products in addition to the and Development (BMZ), Deutsche Gesellschaft für traditionally produced limited value added varieties. Internationale Zusammenarbeit (GIZ) GmbH supports n Make the Ginger sector more export-oriented based MoC to execute the programme. The programme, covers on future growth prospects, acces requirements and three areas of action: technical standards for Nepalese ginger products. n Identify market segments for diversified ginger (i) Implementation of the trade strategy products by segmentation of some specific identified (ii) Improving the trade-related environment potential markets/niches on the basis of their market requirements and demand. (iii) Strengthening the export potential in selected value chains. The selection of the markets was done during a focus group discussion that was held on the 19 March 2017 Area (iii) of the Programme concentrates on international where the proposal for the market study and for ginger marketing, improving product quality, establishing product diversification was presented. international market linkages to strengthen the export potential of the companies in the ginger value chain. Markets: The UAE, Japan, India and Bangladesh were the most desired markets among the stakeholders and Ginger is a High Value Crop (HVC). It is estimated that 1.2 companies. Japan is the largest ginger market by value, million people (4.3% of the Nepali population) grow ginger the UAE is a fast growing market. India and Bangladesh all over Nepal, especially in the Eastern and Western are both fast growing markets that are geographically regions. Nepal is the 4th largest producers of fresh ginger close to Nepal. in the world of which the largest part is for the domestic market and all exported ginger is destined mainly for Products: The priority products were fresh ginger, dried India. ginger, ginger pickles, ginger candy and ginger essential oils/oleoresins for the following reasons: Being a priority product of NTIS 2016 export potential sector, the programme aims to facilitate the trade related n Ginger Fresh: With improvement in cleaning, grading capacity of the ginger sector of Nepal. Therefore, an in- and sorting, packaging, it will be ready to export and depth study- “Product diversification and development may face lesser SPS (Sanitary and Phytosanitary) of strategy as per market requirement” was needed. It was measures from the selected importing markets. expected that the purpose of this assignment will be the base for generating income for ginger farmers, traders, n Dried Ginger: Nepalese traders have received demand exporters and cooperatives to decrease their dependency of dried Ginger from different international markets. on the Indian export market. i GINGER AND GINGER PRODUCTS FROM NEPAL Recently, during a visit to Dubai, with support from GIZ, Flavour segment traders have received order for one container of fresh n Fresh / Healthy e.g. starchy rots, breakfast cereals. and one container for dried ginger (whole and slice). n Herbs & Spices. n Pickles: Ginger pickle processing is simple and can be done at cooperative level. No additivities are n Sauces e.g. coming sauces, barbeque sauces, fish sauces, needed for preservation and ginger pickled are easily chili sauces, salad dressings, pickled products. consumed in the domestic and Indian market. n Confectionery e.g. chocolate tables, boxed chocolate n Ginger Candy: The Asian ginger market is growing. assortments, boiled sweets, pastilles, chews. Ginger candy is popular in Asian countries such as n Bakery e.g. cakes, pastries, baked goods, dessert mixes. Japan and Bangladesh. Ginger candy is also consumed in domestic market. n Biscuits e.g. plain biscuits, filled biscuits, cookies, snack bars, dried fruit. n Ginger essential oils/oleoresins: Both have many applications in food, drink, fragrance (natural n Hot drinks e.g. tea (black or green), natural health cosmetics) and herbal/traditional medicines (herbal) teas. (aromatherapy). Although more research was needed n Cold drinks e.g. sports/energy drinks, natural health to find out the suitable ginger variety for ginger oil juices, ready to drink teas. distillation. Fragrance segment The study gives recommendations to comply with the n Beauty and Personal care products e.g. hair care, skin strict market access requirements and develop options care, bath and shower gels, aftershave, perfumes. to access the four selected markets. This was done by analysing retail sales developments in three key market Herbal / Traditional segment segments - flavour, fragrance, herbal/traditional – and n Ayurvedic medicines. further analysing the main product categories in the n Natural medicines (topical analgesics, digestive processing industries where ginger is likely to be used. remedies, cough-cold-allergy, dietary supplements). The key market segments are divides into the following categories and products: n Aromatherapy. ii GINGER AND GINGER PRODUCTS FROM NEPAL For each of these product categories it is indicated in Eurostat), research databases, market reports - including which form ginger is mostly used which could be for from Euromonitor, Samarth, ANSAB, FAO, trade press, example in fresh, dried, crystalized form or in the form of trade associations/web portals, company information ginger oil. sources, governmental and non-governmental trade information as well as other information via the internet. The study also provides relevance on: n How to enter these markets with the best Field research was done in Abu Dhabi through opportunities for the selected ginger products from discussions with various wholesalers at the Aka Al Mina Nepal. Fruit & Vegetable market and several store checks in November 2016. n How to comply with market access requirements in the UAE, Japan, India and Bangladesh, recommend how to enter these markets by indicating main Limitations importing companies in each country. The scope of this study is primarily on the development and potential in exports markets in terms of significance n Giving the best recommendations for a Global market (market size), key segments and market opportunities. access strategy for Nepali companies and suggest how to The current situation of the ginger sector in Nepal is move forward to reinforce the ginger sector in Nepal in reviewed and technical issues like the best processing a sustainable manner with the support of governmental machines (recommended capacity) for Nepalese institutions, trade associations and NGOs. companies or details about policy making were not requested in the ToR. However, some recommendations Main topics in the strategic part of the study, covered in are given in Chapter 6.4.2 and 6.5.1. Chapter 6, which were discussed during the validation workshop on 27 August 2017 with the stakeholders include: n Current situation of the Ginger sector in Nepal. The market study gives n Choosing the best segments/product categories recommendations to comply markets for Nepali exporters based on retail sales development for 2021 for each of these categories and with the strict market access the possible ginger products that can be processed and exported in the simplest way for Nepalese companies. requirements and develop n How to comply with market access requirements (legislative, quality and voluntary). options to access the UAE, n How to jointly apply for Organic Labelling (e.g. by Indian, Japanese and organic growers group). n Improving the competitiveness of Nepal in the ginger Bangladeshi markets. This was export markets. n Recommended strategy to make the ginger sector in done by analysing retail sales Nepal export-ready to the benefits of all actors in the value chain to encourage collaboration on all levels developments in three key and to attract foreign companies for sustainable sourcing to gain more security in supplies, fair prices market segments - flavour, and know-how sharing between farmers, cooperatives,
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