Nepal has developed a strong niche in the global felt products market, producing a wide range of handmade goods for homes, pets, and lifestyle markets. Nepalese felt products are known for their craftsmanship, versatility, and handmade production, with the industry providing significant employment opportunities for women. Much of the sector operates under fair-trade principles, supporting ethical production and sustainable livelihoods.

Popular felt exports from Nepal include cat caves and beds, dryer balls, garlands, Christmas ornaments, keychains, hats, slippers, toys, cushions, mats, rugs, and other home décor products. These products are typically made from soft merino wool sourced from New Zealand and are crafted into a variety of shapes, colors, and designs to meet international market requirements.

Kathmandu serves as the central hub for Nepal’s felt industry, with a significant number of manufacturers and exporters based in Lalitpur. Nepalese felt products are exported primarily to the United States, European Union markets, Japan, and other international destinations.

The sector’s focus on handmade production, women’s participation, ethical manufacturing, and fair-trade practices gives Nepalese felt products a distinctive position in the global market. Exporters and manufacturers may also meet internationally recognized requirements and certifications, including OEKO-TEX, ISO 9001:2015, and fair-trade standards, depending on the individual producer and product.