Alcoholic Drinks - Cambodia

The Alcoholic Drinks market in Cambodia has experienced significant growth in recent years.

Customer preferences: Cambodian consumers have shown a growing interest in alcoholic drinks, particularly beer and spirits. This can be attributed to several factors, including changing lifestyles, increased disposable income, and a growing young population. Beer is the most popular alcoholic beverage in Cambodia, with a preference for both local and international brands. Spirits, such as whiskey and vodka, are also gaining popularity, especially among the younger generation.

Trends in the market: One of the key trends in the Cambodian alcoholic drinks market is the rise of craft beer. Craft breweries have emerged in the country, offering a wide range of unique and flavorful beers. This trend is driven by the growing demand for premium and high-quality products among consumers. Additionally, there has been an increasing interest in imported alcoholic beverages, as consumers seek new and exotic flavors. Another trend in the market is the growing popularity of cocktail culture. Cambodians are increasingly embracing the art of mixology and experimenting with different cocktail recipes. This trend is fueled by the rise of trendy bars and lounges in urban areas, where consumers can enjoy a wide selection of cocktails made with both local and imported spirits.

Local special circumstances: Cambodia has a vibrant nightlife scene, particularly in cities like Phnom Penh and Siem Reap. This has contributed to the growth of the alcoholic drinks market, as consumers seek to socialize and unwind in bars and nightclubs. Additionally, the country has a strong tourism industry, attracting a large number of international visitors who contribute to the demand for alcoholic beverages.

Underlying macroeconomic factors: The Cambodian economy has been growing steadily in recent years, with a rising middle class and increasing disposable income. This has led to an expansion of the consumer market, with more people able to afford discretionary purchases like alcoholic drinks. Furthermore, the country has seen a rapid urbanization process, with more people moving to cities and adopting a more modern and cosmopolitan lifestyle. This has contributed to the changing consumer preferences and the demand for a wider variety of alcoholic beverages. In conclusion, the Alcoholic Drinks market in Cambodia is developing due to changing customer preferences, including a growing interest in craft beer and cocktails. The market is also influenced by local special circumstances, such as a vibrant nightlife scene and a strong tourism industry. The underlying macroeconomic factors, including economic growth and urbanization, further support the development of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.