Nepal has a steadily growing population, which creates a larger consumer base for FMCG products. Moreover, increasing urbanization is leading to changing consumer lifestyles and preferences, presenting opportunities for businesses to introduce new products and cater to evolving needs. With increasing remittances from abroad, disposable income levels are gradually rising in Nepal. It provides trading entities with the opportunity to tap into the growing middle-class segment and introduce premium and value-added products. The growth of modern retail formats such as supermarkets and convenience stores is gaining momentum in Nepal which offer better visibility and shelf space for FMCG products, facilitating their distribution and increasing accessibility for consumers. A diverse market with numerous ethnic groups and regional variations in preferences and consumption patterns forms a core of market fragmentation. This market fragmentation makes it challenging for FMCG entities to tailor their products and marketing strategies to suit the specific needs of different regions.