How Nepal is emerging as a specialty coffee origin
Nepal is one of the most compelling origins in the specialty coffee industry. While the landlocked nation may not yet command the same recognition as more established producing countries, such as Ethiopia or Colombia, its unique terroir and rapid evolution make it an increasingly attractive proposition for roasters.
Although its coffee sector is comparatively young, Nepal offers exceptional growing conditions, dedicated producers, and a steadfast focus on producing specialty-grade coffee exclusively.
As the global coffee market becomes increasingly competitive, roasters are looking for points of differentiation, and Nepal is emerging as a unique origin that could meet this demand.
I spoke with Dhanvie Dugar at Himalaya Coffee Company to learn more.
You may also like our article on whether Nepal will produce more specialty coffee in the future.
Why is Nepal a unique coffee origin?
Nepal’s geography creates an almost ideal environment for specialty coffee production. Nestled between China and India, and home to Mount Everest and the Himalayas, the country’s diverse microclimates, ranging from subtropical lowlands to alpine highlands, provide optimal conditions for arabica cultivation. Most of Nepal’s coffee farms are situated between 1,000 and 2,100 meters above sea level, spanning more than 15 districts, including Gulmi, Arghakhanchi, Palpa, Syangja, and Lalitpur.
The country’s coffee production is concentrated in several key growing regions, each contributing distinct characteristics to the final cup profile. The western districts of Gulmi and Arghakhanchi have emerged as significant production areas, known for their consistent quality and favourable growing conditions. Meanwhile, eastern regions like Ilam and Panchthar are gaining recognition for their unique flavour profiles, influenced by the area’s proximity to the country’s famous tea-growing regions.
Producers across various districts employ a range of organic farming practices, catering to growing consumer demand and due diligence standards, while also supporting efforts to promote biodiversity and enhance coffee quality. Moreover, Nepali coffee has no links to deforestation in its supply chains, aligning with the landmark European Union Deforestation Regulation, which is set to come into effect in December 2025.
Although the National Tea & Coffee Development Board estimates there are 42 coffee-growing districts in Nepal, with a potential plantation area of almost 1.2 million ha, annual production remains relatively low.
“Nepali coffee is rare; our national production is only 500 to 600 tonnes annually,” says Dhanvie Dugar, the founder of Himalaya Coffee Company, a brand of KL Dugar Group, a fourth-generation family business that works with cooperatives and smallholder producers across more than 15 districts in Nepal to source specialty-grade arabica.
A focus on quality
With relatively modest annual production volumes, Nepali producers can arguably pay greater attention to detail and quality control throughout the supply chain.
“Every lot has a minimum cup score of 80 points,” Dhanvie says. “Grown under natural shade, without deforestation, on terraced hillsides, the high altitudes and de facto organic practices allow coffee to mature slowly, increasing bean density and flavour complexity.
“Because Nepal’s coffee industry is relatively young, our soils remain nutrient-rich and unspoiled,” she adds. “Our coffee undergoes stringent moisture and cupping tests, is stored in climate-controlled conditions, and is packed in Ecotact and jute bags to preserve freshness.”
The predominant varieties grown in Nepal include Bourbon, Typica, and Caturra, with many farms cultivating heirloom varieties that have adapted uniquely to local conditions over several decades.
Processing methods vary by region and producer, with washed processing being the most common, although natural, honey, and anaerobic fermentation processing methods are also increasingly prominent as producers experiment with different techniques to enhance flavour complexity.
More roasters are looking for a point of differentiation
Today’s global coffee industry presents unprecedented challenges for roasters and cafés. Market saturation, increasing competition, and rising operational costs have created an environment where differentiation is not just advantageous – it’s essential for survival.
Consumers are increasingly sophisticated, seeking unique flavour experiences and authentic stories behind their coffee purchases. In this context, Nepal represents an opportunity for roasters to offer something truly distinctive that attracts new customers and retains loyal ones.
The demand for unique origins has intensified as specialty coffee culture has proliferated. Roasters who primarily rely on traditional origins, such as Guatemala or Brazil, are discovering that these more established markets can offer diminishing returns in terms of differentiation.
“Our coffee tells a story; it’s rare, traceable, and deeply human,” Dhanvie says. “With limited production, each micro lot carries the touch of the farmer who picked it and the region it came from.”
Nepali coffees typically exhibit bright acidity, medium body, and complex flavour notes ranging from floral and citrus to chocolate and spice, depending on the specific region and processing method. The altitude and climate conditions in Nepal’s growing regions also contribute to dense beans that perform well across various roast profiles.
“In a saturated market, Nepali coffee offers roasters a chance to stand out through quality, ethics, and exclusivity,” Dhanvie adds. “We also work closely with partners, offering personalised sourcing, flexibility, and full traceability for both small and large businesses.”
Improving market access
Accessing high-quality Nepali coffee has historically presented significant challenges for international roasters. The country’s mountainous terrain, limited infrastructure, and relative newness to the global coffee trade have created barriers to entry for smaller roasters in particular.
Ultimately, working with trusted partners with extensive knowledge of the country’s coffee sector, such as Himalaya Coffee Company, is the most effective way to source Nepali coffee.
“Our mission is to connect the world with Nepal’s untapped potential,” says Dhanvie. “Our logistics team ensures seamless shipping, whether by air or sea. We also host farm visits and tastings to help roasters experience the origin firsthand.”
How the Nepali coffee sector could continue to evolve
Nepal’s specialty coffee sector stands at an inflexion point. The country’s coffee industry has demonstrated remarkable growth and sophistication in a relatively short timeframe. The next decade promises to be transformative as infrastructure development continues, international awareness grows, and production techniques evolve.
As sustainability concerns grow and consumers become more conscious of coffee’s environmental and social impact, Nepal’s predominantly smallholder agriculture and organic coffee production methods align with market trends. Many Nepali coffee farms operate within existing forest ecosystems, contributing to biodiversity conservation while producing exceptional coffee.
Current production levels represent just a fraction of Nepal’s potential capacity. Conservative estimates suggest that suitable land for coffee cultivation could support significantly higher production volumes while maintaining quality standards. However, the industry’s leaders, including established players like Himalaya Coffee Company, are approaching expansion thoughtfully, prioritising sustainable growth over rapid scaling.
“Coffee is gaining momentum in Nepal. With increased awareness and education, more farmers are planting arabica,” Dhanvie explains. “We are investing in advanced processing, fermentation experiments, and training programmes to improve cup scores further.
“Over the next decade, we envision Nepal becoming a boutique but high-impact origin, known globally for its quality and ethical cultivation,” she adds.
Strengthening infrastructure to drive growth
Investment in processing infrastructure represents one of the most significant opportunities for the development of the Nepali coffee sector. While many producers currently rely on washing stations and traditional drying methods, upgrades to processing equipment and techniques could unlock new flavour profiles and improve consistency.
The introduction of controlled fermentation and improved storage facilities would enable producers to experiment with different processing methods and extend the harvest season.
The development of Nepal’s internal coffee culture also promises to drive sector growth. As domestic consumption increases and local coffee appreciation grows, it lays the foundation for continued investment in quality and infrastructure. Urban centres like Kathmandu and Pokhara are experiencing rapid growth in specialty coffee shops and roasteries, creating local markets for premium Nepali coffee and fostering knowledge exchange within the industry.
International market recognition continues to expand as more roasters discover Nepali coffee and share their experiences with customers. Awards and recognition at international competitions have begun to establish Nepal’s reputation for quality, creating positive feedback loops that encourage continued investment in production standards.
The country’s participation in global coffee events and trade shows has increased significantly, building awareness and establishing trade relationships. Himalaya Coffee Company, for example, recently exhibited at the 2025 Specialty Coffee Expo in Houston and MICE2025.
Supply chain actors will play a key role
The evolution of Nepal’s coffee sector also depends heavily on continued investment in farmer education and technical support. Organisations and companies play crucial roles in knowledge transfer, helping smallholder farmers adopt best practices for cultivation, harvesting, and post-harvest processing. These educational initiatives not only enhance coffee quality but also increase farmer incomes and encourage ongoing participation in the specialty coffee market.
“Nepal’s coffee sector is emerging, and infrastructure is still developing. Working with a trusted partner ensures reliability, consistency, and peace of mind,” Dhanvie says. “We manage every step of the supply chain, from cultivation to export, with the backing of KL Dugar Group’s 131-year legacy. This gives us the operational expertise and industry experience needed to deliver specialty coffee that meets global expectations.”
Looking ahead, Nepal’s coffee industry appears poised for sustained growth driven by quality rather than volume. The combination of exceptional terroir, dedicated producers, and growing international recognition lays a solid foundation for long-term success. As infrastructure develops and market awareness grows, Nepal has the potential to establish itself as a premium specialty coffee origin.
The story of specialty coffee in Nepal is still being written, but the early chapters suggest a narrative of quality, sustainability, and authentic connection to place. For roasters seeking to differentiate their offerings and provide customers with genuinely unique coffee experiences, Nepal represents an opportunity to be part of an emerging origin’s journey.
As the global coffee market continues to evolve, Nepal’s commitment to specialty-grade production, sustainable practices, and authentic storytelling positions it for continued growth and recognition. The country’s coffee sector may be young, but its potential is vast, promising exciting developments for producers, roasters, and coffee enthusiasts alike in the years to come.
Enjoyed this? Then read our article on why emerging markets show promise for specialty coffee in a period of price uncertainty.
Photo credits: Rajyavardhan Dugar, Prakash Pandey
Perfect Daily Grind
Please note: Himalaya Coffee Company is a sponsor of Perfect Daily Grind.
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