According to Euromonitor, retail sales in the packaged food market in Cambodia had been estimated to reach US$441.1 million in 2016. That represents a growth rate of over 55.5% or US$157.3 million since 2012. The forecast for growth
in this market is also promising. By the year 2021, the retail sales in the packaged food market in Cambodia is expected to reach US$632 million, a growth rate of 33.5% or US$158.8 million. High growth categories in the forecast ready meals, breakfast
cereals, ice cream and frozen desserts, sweet biscuits snack bars and fruit snacks, savory snacks, and baked goods.
Euromonitor has Cambodia also identified as one of the “20 Markets of the Future” that will offer the most opportunities for consumer goods companies. Young
and growing population, growing middle and investments to infrastructure as well as improved business climate are anticipated to foster sales of consumer goods. Packaged Food and Alcoholic Drinks are expected to remain the largest category over the
forecast period, while Consumer Electronics is forecast to be the fastest-growing category.
Post reports that Lucky Markets is the leading retail chain in Cambodia, with 10 supermarket outlets, along with fast food operations (Lucky Burger) and in-store bakeries. Lucky
imports some products directly from the U.S., such as frozen potatoes, and others in consolidated shipments from Singapore. Dairy Farm International (DFI), of Hong Kong, recently acquired Lucky Markets and operates in Cambodia under the name DFI Lucky
Private Limited.
Japanese retailer AEON opened a large mall and hypermarket in 2014 and was able to attract 15 million visitors in the first year. The company plans to open a second hypermarket in 2018. AEON imports
many of their food products from Japan, Thailand, and Singapore, but the hypermarket also carries some U.S. brands.
Other food retailers that offer a variety of imported products include Bayon Markets, Thai Huot Supermarkets, Veggy's and Super Duper. Most
modern retail outlets are located in Phnom Penh, but there is an increasing presence in Siem Reap, including Angkor Market, Lucky Market, Thai Huot Market, and Asia Market. Modern retailers in Phnom Penh often import from foreign suppliers, while
smaller supermarkets in Siem Reap position themselves as distributors and source their products from the importers based in Phnom Penh. Retailers, such as DFI Lucky and Thai Huot, also serve the foodservice trade through their retail stores or wholesale
operations.
IMR Report
Food Export’s In-Market Representative (IMR) from Vietnam has commercial ties with the Cambodian food market and visited it for a firsthand view. His Primary research feedback from the market indicates though shoppers in modern
markets mostly are mid and high-income earners who are aware that the import products are high quality (depending on the origin of manufacture), they are willing to purchase higher-priced products based on the most preferred origins such as from the
U.S., EU, and Australia. This is also a price-sensitive market, however, because there are many competing origins in the same category. Traders and importers want to work with U.S suppliers directly in order to make the prices more competitive instead
of obtaining them through 3rd party countries.
The details indicated imported processed food, red meats, seafood, and beverage products are mostly imported through other ASEAN countries and some direct shipments arrive from the U.S. in consolidated containers. Some
of the local trading companies are run by expatriates who have Cambodian citizenship and with multi-national companies. Supermarkets such as Lucky import full mixed containers from the U.S. of products including french fries, meats, and seafood.
The IMR also reported that U.S. food and agricultural products with high potential in Cambodia at this point include concentrated milk and other dairy products, breakfast cereals, potato chips, sauces, beer and wine, and non-alcoholic beverages. This
sounds like most of the other Southeast Asian markets as well, including Vietnam, which at one point was also a small market many thought, had no potential and their growth has been phenomenal.