Market Scenario

Cambodia beer market was valued at US$ 1,059.8 million in 2023 and is projected to surpass the market valuation of US$ 2,232.5 million by 2032 at a CAGR of 9.03% during the forecast period 2024–2032.

The beer industry in Cambodia is a dynamic and rapidly growing sector, reflecting the evolving tastes and economic development of the country. As of 2023, the industry is set to generate a remarkable $2.15 billion in revenue by 2032. This growth is a testament to the increasing popularity of beer among Cambodians, as evidenced by the average per capita beer consumption, which reached an all-time high of 57.3 liters in 2021. It has been found that the Cambodian beer market is not just thriving domestically but also making its mark internationally. In 2022, the country exported $1.12 million worth of beer, mainly to Singapore, China, France, the USA, and Vietnam. This export capacity showcases Cambodia's growing influence in the global market. Conversely, the nation's beer imports totaled $15.6 million in the same year, with Thailand, Vietnam, China, Japan, and Mexico being the primary sources. The import and export dynamics indicate a healthy balance in trade and a robust market demand.

Significantly, the beer market in Cambodia has evolved over the years, with a comprehensive analysis of market volume, value, and dynamics over the past five years revealing crucial insights. Factors influencing this development include market trends, challenges, and drivers, as well as retail price levels and their dynamics. This evolution is further underscored by the beer consumption reached 641 million liters in 2023 and is projected to keep growing at a CAGR of 6.49% in the years to come.

Dominating the Cambodian beer market landscape are major players like Cambrew, Heineken, and Carlsberg. Cambrew, particularly, leads the pack with its popular Angkor beer brand. This leadership is a reflection of the strategic positioning and brand recognition efforts by these companies. Additionally, the craft-beer segment in Cambodia has seen rapid expansion over the last decade. About 20 craft beer or cider producers are currently leading the market, with notable names including Prince Brewery, Hops, Cerevisia Craft Brewery, and Stone Head Brewery. Wherein, Prince Brewing, which has carved a niche for itself with a focus on high-quality products and unique branding. Their growth strategy involves significant investment in a 'long-life' bottling facility, emphasizing their commitment to quality and innovation. Their approach, targeting a more fashionable, avant-garde, and quality-conscious consumer, speaks to the changing preferences of the Cambodian beer market.

This dynamic market, poised for continuous growth, presents a plethora of opportunities for investors and businesses looking to tap into Southeast Asia's burgeoning beer industry. The blend of traditional brewing methods with modern, innovative approaches, along with the strategic positioning of major players, sets the stage for a vibrant and competitive market. With a forecast for continued expansion and diversification, the Cambodian beer industry is undoubtedly one to watch in the coming years. 

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Market Dynamics 

Driver: Growing International Influence is Driving Cambodia's Beer Industry

A key factor shaping the Cambodian beer industry is the increasing influence of international beer brands and their investment in the local market. This trend is significantly altering the beer landscape in Cambodia, bringing in new flavors, brewing techniques, and marketing strategies. One of the most significant impacts of this international influence is the introduction of diverse beer types and flavors. This variety caters to a broader range of consumer preferences, from traditional lagers to craft beers and specialty ales. The result is a more vibrant and dynamic beer market, with consumers having access to a wide array of choices.

The financial implications of this international presence are substantial. The Cambodian beer industry is expected to generate about $2.1 billion in revenue by 2032, demonstrating the economic significance of this sector. This influx of international brands is also impacting local brewing companies. They are now compelled to innovate and improve their products to compete effectively. This competition is beneficial for consumers, as it leads to better quality and more choices. Additionally, the per capita beer consumption reached an all-time high of 57.3 liters in 2022, reflecting the growing popularity of beer among the Cambodian populace.

Rising Health Consciousness: A New Trend in Cambodia's Beer Market

The rising trend of health consciousness is significantly shaping the Cambodian beer market, as consumers increasingly seek healthier beverage options. This trend is influencing both product development and consumer choices within the industry. The growing health awareness among consumers has led to a rise in demand for low-alcohol and non-alcoholic beers. This shift is a response to the global movement towards healthier lifestyles, with consumers becoming more mindful of their alcohol consumption. The average volume per person in the beer market is expected to be 24.29L in 2023, indicating a nuanced change in drinking habits.

In response to this trend, breweries in Cambodia are diversifying their product portfolios to include healthier beer options. These offerings cater to a segment of the population that is conscious about alcohol consumption but still wants to enjoy the social aspects of drinking beer. The health consciousness trend is also evident in the types of beers gaining popularity. There's a noticeable shift towards beers with natural ingredients, organic certification, and lower calorie counts. This trend aligns with the global movement towards sustainability and wellness.

Expanding Middle-Income Population: A Golden Opportunity for Cambodia's Beer Industry

As the country progresses towards achieving middle-income status by 2030, a substantial portion of its population is experiencing an increase in disposable income. This economic transition presents a fertile ground for the beer industry, particularly in terms of increased consumption and demand for diverse beer products. In 2015, the Cambodian beer market was valued at $500 million, a figure that is forecasted to more than quadrupole, reaching $2.1 billion by 2032​​. This impressive growth trajectory is partly fueled by the expanding middle-income demographic, which is becoming increasingly inclined towards lifestyle choices that include the consumption of alcoholic beverages like beer. This growth is not just in terms of revenue; the volume of the market is also expanding significantly. For instance, the non-alcoholic beer market in Cambodia is projected to grow by 5.92% from 2023 to 2032​. Therefore, it is indicative of a market that is not only expanding but also diversifying, catering to a wide range of tastes and preferences.

The increasing purchasing power of the middle-income population in Cambodia is a key driver of this growth. As more people find themselves with disposable income, the propensity to spend on leisure and luxury items, including beer, increases. This demographic shift is creating new opportunities for both local and international beer brands to innovate and expand their product offerings to cater to a more diverse and discerning consumer base.

Segmental Analysis 

By Type 

In the Cambodian beer market, the lager beer segment exhibits a remarkable dominance. In 2023, this segment generated an impressive revenue of $672.47 million, underscoring its popularity in the country. Lager beers, known for their crisp and refreshing taste, have resonated well with the Cambodian palate, contributing to their leading position in the market. This preference is deeply rooted in the cultural and climatic context of Cambodia, where the light and often less bitter taste of lagers complements the warm, tropical climate.

The lager beer segment is not just leading in revenue generation but is also projected to grow at the highest CAGR of 8.54% during the forecast period. This growth can be attributed to the increasing disposable income among Cambodian consumers, which has led to a higher propensity to explore different beer types, with lager being a preferred choice for many. Apart from this, the expansion of distribution channels and increased marketing efforts by key players in the beer industry have made lager beers more accessible and visible to consumers. Additionally, the evolving tastes of the younger demographic, who are often drawn to the less intense flavor profile of lager beers, contribute to the segment’s growth. The introduction of various lager beer varieties by major breweries, catering to a range of preferences from light to more hop-forward profiles, has further stimulated this segment's expansion.

By Packaging Type 

Based on the packaging type of Cambodia's beer market, the bottle segment takes the forefront. In 2023, it generated a substantial revenue of $476.20 million, making it the most preferred packaging type among consumers and breweries alike. The dominance of bottle packaging in the beer market is anchored in several key factors that align with consumer preferences and brewery practices. Bottle packaging, particularly glass bottles, has long been favored in the beer industry for its ability to preserve the quality and taste of beer. Glass bottles effectively protect the beer from oxygen and light, two factors that can significantly alter the flavor of beer. Moreover, the reusability and recyclability of glass bottles align with growing environmental consciousness among consumers, further enhancing their appeal.

The segment’s projected growth at a CAGR of 8.46% can be attributed to the increasing demand for premium beer products. Premium beers are often associated with glass bottles, which are perceived as offering a higher quality experience compared to cans or plastic containers. This perception has been reinforced by marketing strategies that position bottled beer as a premium choice. Furthermore, the aesthetic appeal of bottles, along with the opportunity for creative labeling and branding, makes them attractive to breweries looking to differentiate their products in a competitive market. The bottle's tactile experience and traditional opening ritual also add to its enduring popularity among beer enthusiasts.

By Brewery Type 

In Cambodia's beer market, the macro brewery segment commands a significant presence. In 2023, it generated a substantial revenue of $669.18 million, confirming its dominance in the industry. Macro breweries, typically characterized by their large-scale beer production and widespread distribution networks, have played a crucial role in shaping the beer landscape in Cambodia. Their ability to produce beer on a massive scale enables them to meet the high demand consistently, a factor critical in a market where beer is increasingly becoming a staple in social gatherings and celebrations. The segment is also projected to keep growing at a CAGR of 6.69% during the forecast period, which can be attributed to several factors. The increasing population and urbanization in Cambodia have led to a surge in demand for beer, which macro breweries are well-equipped to meet due to their large production capacities. Additionally, the growing middle-class population, with more disposable income, has contributed to the rising consumption of beer, thereby fueling the growth of macro breweries.

Macro breweries in Cambodia have also been successful in appealing to a wide consumer base through extensive marketing campaigns and wide distribution channels. By offering a range of products that cater to varying tastes and preferences, they have managed to maintain a strong market position. Moreover, the consistency in quality and flavor that macro breweries provide has helped in building consumer trust and loyalty, crucial factors in retaining market share in a competitive industry. The robust growth of macro breweries is also reflective of the global trend where these large-scale breweries are adapting to changing consumer preferences by diversifying their product offerings, including introducing craft-style and specialty beers. This adaptability is vital in ensuring their continued relevance and dominance in the Cambodian beer market.

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By Distribution Channel

The offline distribution channel remains a pillar of strength in Cambodia's beer market. In 2023, this segment generated a significant revenue of $589.82 million, a testament to its enduring relevance in the beer distribution landscape. The continued dominance of the offline segment is rooted in consumer behavior and the traditional retail ecosystem in Cambodia. Offline channels, including supermarkets, liquor stores, bars, and restaurants, offer consumers the advantage of tangible product experiences. The ability to physically assess, compare, and immediately purchase beer fosters trust and satisfaction among consumers. Additionally, the social experience associated with purchasing beer from bars and restaurants contributes significantly to the segment's revenue.

Despite the growing digitalization, the offline segment's projected dominance across the Cambodia beer market can be attributed to several factors. The cultural preference for in-person shopping experiences, especially in the context of alcoholic beverages, plays a crucial role. Moreover, the immediacy of purchasing and consuming beer in social settings like bars and restaurants aligns with traditional consumption patterns. 

On the other hand, the online segment, though smaller in revenue generation, is projected to grow at the highest CAGR of 8.02% during the forecast period. This growth is driven by the increasing penetration of internet and smartphone usage, the convenience of home delivery, and the expanding reach of e-commerce platforms. The online segment's growth indicates a gradual shift in consumer behavior, with more people embracing digital platforms for their convenience and variety.

Top Players in Cambodia Beer Market 

• Anheuser-Busch InBev
• Carlsberg Breweries A/S
• Heineken International B.V.
• Khmer Beverages
• Molson Coors Beverage Company
• The Boston Beer Company Inc.
• The Brewerkz Company
• Cambrew Ltd.
• Vattanac Brewery
• Other Prominent players

Market Segmentation Overview:

By Type

• Lager
• Ale
• Stout
• Wheat
• Others

By Packaging Type

• Bottle
• Can
• PET

By Brewing Type

• Macro Brewery
• Micro Brewery
• Craft Brewery

By Distribution Channel

• Online
• Offline