How Can Beetroot Powder Unlock a Fortune in Nepali Agribusiness?
Data Insight

In recent years, the expansion of beet farming (chukandar) in Nepal’s agricultural sector has opened up new possibilities. However, real change is not achieved merely by increasing production - it becomes possible through processing and value addition.

In this context, beet powder is not just a product; it is a new phase in agribusiness.

In today’s global economy, processed products hold much greater value than raw produce. Selling beets is one option, but converting beets into powder is a process of building a brand and an industry. In other words, this approach can offer farmers price stability, ease of transportation, and vast potential in international markets.​

Demand for Beet Powder and Nepal’s Opportunity

The demand for beet powder exists worldwide. In 2025, its market size was approximately $450–520 million. However, by 2030–2035, the market is projected to reach from $640 million to over $830 million, with an annual growth rate (CAGR) of 5–6%.

Even more interestingly, more than 59% of the world's food companies have incorporated beet powder into their products. Likewise, over 34% of natural food color usage is based on beetroot.

These figures convey a single message: this is not a temporary trend, but rather a globally established industry.

A country like Nepal, which has the potential for organic production, can enter the international supply chain by seizing this opportunity.

Particulars
2025 (Estimated)
2030–2035 (Proj.)
Annual Growth Rate 
Global Market Size
$450–520 million
$640–830 million+
~5–6%
Usage of Beetroot in Food Companies
More than 59%
-
-
Share of Beetroot in Natural Colors
More than 34%
-
-
Source:  Custom Market Insights; Market Reports World; Zion Market Research 
What this means for Nepali farmers and entrepreneurs: 
  • Beet powder should not be viewed as an experimental project, but rather as a long-term, export-oriented business model. 
  • With the growing demand from food companies and for natural colors, Nepal can sell in the international market at a premium price if it emphasizes organic certification and quality production. 
  • Even those who establish a processing unit on a small scale right now can secure their place in the future global market.
Business Insight:  The bottom line is that this product is not a "trend"—it is an "industry in the making.

Beet Powder:  18 Times More Value than Raw Vegetables

There are three clear reasons for the growing global demand for beet powder: health awareness (nitrates improve blood circulation, athletic performance, and heart health); the "plant-based" and "clean label" trends (increasing use of beet-based natural color as an alternative to artificial colors); and its versatility (68% in food and beverages, plus supplements, cosmetics, and sports nutrition).

Source: Custom Market InsightsMarket Reports WorldZion Market Research 

This opportunity is even greater for Nepal because raw beetroot is abundantly available locally, much of the production is naturally "low-chemical" or "organic-like," allowing it to command a premium price in the international market. Additionally, the investment threshold is very low, as one can start with a solar dryer, a small grinder, and packaging.

This is where value addition comes into play: fresh beetroot sells for approximately NPR 50 per kg (Source:  Setopati 30/03/2025), while 1 kg of powder made from 8–10 kg of beets is worth NPR 800–1500 (Source: Daraz), meaning it can generate 3–5 times more value than the raw product.​

Particulars
Fresh Beetroot
Beet Powder
Average Selling Price (per kg)
≈ NPR 50
NPR 800–1500 (Nepal) / NPR 2000–3000 (International)
Value Addition Compared to Raw Material
Baseline
3–5 times (Nepal), up to 16 times (Export)
Production Cost (per kg of powder)
NPR 350 (NPR 200 for fresh beets + NPR 150 for processing)
Net Profit (Nepal market)
NPR 450–850 per kg
Monthly Profit (100 kg of powder)
NPR 45,000–85,000
Major Areas of Use (Global)
Vegetable, juice
Food/Beverages (68%), supplements, cosmetics, sports nutrition
Main Drivers of Growing Demand
Health awareness, plant-based trends, and demand for natural colors
The Bottom Line: Processing creates 3–16 times more value than raw production. 
  • Small investment, big profit: You can start at a household level with a solar dryer + grinder + packaging.
  • Leveraging the health trend: Global demand for "clean label" and "plant-based" products is rising, and because Nepali produce is naturally "organic-like," there is significant potential to command premium prices.
  • Both local use and export are possible: There is demand within Nepal from smoothie bars, bakeries, and hotels, while internationally, the door is open for exports to functional food, natural color, and sports nutrition companies.

How is Beet Powder Made? (Potential for a Small-Scale Industry)

In the Nepali context, the process of making beet powder is simple, low-cost, and feasible at the local level. Recently, farmer Chandra Prasad Adhikari from Chitwan has demonstrated that the quality of beetroot produced in Nepal is acceptable internationally by exporting fresh beetroot to Germany (Source: Setopati 30/03/2025).

While he sold fresh beetroot at NPR 50 per kg, if he had turned that same beetroot into powder and exported it, he could have earned NPR 2000–3000 per kg (approximately 40 times more).   Thus, for a small-scale industry, the following four steps are necessary:

Step 1:  Washing & Slicing:  Thoroughly wash the fresh beetroot. With or without the peel, cut it into thin slices about 1 mm thick.  In the Nepali context: Ensure access to clean water and use stainless steel utensils.

Step 2:  Drying:  Dry the sliced beetroot. This is the most important step. The following methods can be used:  

  • ​Solar dryer: Cheap and effective for Nepal, no electricity required
  • Oven drying: Can be used on a small scale; a temperature of around 60°C works well
  • Freeze drying: Suitable for high quality but higher cost. 

Studies have shown that both sun drying and oven drying can preserve nutrients. Drying may take about 7 hours.

Step 3:  Grinding/Milling: ​ Grind the fully dried beetroot in a mill or grinder to make a fine powder. In the Nepali context, A small-capacity electric grinder or hand mill can be used.

Step 4:  Sieving and Packaging:   Sieve the ground powder. Keep only the uniform powder. Use a 60–100 mesh sieve. Pack in airtight pouches or bags and seal. This will keep it for up to 24 months.

Production Ratio: Approximately 5 kg of fresh beetroot yields 1 kg of powder. This reduces transportation costs by up to 80%.

Source:  Jeshvaghani et al. (2024; BossGoo; Food Research Institute; Mubajje et al. (2024)

Business Insight:  The technology for making powder is not expensive, yet it increases a farmer's income by up to 40 times and reduces transportation costs by 80%.

Beet Powder Business:  Key Risks and Mitigation Measures

Beet powder production, like any other agribusiness, comes with various risks. However, with proper planning and management, these risks can be minimized.  

Raw Material (Fresh Beetroot) Quality Risk: Low-quality, bruised, or high-moisture beetroot affects the color, taste, and nutritional value of the powder. 

  • Use only high-yielding varieties such as Action, Madhur, or Ruby Queen.
  • Harvest at the right time (ripe but firm).
  • Ensure consistency by purchasing only from farmer groups.

Mold and Bacteria Risk During Drying: If the beetroot is not fully dried (moisture > 10%), mold can develop in the powder, harming human health and rendering the product unusable.

  • Use a moisture meter to ensure thorough drying (moisture < 10%).
  • Maintain proper air circulation when using a solar dryer.
  • When oven drying, keep the temperature above 60°C for 6–8 hours.
  • Allow to cool after drying and package immediately in airtight containers.​

Cross-Contamination Risk: The powder can become contaminated with dust, soil, insects, or other foreign matter.

  • Wash beetroot 2–3 times with clean water before drying.
  • Use stainless steel utensils, plastic cutting boards, and clean cloths.
  • Clean and dry the grinder thoroughly after each use.
  • Keep the packaging area clean and dry.​

Incorrect Packaging and Storage Risk: Air, light, and moisture can cause the powder to fade, lose aroma, and reduce nutritional value. 

  • Use airtight, light-proof pouches (aluminum foil-based).
  • Store only in a dry, cool, and dark place (15–20°C).
  • Control moisture by placing silica gel packets inside.
  • Label the product with a shelf life of 24 months.​

Lack of Quality Certification in the Market Risk: In international markets, powder without organic certification gets lower prices or may not sell at all.

  • Join local organic groups (e.g., Chitwan District Organic Association).
  • Obtain certification collectively under the government's organic mission program.
  • In the initial stage, brand locally as "Organic-like" or "Chemical-free," then pursue formal certification later.

​Price Volatility and Market Access Risk:  A sudden oversupply can reduce prices, or export shipping costs can become expensive. 

  • Do not rely on a single market; establish contacts with local supermarkets, bakeries, smoothie bars, and hotels.
  • When exporting, farmer groups or cooperatives can combine large quantities to reduce shipping costs.

Lack of Equipment or Expensive Maintenance Risk:  The unavailability or breakdown of solar dryers, grinders, or packaging machines can halt production.

  • Keep 2–3 small tools (an extra blade, spare parts) from the beginning.
  • Farmer groups can create a shared equipment fund.
  • Make a maintenance agreement with a local mechanic or electrician.
Three concrete measures:
  • Control moisture: Buy a portable moisture meter for NPR 2000–3000. Check after drying each batch to ensure moisture is below 10%.
  • Get certified as a group: Certification alone is expensive and complex. Get collective organic certification with 10–20 farmers. This reduces the cost by up to 70%.
  • Start small: First, practice making powder from 10–20 kg of fresh beetroot. The risk will be low, and it will be easier to learn the technique.
Remember: Moldy powder is dangerous to health. Never compromise on quality. It takes 2–3 years to build a good name, but one mistake is enough to ruin it.

Final Conclusion: Is There a Future in the Beet Powder Business?

The beet powder business in Nepal is an area with immense potential. Low investment, high value addition, global demand, and Nepal's geographic and organic advantages make it profitable in the long term. 

  • For Farmers: Start with experimental cultivation on 1–2 ropani of land. Join a local organic association for organic certification. Obtain certified seeds of the Action or Madhur variety from a nearby Agriculture Knowledge Center.  Instead of selling 100% of the produce fresh, turn only 20–30% into powder, and pool resources to buy a shared solar dryer as a group.
  • For Entrepreneurs: Explore the potential for small-scale processing units for beetroot powder, juice, or natural color. Create a brand called "Organic Beetroot Powder – Produced in Nepal" and use Amazon, Daraz, or direct export channels. Adopt a long-term purchase agreement model with farmer groups.
  • For InvestorsLook into investment opportunities in cold storage, processing equipment (dryers, grinders, packaging machines), or export infrastructure. Providing solar dryers to small farmer groups (under CSR programs) is also a good option for long-term investment.

To make this business successful, certain conditions must be met: adopting organic farming, forming group-based institutional structures (cooperatives/farmer groups), obtaining international-level organic certification, and ensuring market access. When all these conditions are in place, the beet powder business can become a highly profitable venture for Nepali farmers.

You may also like:  Not Interested in Powder, Then Think of Beetroot
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DHN Admin 4 April, 2026
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