Cambodia’s E-commerce sector is experiencing rapid growth, with a market value reaching approximately USD 1.12 billion in 2024. It is expected to grow at a compound annual growth rate (CAGR) of 9.98% from 2024 to 2029, potentially reaching a volume of USD 1.81 billion by 2029. This is driven by increased internet penetration, the widespread adoption of digital payments, and evolving consumer behavior in the post-pandemic era. This growth is further supported by innovative solutions from various industry players.
Digital Commerce Revenue Chart
Several factors are contributing to the expansion of Cambodia’s E-commerce sector. These include rapid digital payment adoption, a tech-savvy youth population, rising smartphone penetration, and strong government support. The predominantly young demographic in Cambodia is quick to adopt digital platforms and online shopping. The Royal Government of Cambodia has achieved a 92% implementation rate of measures included in the action matrix of the UNCTAD eTrade Readiness Report conducted in 2016. The Ministry of Commerce has also played a crucial role by hosting the first Digital Trade Forum & Expo and signing an MOU with Alibaba to enhance national E-commerce and promote Cambodian products globally.
The rise in social media usage also facilitates social commerce and enhances brand awareness. Facebook remains Cambodia’s leading platform, with 11.65 million users, reaching 69% of the population in 2024. In 2024, TikTok reached 9.96 million users (90% of Cambodian adults), with a 41% year-over-year ad reach growth. Local influencers and celebrities are pivotal in Cambodia’s social commerce, where authentic reviews build consumer trust.
However, the Cambodian E-commerce market also faces challenges. Insufficient logistics, underdeveloped digital infrastructure, and low digital literacy, particularly in rural areas, restrict market access, reduce operational efficiency, and slow E-commerce adoption. Other challenges include payment trust issues, regulatory and infrastructure gaps, intense regional competition, cybersecurity risks, and economic and regulatory uncertainty.
Despite these challenges, there are significant opportunities for growth. Cambodia’s E-commerce sector is poised for expansion through global market opportunities, increasing domestic demand, cross-border trade, foreign investment, and advancements in digital infrastructure and payment systems.
