Wine - Cambodia

The Wine market in Cambodia has been experiencing significant growth in recent years, driven by changing consumer preferences and local special circumstances.

Customer preferences: Cambodian consumers are increasingly embracing wine as a sophisticated and trendy beverage choice. Wine is seen as a symbol of status and sophistication, appealing to the growing middle class in the country. As Cambodians become more exposed to international trends and lifestyles, they are developing a taste for wine and incorporating it into their social gatherings and celebrations.

Trends in the market: One of the key trends in the Cambodian wine market is the growing demand for imported wines. Cambodian consumers are seeking out wines from renowned wine-producing regions such as France, Italy, and Australia. This trend is driven by the perception that imported wines are of higher quality and offer a wider range of flavors and styles. As a result, there has been an increase in the availability of imported wines in Cambodian supermarkets, restaurants, and bars. Another trend in the market is the rise of wine appreciation and education. Wine tastings, pairing events, and wine clubs are becoming more popular in Cambodia, providing consumers with opportunities to learn about different wine varieties and styles. This trend is fueled by the desire to gain knowledge and expertise in wine selection and consumption, further driving the demand for wine in the country.

Local special circumstances: Cambodia's tourism industry is a significant driver of the wine market. The country has experienced a steady increase in international tourists, particularly from countries with a strong wine culture, such as France and China. These tourists bring with them a demand for wine, both in hotels and restaurants, as well as in duty-free shops. The presence of international tourists also contributes to the exposure and awareness of wine among local consumers.

Underlying macroeconomic factors: Cambodia's growing economy and rising disposable incomes are key macroeconomic factors driving the growth of the wine market. As the country's middle class expands, more consumers have the purchasing power to afford wine and indulge in premium alcoholic beverages. Additionally, the increasing urbanization and Westernization of Cambodian cities have led to a shift in consumer preferences towards more sophisticated and international products, including wine. In conclusion, the Wine market in Cambodia is experiencing growth due to changing consumer preferences, the rise of wine appreciation and education, the influence of tourism, and the country's economic development. As Cambodian consumers continue to embrace wine as a symbol of status and sophistication, the market is expected to further expand in the coming years.

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.