Minimum Legal Purchasing Age for Alcohol Products REF#8551

30 Jul 2024 | Fast Moving Consumer Goods Issue Tackled

Last modified date: 30 Jul 2024

Issue Description

Underage drinking is a significant issue not only in Cambodia but also globally. According to the latest Cambodia Demographic and Health Survey 2021-2022, 36% of Cambodians aged 15 to 19 consume alcohol, with many starting as early as 14 years old. Despite these concerning trends, Cambodia remains one of the few countries worldwide without an LPA for alcoholic products. In 2023, research conducted by MM4A, and Asian Vision Institute (AVI) found that approximately 85% of Cambodian youth support the implementation of a minimum legal purchasing age (LPA) of 18 years old. 

Alcohol consumption at an early age can have a long-term impact on a young person’s development and health. Implementing a minimum LPA is crucial in reducing issues related to alcohol misuse, such as underage drinking, drunk driving, violence, and risky behaviours. Additionally, it helps alleviate the economic and social costs associated with underage drinking, including higher healthcare expenses and productivity losses amounting to millions of dollars each year.  

Implementing a minimum LPA for alcohol in Cambodia not only demonstrates a commitment to prevent the harmful use of alcohol and promote responsible consumption, but it also contributes to the creation of a safer and more reliable marketplace for all stakeholders. This aligns with the Association of Southeast Asian Nations’ Strategic Action Plan for Consumer Protection 2016-2025, and it’s set of High-Level Principles for Consumer Protection.  

Impact on business

The industry is committed to ensuring responsible consumption and transparency to its consumers as well as fostering sustainable and responsible long-term growth. By establishing and enforcing a minimum legal purchasing age (LPA), Cambodia can reduce the occurrence of alcohol-related problems among young people. It sends a clear message that alcohol is an adult product and should be consumed responsibly and within legal boundaries. 

While it is true that without such regulations, it could potentially benefit private companies such as sales increased, however, the importance of an LPA extends beyond the realm of profits.    

By complying with legal purchasing age regulations, private companies can prevent the promotion of potentially inappropriate or harmful products to minors. Failure to adhere to these regulations could lead to a negative impact on a brand’s reputation. For example, if accidents are caused by youth engaging in drunk driving and it is discovered that they consumed this specific brand, it will inevitably result in detrimental consequences for the brand’s reputation.    

Lastly, the absence of such regulations will discourage those potential investors who prioritize social responsibility business practices. For instance, beverage companies that uphold strong social and responsible business practices will be hesitant to invest in a country where the LPA is not enforced. 

Recommendation

  • Implement a minimum purchasing age of 18 years for alcohol products.  

EuroCham acknowledges and appreciates the initiative and commitment shown by the Ministry of Commerce (MoC) in working on setting the minimum age to consume, buy or sell alcohol at 18 years old. We are fully aware of the continuous efforts made by the MoC to prepare a regulation on legal purchasing age (LPA). Additionally, EuroCham would welcome the opportunity to collaborate with the Royal Government of Cambodia to ensure effective implementation of the LPA. The alcohol industry stands ready to provide support in any capacity to assist in upholding the regulations and promoting responsible consumption practices. 

Furthermore, the introduction of a minimum LPA provides important guidance for the Cambodian alcohol industry, promoting responsible practices in terms of alcohol supply, sale, and advertising. It establishes a clear legal framework, promoting ethical marketing and sales approaches, thereby preventing the inadvertent targeting of underage consumers. By regulating the sale and advertising of alcohol, it creates a level playing field for businesses operating in the industry. 

Dialogue with

Royal government of Cambodia

Initiative from Eurocham: This issue has been raised by the Fast Moving Consumer Goods Committee and was published into the Advocacy Compass on 30th of July 2024.

No response from the Royal Government of Cambodia