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Asked: February 26, 20252025-02-26T08:36:37+07:00 2025-02-26T08:36:37+07:00In: Business Policies, Fintech, Make Money, Technology

Why Should Businesses and Investors Pay Attention to Cambodia’s E-Commerce Market?

Cambodia’s E-Commerce Market Trends in 2024: A Booming Sector for Investors!

Cambodia’s e-commerce market has witnessed remarkable growth, reaching a market value of approximately $1.12 billion in 2024. This rapid expansion is fueled by several key factors, including increased digital payment adoption, a tech-savvy youth population, widespread smartphone penetration, and strong government support. As of January 2024, Cambodia’s internet penetration reached 56.7%, with 9.66 million internet users, while social media usage stood at 68.4% of the population, totaling 11.65 million users. This reflects an increase of 1.2 million social media users, or 11.5%, compared to the previous year. Notably, platforms like TikTok experienced significant growth, with 9.96 million users aged 18 and above, covering nearly 90% of the adult population. Instagram also saw a 5.7% increase, reaching 1.85 million users, accounting for 10.9% of the total population, according to Datareportal.

According to the 2024 E-Commerce Report published by the Ministry of Commerce, this momentum is expected to continue, with the market projected to reach $1.81 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.98%.

Minister of Commerce Cham Nimul emphasized that Cambodia’s e-commerce growth is part of a broader digital transformation strategy. The government’s commitment to fostering digital trade and strengthening institutional support has paved the way for a more structured and sustainable expansion of the sector.

Key Trends in Cambodia’s E-Commerce Market
Key Trends in Cambodia’s E-Commerce Market

With the rapid evolution of online shopping habits and digital transactions, Cambodia’s e-commerce sector presents lucrative opportunities for investors and businesses looking to tap into this emerging market.

Key Trends in Cambodia’s E-Commerce Market

1. Increased Digital Payment Adoption

One of the driving forces behind Cambodia’s e-commerce growth is the widespread adoption of digital payments. Mobile payment solutions such as ABA Pay, Wing, Pi Pay, and Bakong (the National Bank of Cambodia’s blockchain-based payment system) have significantly improved transaction efficiency and consumer confidence in online shopping.

Why?

  • Cashless transactions offer convenience and security.
  • Mobile wallets provide easy access for unbanked and underbanked populations.
  • Government initiatives promote financial inclusion and digital literacy.

2. Rising Internet and Smartphone Penetration

Cambodia’s internet penetration rate continues to grow, with an estimated 70% of the population now having access to the internet. Smartphone penetration has also surged, particularly among younger demographics, making mobile commerce (m-commerce) a dominant force in the industry.

Why?

  • Affordable smartphones make online shopping accessible to a larger audience.
  • Social commerce (shopping via Facebook, TikTok, and Instagram) thrives in Cambodia’s digital landscape.
  • E-commerce platforms are optimized for mobile-first experiences.

3. Expansion of E-Commerce Platforms and Marketplaces

Several local and regional e-commerce platforms are making significant strides in Cambodia, including Tinh Tinh, Smile Shop, and global players like Shopee and Lazada. These platforms have introduced competitive pricing, efficient logistics, and diverse product offerings, making online shopping more attractive.

Why?

  • Marketplace competition leads to better deals and services for consumers.
  • More businesses are adopting omnichannel retail strategies.
  • Cross-border e-commerce is gaining traction, allowing Cambodian sellers to reach international markets.

4. Government Support and Regulatory Developments

The Cambodian government has been proactive in supporting e-commerce growth through policies such as the Digital Economy and Society Policy Framework 2021-2035 and the implementation of the Pentagonal Strategy Phase I. The E-Commerce Law has also provided a legal foundation for online businesses to operate securely.

Why?

  • Clear regulations encourage investment and business expansion.
  • Tax incentives and simplified registration processes make it easier for SMEs to go digital.
  • Strengthening cybersecurity ensures consumer trust in online transactions.

5. Shifting Consumer Behavior and Post-Pandemic Adaptation

Consumer behavior has evolved significantly post-pandemic, with a stronger preference for online shopping, home delivery services, and digital entertainment subscriptions. Businesses have adapted by offering enhanced user experiences, faster shipping, and flexible payment options.

Why?

  • The COVID-19 pandemic accelerated digital transformation in retail and service sectors.
  • Younger consumers expect seamless online-to-offline (O2O) shopping experiences.
  • Growth in digital marketing and influencer-driven commerce drives online purchases.

6. Logistics and Last-Mile Delivery Improvements

Efficient logistics and last-mile delivery services are critical for sustaining e-commerce growth. Companies like J&T Express, Kerry Express, and local delivery startups have enhanced their networks to provide faster and more reliable deliveries nationwide.

Why?

  • Increased investment in logistics infrastructure supports e-commerce scalability.
  • Same-day and next-day delivery options improve customer satisfaction.
  • Partnerships between online retailers and third-party logistics (3PL) companies optimize distribution channels.

7. Emergence of Niche Markets and Specialized E-Commerce Sectors

Beyond traditional retail, niche e-commerce markets are gaining popularity in Cambodia. These include online grocery shopping, health and wellness products, sustainable goods, and second-hand marketplaces.

Why?

  • Consumers are seeking unique and high-quality products online.
  • Growth in eco-conscious shopping habits promotes sustainable e-commerce.
  • Subscription-based services and personalized shopping experiences increase retention rates.

A Promising Future for Cambodia’s E-Commerce Market

Cambodia’s e-commerce sector is poised for continued expansion, driven by digital payment innovations, government support, evolving consumer behavior, and improved logistics. For investors and businesses, this growth presents exciting opportunities to tap into a rapidly developing market with increasing digital adoption.

As Cambodia strengthens its digital trade ecosystem, the potential for cross-border e-commerce, fintech innovation, and emerging business models will only grow. The key to success lies in understanding market trends, investing in scalable solutions, and staying ahead of technological advancements.

What are your thoughts on Cambodia’s e-commerce growth? Are you considering investing or starting a business in this market? Share your insights in the comments below and spread this content with others who might find it valuable!

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