The Industrial Revolution 4.0 – along with the onset of the Covid-19 pandemic at the end of 2019 – accelerated the use of technology in worldwide commerce far beyond expectations. Cambodia was no exception, with 2024 e-commerce in the Kingdom reaching a total value of over $1.5 billion.

Cambodia’s E-Commerce growth in 2024 is driven by increased internet penetration, widespread adoption of digital payments, and evolving consumer behavior post-pandemic, coupled with innovative solutions from industry players.

The iTrade Bulletin, published by the Ministry of Commerce on April 7, showed that Cambodia's e-commerce market in 2024 was valued at $1.51 billion, with predictions that it will grow to $1.78 billion in 2025, an increase of 17.88%. The size of Cambodia's e-commerce market accounts for 1.3% of the regional (ASEAN) market, which is approximately $116.36 billion.

In 2024, e-commerce contributed 6.68% to Cambodia's gross domestic product (GDP). Social media platforms like Facebook, TikTok and Telegram dominated the online market in Cambodia.

The majority of products purchased via technology were apparel, which accounted for 37%, followed by beauty and cosmetic products at 20%, and food delivery at 19%.

Shopping online is convenient, fast and often cheaper than buying at traditional markets. The report noted that the most popular platforms for online shopping in Cambodia included Facebook (11.65 million accounts), TikTok (9.96 million accounts), as well as Khmer 24 and Taobao.

Most consumers spent between $11 and $50 each month. Payments were mostly made via QR code (47.15%), cash (26.5%), money transfers (13.3%) or other methods (13.05%).

Chhin Ken, president of the Cambodia Digital Technology Association, told The Post on April 8 that the trend of e-commerce in Cambodia has grown rapidly since the Covid-19 pandemic.

Shopping online is convenient, fast and often cheaper than buying at traditional markets. He also noted that the government has introduced policies that promote the use of technology among the wider public.

“The difficulties of travelling and having direct interactions with vendors during the pandemic led to a continuous increase in e-commerce, even though initially, the technological knowledge of the public was limited,” explained Ken.

He acknowledged that e-commerce also faces challenges, such as counterfeit products, quality issues, high shipping costs and even cases where customers have paid for goods but not received them.

The expansion of Cambodia’s E-commerce sector reflects the country’s broader commitment to digital transformation, as outlined in the Pentagonal Strategy Phase I and the Digital Economy and Society Policy Framework 2021-2035.

As Cambodia deepen its digital integration, the evolution from E-commerce to a broader digital trade ecosystem will be instrumental in ensuring economic resilience and global competitiveness.

Looking ahead, the market is expected to grow at a compound annual growth rate (CAGR) of 9.98 percent from 2024 to 2029, potentially reaching a volume of $1.81 billion by 2029.