Cambodia Cassava Market - Trend Analysis & Forecast to 2030

Cambodia cassava production reached 14.26 million tonnes in 2022 and is projected to grow at a CAGR of xx% from 2020 to 2030. The Cambodia cassava market has emerged as a significant player in the global cassava supply chain. With a steady increase in production over recent years, Cambodia has become one of the top exporters of cassava products, driven by demand from industries such as food processing, biofuels, and animal feed. Market growth is projected through 2030.

Market/ Product Overview

Cambodia’s cassava market plays a crucial role in its agricultural sector, with the crop being one of the most widely cultivated and exported agricultural products. Cassava production has expanded steadily due to favorable climatic conditions, low input costs, and strong demand from key markets like China, Thailand, and Vietnam. The growing use of cassava in various industries, such as food, starch, and bioenergy, contributes to its rising significance. However, despite strong production levels, the market faces challenges like limited processing facilities and supply chain inefficiencies, which hinder its full potential. Looking ahead, Cambodia's cassava market is expected to continue growing, supported by improving trade infrastructure, rising demand for cassava-based products, and government efforts to bolster agricultural exports.

Cambodia’s Significance in the Global Cassava Supply

Cambodia is an important supplier of cassava in the global supply chain, ranking among the top cassava exporters in Southeast Asia. Its geographical proximity to major markets such as Thailand and China gives it a competitive edge in trade. The country primarily exports cassava chips and starch, contributing significantly to global cassava product supplies.

Cambodia Cassava Supply & Demand Trend

Cassava production in Cambodia has seen consistent growth over the past decade. Favorable climatic conditions, government initiatives, and rising demand for cassava products have contributed to this upward trend. The demand for cassava is driven by its wide-ranging applications in industries like food, bioenergy, and animal feed. The domestic demand remains limited, but exports, especially to neighboring countries, continue to thrive.

Cambodia Cassava Market Growth Factors

The market growth of cassava in Cambodia is driven by several factors. The increasing global demand for cassava-based products such as starch, ethanol, and animal feed is a key driver. Additionally, the relatively low production costs, favorable weather conditions, and the government’s focus on agricultural exports enhance the market's growth potential. The rising consumption of cassava in the food industry, particularly as a gluten-free alternative, also fuels demand. Cambodia’s strategic location near key markets such as China and Thailand offers easy access to export channels, boosting trade prospects. The expansion of biofuel industries also encourages further production.

Cambodia Cassava Market Restraints & Challenges

Despite the market’s growth potential, it faces several challenges. Limited domestic processing infrastructure hampers the ability to add value to cassava products before export, resulting in reduced profitability. Poor road conditions and lack of storage facilities lead to post-harvest losses, while fluctuating global cassava prices affect the stability of returns for farmers. Moreover, Cambodia’s dependence on a few major export markets exposes it to risks associated with demand fluctuations and trade barriers in those regions.

Cambodia Cassava Supply/ Value Chain Bottlenecks/ Challenges

Cambodia's cassava supply chain encounters numerous bottlenecks that hinder efficiency. A major issue is the lack of adequate processing facilities, leading to a reliance on raw cassava exports with minimal value addition. Infrastructure challenges, including inadequate transportation networks and poor road conditions, increase the cost of moving cassava from farms to processing centers or export terminals. Limited access to financing for small-scale farmers further restricts their ability to invest in modern farming practices and post-harvest storage solutions, resulting in lower yields and higher post-harvest losses.

Price Setting Power of Cambodia in Global Cassava Value Chain

Cambodia has limited price-setting power in the global cassava market due to its reliance on a few large export markets like China and Thailand. Prices are often influenced by global demand fluctuations, production levels in competing countries, and international market trends. Cambodia’s ability to dictate prices remains constrained by its dependence on exporting raw cassava products, limiting value addition and reducing leverage.

Cassava End-use Industries

Cassava serves various end-use industries, including the food, bioenergy, and animal feed sectors. In the food industry, cassava is processed into starch, flour, and sweeteners. The bioenergy sector uses cassava for ethanol production, while the animal feed industry utilizes cassava chips and pellets. Its versatility makes cassava an important agricultural commodity with diverse applications.

Cambodia's cassava starch industry is a growing segment of the agricultural sector, driven by increasing global demand for starch in various industries such as food processing, textiles, paper, and bioenergy. Cassava starch is extracted from the tuberous roots of cassava plants and is highly valued for its versatility, particularly as a gluten-free alternative in the food industry. Cambodia primarily exports cassava starch to neighboring countries like Thailand, China, and Vietnam, where it is processed further for industrial uses. Despite its potential, the sector faces challenges such as limited domestic processing capacity and infrastructure bottlenecks, which reduce the ability to produce high-value starch products. However, ongoing investments in processing facilities and improved trade networks are expected to boost the country’s cassava starch exports in the coming years, contributing significantly to Cambodia's agricultural economy.

Cambodia Cassava Trade (Export & Import) Trend

Cambodia is primarily an exporter of cassava, with most exports going to neighboring countries like Thailand, China, and Vietnam. Cassava chips and starch are the main products traded, driven by strong demand from industrial sectors in these countries. Cambodia’s exports have steadily increased due to rising demand for cassava-based products, particularly in China for food processing and bioenergy. However, imports of cassava into Cambodia remain minimal, as the country produces a surplus. The government has initiated several trade agreements to ensure stable market access and competitive pricing for cassava exports.

Cambodia exported 57.27 thousand tonnes of tapioca/cassava starch in 2022, in which China imported more than 95% of the export quantity.

Cambodia Cassava Market Competitive Analysis

The Cambodian cassava market is characterized by a fragmented supply chain, with numerous small-scale farmers and traders operating in the sector. The industry lacks significant consolidation, with only a few larger companies involved in processing and exporting cassava. Competition is primarily driven by production scale, access to processing facilities, and export connections. Most companies focus on raw cassava exports, which limits value addition and differentiation.

List of Key Companies in Cambodia Cassava Market (Manufacturers/ Suppliers/ Exporters),

■ Chip Mong Group
■ Mong Reththy Group
■ Angkor Kasekam Roongroeung Co.
■ Heng Hout Group
■ Sonatra Group
■ Cambodia Cassava Association
■ Oknha Ly Hong’s Agriculture
■ Cassava Processing Co.
■ Vong Bun Heng Group
■ Angkor Bio Cogen
■ LVP Trading
■ Khmer Foods Group
■ Kim Chea Group
■ KKR International
■ Koh Kong Group

Future Outlook

The future outlook for the Cambodia cassava market is positive, with growth projected through 2030. Increasing global demand for cassava-based products, improved processing infrastructure, and enhanced trade agreements are expected to drive market expansion. Government support and investment in transportation and storage facilities will further enhance Cambodia's competitiveness in the global market. However, addressing supply chain inefficiencies and diversifying export markets will be crucial to sustaining long-term growth and ensuring market stability.