Market Trends of Cambodia Foodservice Industry
This section covers the major market trends shaping the Cambodia Foodservice Market according to our research experts:
Growing Influence of Online Food Delivery Apps
While online (web-portal) food delivery services have been available in Phnom Penh, food delivery apps have expanded to include more cities. The ease of ordering has significantly improved in recent years, especially following the pandemic. Moreover, the ease of order and payment has further propelled the market's growth. More than 12 companies are operating in the online food delivery business, expanding their presence across the major cities of Cambodia, like Phnom Penh, Kampot, Kep, and Siem Reap. The key international players are also entering the market due to the growing inclination of Cambodian consumers in the online food service segment. For instance, in August 2022, in Phnom Penh, Cambodia, Grab's super-app GrabFood launched following a successful four-month beta test. The GrabFood app provides consumers with on-demand delivery of food and drinks from Southeast Asia's leading food delivery companies.
Also, in March 2020, the international food delivery app, Food Panda, entered the Cambodian market with a promise to offer a fast and convenient food delivery service. The app is slowly building a more extensive selection of outlets. Amid the COVID-19 pandemic, the food delivery service expanded quickly with dramatic growth. Additionally, the rising number of internet and mobile users is also boosting the online food delivery segment in the country. According to data from the Telecommunication Regulator of Cambodia (TRC), internet subscriptions have surpassed the country's total population, which is 16 million. In 2021, there were 19,899 million mobile phone subscribers.
Rising Number of Tourists are Increasing Boosting the Growth of Foodservice Industry
Cambodia is experiencing rapid growth in the tourism industry which is, in turn, profitable for international food service brands in the country. However, the tourism industry witnessed a slight decline due to the Covid-19 pandemic but slowly the industry is rebounding post-pandemic owing to the favorable government initiatives being implemented to boost the tourism rate. This, in turn, benefits the food service industry. For instance, in April 2022, a Tourism Development Master Plan for Mondulkiri was officially launched by the Cambodian Government in an effort to improve the attractiveness of Cambodia's largest province, which is also the least populated one, by focusing on the tourism and agriculture industries. Moreover, as tourists visit more independent outlets, they are gaining popularity for their affordable foreign cuisine offerings, which are more affordable than those in full-service restaurants. The market in the country is competitive and mostly dominated by independent and local players. Additionally, new international players are entering the market owing to the rising demand for fast food in the country. For instance, in April 2021, one of the largest US pizza chains, Papa John's, opened its first restaurant in Cambodia. There will be 15 Papa John's restaurants in the country within three years.
