Soft Drinks - Cambodia

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

Customer preferences: Cambodian consumers have been increasingly favoring healthier beverage options, such as low-sugar and natural drinks. This shift in preferences can be attributed to a growing awareness of the health risks associated with excessive sugar consumption and a desire for more natural and organic products. As a result, there has been a rising demand for bottled water, herbal teas, and fruit juices in the country.

Trends in the market: One of the key trends in the Soft Drinks market in Cambodia is the increasing popularity of functional beverages. These are drinks that offer additional health benefits beyond basic hydration. Functional beverages, such as energy drinks and sports drinks, have gained traction among Cambodian consumers who are looking for products that can provide an energy boost or aid in physical performance. Another trend in the market is the growing popularity of ready-to-drink (RTD) coffee and tea. Cambodians have developed a taste for these beverages, which offer convenience and a quick caffeine fix. RTD coffee and tea products have become increasingly available in convenience stores and supermarkets, catering to the busy lifestyles of urban consumers.

Local special circumstances: One of the factors contributing to the development of the Soft Drinks market in Cambodia is the country's young and growing population. With a median age of around 25 years, Cambodia has a large consumer base that is open to trying new products and experimenting with different flavors. This demographic factor has created opportunities for soft drink companies to introduce innovative and unique beverages to the market. Additionally, Cambodia's tourism industry has been flourishing in recent years. As more tourists visit the country, there is a growing demand for soft drinks to cater to their preferences. Tourists often seek familiar international brands or local beverages that offer a taste of Cambodian culture. This has led to the emergence of new soft drink brands and flavors tailored to the preferences of both locals and tourists.

Underlying macroeconomic factors: The Soft Drinks market in Cambodia has been supported by the country's strong economic growth and increasing disposable income. As Cambodia's economy continues to expand, consumers have more purchasing power to spend on non-essential items, including soft drinks. This has created a favorable environment for soft drink companies to invest in marketing and product development, driving further growth in the market. In conclusion, the Soft Drinks market in Cambodia is experiencing growth due to changing customer preferences towards healthier and functional beverages, as well as the country's young population, flourishing tourism industry, and favorable macroeconomic factors. Soft drink companies in Cambodia have the opportunity to capitalize on these trends and cater to the evolving tastes and preferences of Cambodian consumers.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.