Cambodia’s e-commerce market set to hit $1.78 billion in 2025

Cambodia’s e-commerce market set to hit $1.78 billion in 2025

Cambodia’s e-commerce sector is poised for strong growth, with the market projected to reach $1.78 billion by 2025, up from $1.51 billion in 2024, according to iTrade Bulletin by the Ministry of Commerce (MoC).

The data represents a compound annual growth rate of 17.88 percent, highlighting the rapid digital adoption among consumers and businesses.

The country holds a 1.3 percent share of the ASEAN e-commerce market, which is expected to grow from $116.36 billion in 2024 to $137.24 billion by 2025.

E-commerce has become a significant contributor to Cambodia’s economy, accounting for 6.68 percent of GDP in 2024. Platforms such as Facebook, TikTok, and Telegram dominate online sales, underscoring the role of social commerce in driving digital transactions.

QR codes have emerged as the most popular payment method, representing 47.15 percent of transactions, followed by cash at 26.5 percent, mobile money transfers at 13.3 percent, and other methods at 13.05 percent. This trend reflects growing public confidence in digital payments, supported by mobile banking integration.

ABA Bank leads in banking integration with a 46.89 percent share, followed by ACLEDA Bank at 30.90 percent and Wing Bank at 17.02 percent, emphasizing the importance of financial institutions in the digital economy.

High mobile connectivity continues to support e-commerce expansion. Cambodia recorded 21.9 million mobile subscriptions and an equal number of internet users in 2024. Social media platforms play a central role, with 11.65 million Facebook users and nearly 10 million TikTok users contributing to the rise of shoppertainment and livestream selling.

Consumer behaviour is shifting online, with many Cambodians now making purchases monthly. Most consumers spend between $11 and $50 per transaction. Popular product categories include fashion (23 percent), food and beverage (20 percent), beauty and personal care (19 percent), and tech and electronics (14 percent).

The Royal Government has implemented a range of policies to foster a secure and competitive e-commerce environment. These include a legal framework for e-commerce trustmarks, simplified VAT registration for digital businesses, the Cambodia Digital Economy and Society Policy Framework (2021-2035), the Digital Government Policy (2022-2035), initiatives to streamline business registration through a one-stop service platform, and updated procedures for issuing e-commerce business permits.

The rise of ‘Buy Now, Pay Later’ services is also expected to influence consumer behavior, with more online retailers adopting the model.

As internet access and smartphone usage continue to rise, Cambodia’s digital commerce ecosystem is expected to evolve rapidly. Strong banking partnerships, mobile-first platforms, and active government support are laying the foundation for inclusive and sustainable digital trade.

However, Sophat Chy, a digital creator, told Khmer Times that Cambodia’s e-commerce sector is still in its infancy and has not yet reached a stage where it is fully functional or widely adopted.

As a result, the domestic online market remains relatively small. “However, globally—especially in technologically advanced countries—the e-commerce industry has progressed significantly, and the online market is large and well-established,” he said.

Despite this slow development, Sophat believes that e-commerce brings numerous advantages to Cambodia’s economic landscape. “E-commerce provides many benefits for the economy. It increases job opportunities in our country and transforms traditional business operations by shifting from direct sales to online sales. It also makes it easier for consumers to purchase and receive goods,” he explained.

He further highlighted that the digital shift is fostering a new generation of innovation and entrepreneurship in Cambodia. “The sector encourages innovation and competition, particularly in program development, and creates opportunities for entrepreneurs or individuals who wish to start a business without needing a large amount of capital.”

Social media platforms are also playing a key role in this transformation. “Social networks such as Facebook and TikTok play a vital role in supporting the e-commerce market because they have large user bases and serve as important platforms for promoting businesses, brands, and operational procedures,” he said.

Still, Sophat acknowledged that Cambodia lacks a strong local e-commerce platform. “To be honest, Cambodia does not yet have a popular local e-commerce platform. On the contrary, many Cambodians frequently place orders from international platforms such as Taobao and Lazada. This growing trend is reflected in the increasing presence of shipping and delivery companies in Cambodia including Loda, ZTO, and others.”

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