Language selection

Search

Sector Trend Analysis – Packaged food trends in Colombia

July 2018

Executive summary

Colombia is the fourth largest economy in Latin America, after Brazil, Mexico, and Argentina, and has a large population estimated at 49.0 million inhabitants making it the third most populated country in South America, behind Brazil and Mexico. The country has two seacoasts (Pacific and Caribbean), which is considered a shipping advantage in today's global market.

Colombia accomplished major security improvements and steady economic growth in the past few years, which encouraged foreign investments.

Canada and Colombia enjoy a solid trade relationship supported by a Free Trade Agreement in effect since August 2011; Colombia is the second largest market for Canadian agri-food and seafood products exports in Latin America after Mexico.

Colombia's domestic demand and household consumption have grown steadily over the last five years. The large young population living in urban areas has developed new tastes and preferences becoming more health conscious and selective.

The food retail sector in Colombia is one of the most modern in Latin America, with estimated sales of US$11.6 billion in processed food products in 2017. The sector grew by a compound annual growth rate (CAGR) of 5.0% from 2013 to 2017, and Euromonitor International international predicts a CAGR of 5.2% from 2018 to 2022 to reach US$18.2 billion.

Introduction

Colombia/Canada imports – in brief

Canada and Colombia enjoy a solid trade relationship supported by a Free Trade Agreement, in force since 2011. Colombia is Canada's second largest export market in South America. Canada's agri-food and seafood exports to Colombia totalled US$297.7 million in 2017 and included wheat and meslin, pulses, frozen pork and frozen French fries.

Imports from Colombia reached US$400.2 million in 2017 and included coffee beans, fresh bananas, cut flowers and sugar.

Key demographic indicators

Colombia is the third most populated country in Latin America after Brazil and Mexico at 49.0 million inhabitants. About 75% of the Colombian population resides in urban areas. Colombia is atypical of Latin America with decentralized urban centers and six cities with over one million residents.

According to Euromonitor International, Colombia's population is set to reach the 50 million milestone in 2020. By 2030, it should total 53.9 million, nearly twice as large as it was in 1980.

Colombia's population of main metropolitan areas
Rank Biggest cities in Colombia Metro Population
1 Bogota 9,800,000
2 Medellin 3,731,447
3 Cali 3,400,000
4 Barranquilla 2,370,753
5 Cartagena 1,239,430
6 Bucaramanga 1,212,657
7 Cucuta 833,816
8 Ibague 523,068
9 Pereira 472,023
10 Soledad 461,851
Source: World Atlas 2018.

Colombia's population is aging rapidly, with its median age increasing from 30.9 in 2017 to 36.4 years in 2030. As a comparison, the average median age for the Latin America region will increase at a slower pace and will remain lower in 2030 at 34.4 years.

On the other hand, the number of working age population (aged 15-64 years) should increase by 9.2% in 2017-2030 to total an all-time high of 36.2 million, yet their share in total population will fall from 68.7% to 68.0%.

Colombia's segment of population and median age in thousands
Segment of population 2013 2014 2015 2016 2017
Population aged 0-14 11,883.3 11,801.1 11,713.2 11,615.0 11,511.2
Population aged 15-64 32,380.3 32,759.6 33,120.7 33,468.4 33,799.7
Population aged 65+ 3,079.4 3,231.2 3,394.8 3,570.1 3,754.7
Median age of population - years 29.2 29.6 30.0 30.5 30.9
Source: Euromonitor International 2018.

Consumer behaviors

Home cooking habits of Colombians are gradually changing, with more members of the household contributing to preparing daily meals. Typically, the mother was in charge of this task, or a grandmother or aunt, in the case of families where the mother is in the workforce, was in charge of this task. This trend was highlighted in Euromonitor International's Colombia country profile that indicated: 49% of Colombians prepare their own meals every day, while 45% consume the meals prepared for them by a family member. The rise of single-person households is also driving up the proportion of persons who prepare their own meals every day.

The four food items most consumed by Colombians are bread, meat, potatoes and rice. These items are at the core of Colombians' eating habits and can be found on the tables of most households in the country, although there are also considerable differences in preparation and gastronomy across regions, these four food items are common.

According to Euromonitor International, Colombians prefer food that both "contains protein" and "has reduced or low calorie. This in part reflects Colombians' strong preference for meat as the main source of protein, which, together with rising incomes, has led to a long-term rise in consumption of chicken, fish, beef and pork in the country.

Consumer trends

Urban households in Colombia are becoming more typically dual income, resulting in an increasing demand for food and shopping convenience. Colombia consumers are adopting supermarkets shopping at high pace, driving a significant retail transformation and expansion over the last decade. Major domestic and international grocery chains are opening new stores, of varying sizes, to answer the rapidly growing consumer's demand.

The rising popularity of supermarkets and hypermarkets in the country has been one of the main drivers for the growth in packaged foods, as well as canned and preserved foods as traditional markets are limited to fresh food products. In addition, Colombians value the convenience of packaged and canned foods with busy lifestyles, like mothers who are working, or young professionals who are living alone.

Furthermore, the perception of hygiene and cleanliness of supermarket food amongst Colombian consumers has also contributed to growing demand for packaged and processed food, and retailers in the country have tried to emphasise the trustfulness and timesaving characteristics of packaged food products.

As Colombians economic wealth increases, they become increasingly more conscious of the benefits of a proper diet to maintain or improve their overall health and for their physical image. Consumers are looking for healthier food options that are having an impact on their daily eating habits.

Colombian consumers are searching for foods that are all-natural, have natural flavours, or are based on fruits and vegetables. Mintel have observed this trend in Colombia for several years, as new generations like the Millennials are giving high importance to these kinds of products, since they are more cautious and want to prevent health problems.

Colombia, reached the status of upper-middle-income country with the rise of personal income and double income families of recent years. The sustained growth of purchasing power has rapidly revived the country's processed food sector, with local food producer and imports riding the unstoppable wave of consumerism and the influx of foreign players.

Characterised by their young age and willingness to spend, Colombian consumers are nowadays more aware of quality and brands. Euromonitor International notes that imported, innovative food products, despite their premium prices, are greatly sought after.

Historic Colombia's consumer expenditure on food and non-alcoholic beverages per capita per year in US$
Category 2013 2014 2015 2016 2017
Bread and cereals 85.9 81.7 95.6 98.0 102.3
Meat 106.1 116.7 126.0 137.0 144.0
Fish and seafood 10.7 11.8 12.7 13.8 14.5
Milk, cheese and eggs 80.8 85.2 90.0 95.7 100.3
Oils and fats 19.5 23.6 26.8 28.0 29.3
Fruit 58.3 63.3 70.0 76.1 80.0
Vegetables 54.1 58.3 63.9 68.9 72.4
Sugar and confectionery 38.2 37.1 41.4 42.9 44.7
Other food 9.9 10.4 13.7 15.1 16.0
Total consumer expenditure on food and non-alcoholic beverages 542.1 574.7 632.9 676.3 709.6
Coffee, tea and cocoa 20.8 22.8 24.5 26.4 27.7
Mineral waters, soft drinks, fruit and vegetable juices 57.9 63.9 68.3 74.5 78.5
Total consumer expenditure on non-alcoholic beverages 78.7 86.7 92.8 100.8 106.2
Source: Euromonitor International 2018.
Forecast Colombia's consumer expenditure on food and non-alcoholic beverages per capita per year in US$
Category 2018 2019 2020 2021 2022
Bread and cereals 107.3 113.0 119.2 125.8 133.0
Meat 151.8 160.5 169.7 179.5 189.9
Fish and seafood 15.4 16.3 17.2 18.2 19.2
Milk, cheese and eggs 105.6 111.4 118.0 124.7 131.8
Oils and fats 30.9 32.8 34.8 36.8 39.0
Fruit 84.4 89.2 94.2 99.5 105.1
Vegetables 76.2 80.4 84.9 89.6 94.7
Sugar and confectionery 46.9 49.4 52.2 55.2 58.2
Other food 16.9 17.9 18.9 20.0 21.2
Total consumer expenditure on food and non-alcoholic beverages 747.5 789.3 834.3 881.6 932.1
Coffee, tea and cocoa 29.1 30.7 32.3 34.1 36.1
Mineral waters, soft drinks, fruit and vegetable juices 82.9 87.7 92.8 98.2 103.9
Total consumer expenditure on non-alcoholic beverages 112.1 118.4 125.1 132.3 139.9
Source: Euromonitor International 2018.

Packaged food sales

Euromonitor International predicts that sales of packaged food will continue to grow in the Colombian market, as consumers continue to seek out convenient meal solutions amidst demographic and lifestyles changes. In addition, manufacturers will continue to introduce value-added products in less developed categories, which will contribute to sustaining the declines in more mature staple categories.

Packaged food retailers are also taking more active role in recommending products 'better for you' claims to consumers. Premium food retailer Carulla (supermarket) as an example, is making private label products with a "bueno para ti" (better for you) label as part of its offerings. This trend validates Euromonitor International and Mintel observations on Colombian consumers embracing eating healthy habits as a result of socio-economic changes.

Colombia packaged food market sizes historical - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Baby food 174.4 189.3 189.4 211.9 228.1 6.9
Baked goods 1,763.7 1,826.9 1,884.8 1,947.1 2,006.7 3.3
Breakfast cereals 155.6 163.7 172.4 178.7 187.7 4.8
Confectionery 427.1 451.9 477.9 503.5 529.4 5.5
Dairy 2,482.3 2,572.1 2,679.6 2,775.1 2,904.1 4.0
Edible oils 503.3 553.1 614.4 665.5 712.9 9.1
Ice cream and frozen desserts 399.5 433.8 455.9 483.9 507.2 6.1
Processed fruit and vegetables 71.8 73.0 74.2 78.3 83.1 3.7
Processed meat and seafood 806.7 890.9 892.7 951.6 1,013.2 5.9
Ready meals 71.1 83.9 89.7 96.1 101.2 9.2
Rice, pasta and noodles 1,188.6 1,223.6 1,293.7 1,352.6 1,424.5 4.6
Sauces, dressings and condiments 310.1 317.8 330.3 342.5 359.0 3.7
Savoury snacks 778.5 831.9 887.0 928.9 985.0 6.1
Soup 24.2 23.9 23.2 24.3 25.4 1.2
Spreads 56.5 60.5 64.5 66.0 68.8 5.0
Sweet biscuits, snack bars and fruit snacks 377.1 400.9 447.1 482.6 522.4 8.5
Total Packaged food 9,590.6 10,097.1 10,576.9 11,088.5 11,658.7 5.0

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

In sales terms, the most important packaged food categories by value within Colombian market are dairy, bakery products (led by bakery goods), and dried processed foods (led by rice and instant noodles). As a more North American of eating habits spreads amongst consumers, ice cream, baby foods, snacks, ready meals, as well as portable, innovative and convenient foods, will be making headway.

Colombia packaged food market sizes forecast - retail sales in US$ millions
Category 2018 2019 2020 2021 2022 CAGR* % 2018-2022
Baby food 246.0 263.6 281.6 300.1 318.8 6.7
Baked goods 2,066.4 2,128.7 2,199.5 2,279.6 2,363.7 3.4
Breakfast cereals 199.0 209.8 220.4 231.0 241.4 4.9
Confectionery 563.3 596.6 630.5 665.1 700.2 5.6
Dairy 3,064.5 3,221.0 3,382.4 3,547.2 3,715.0 4.9
Edible oils 763.1 812.7 863.5 915.4 967.6 6.1
Ice cream and frozen desserts 539.6 580.2 621.5 663.8 707.1 7.0
Processed fruit and vegetables 88.9 94.3 99.6 104.7 109.7 5.4
Processed meat and seafood 1,079.6 1,143.0 1,205.3 1,267.1 1,328.9 5.3
Ready meals 108.3 115.1 121.7 128.1 134.4 5.5
Rice, pasta and noodles 1,515.3 1,601.7 1,687.1 1,771.2 1,855.0 5.2
Sauces, dressings and condiments 378.8 397.4 415.7 433.8 451.8 4.5
Savoury snacks 1,045.2 1,116.5 1,188.8 1,260.0 1,331.7 6.2
Soup 26.8 28.1 29.5 30.8 32.2 4.7
Spreads 73.1 77.3 81.4 85.5 89.6 5.2
Sweet biscuits, snack bars and fruit snacks 566.6 610.5 655.4 701.3 747.9 7.2
Total packaged food 12,324.5 12,996.2 13,683.8 14,384.6 15,095.2 5.2

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

Foodservice

Increased access to the international media and tourism industry are also shaping the food choices that Colombians make, especially in the younger population. International cuisines are making their way into the market and in recent years, various ethnic and fusion restaurants have opened in Colombia.

The Colombia Restaurant Association (in Spanish only) (ACODRES) estimates that there are 65,000 restaurants throughout the country. There is a significant increase in high-end restaurant establishments in all major cities. In addition, the fast food sector has grown rapidly, providing an excellent alternative to higher-end restaurants in times of economic slowdown. Colombians are becoming more inclined to eat in fast food restaurants due to dual income, working families who look for convenience and affordability in their dining out options.

According to Euromonitor International, foodservice value sales in Colombia increased 3% from 2016 to 2017 while the number of transactions grew by 3% in the same period; however, the volume sales grew by meagre 0.8%. The most dynamic sectors have been specialty coffee shops, high-end bakeries, fast food establishments and food for home delivery.

Colombia packaged foodservice volume sizes - historic - in '000 tonnes
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Baby food
Baked goods 248.0 249.8 246.9 244.6 243.3 −0.5
Breakfast cereals 1.0 1.0 1.0 1.0 1.0 0.0
Confectionery 1.1 1.1 1.1 1.1 1.2 2.2
Dairy 215.7 209.8 208.8 206.4 203.8 −1.4
Edible oils in litres 102.4 108.9 119.9 123.3 128.1 5.8
Ice cream and frozen desserts 2.1 2.2 2.2 2.2 2.3 2.3
Processed fruit and vegetables 41.5 42.1 42.4 42.7 43.0 0.9
Processed meat and seafood 61.0 61.4 61.8 62.8 64.6 1.4
Ready meals 0.0 0.0 0.0 0.0 0.0 0.0
Rice, pasta and noodles 414.9 420.9 427.5 433.9 440.0 1.5
Sauces, dressings and condiments 12.3 12.4 12.5 12.7 12.9 1.2
Savoury snacks 4.6 4.7 4.9 4.9 5.0 2.1
Soup 0.2 0.2 0.2 0.2 0.2 0.0
Spreads 0.5 0.5 0.5 0.5 0.5 0.0
Sweet biscuits, snack bars and fruit snacks 0.9 0.9 1.0 1.0 1.0 2.7
Total foodservice 1,106.2 1,115.9 1,130.7 1,137.3 1,146.9 0.9

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

Companies market shares

Major food manufacturers and retailers such as Nestlé, PepsiCo and Bimbo, amongst others are now well established in the Colombian market. According to Euromonitor International, these large-scale manufacturers formed an alliance with the goal to raise nutritional literacy and education on healthier food habits, to empower and orientate consumer's decision-making and to adopt more active lifestyles, and to help them select products in line with those healthier lifestyles.

Top 15 company shares of packaged food – global brand owner: % value 2013-2017
Company 2013 2014 2015 2016 2017
Grupo Nutresa SA 12.0 12.4 12.8 13.1 13.4
Alpina Productos Alimenticios SA 6.0 6.0 6.1 6.1 6.3
Cooperativa Lechera Colanta SA 4.2 5.1 5.2 5.2 5.4
PepsiCo Inc 3.0 3.2 3.5 3.6 3.8
Colombina SA 2.6 2.8 2.9 2.9 3.0
Productos Naturales de la Sabana SA 2.4 2.2 2.6 2.7 2.8
Nestlé SA 2.7 2.7 2.7 2.7 2.7
Team Foods Colombia SA 2.2 2.3 2.3 2.3
Grupo Bimbo SAB de CV 1.9 2.1 2.2 2.3 2.3
Arroz Diana SA 1.8 2.1 2.2 2.2 2.3
Productos Ramo SA 1.7 1.8 1.8 1.8 1.9
Molinos Roa SA 2.0 1.7 1.7 1.7 1.7
Grasco Group 1.4 1.4 1.5 1.5 1.5
Mondelez International Inc 1.1 1.1 1.2 1.3 1.3
Artisanal 12.6 12.1 11.8 11.5 11.1
Private Label 5.5 5.7 5.7 5.9 6.0
Others 20.3 18.9 17.6 17.4 16.8
Source: Euromonitor International 2018.

Opportunities

With more double income homes and increased purchasing power, Colombians are changing their eating habits. Packaged foods that used to be perceived as higher class, such as higher quality meats, bakery and dairy products, are now being purchased on a regular basis.

Furthermore, Colombian women have increased access to higher education, leading to increased employment and more spending power in the household.

The Colombian market saw an increased new packaged food entering the market. From January 2013 to December 2017, there were 5,856 launches of packaged food products in Columbia. Most of these occurred in the bakery category with 1,459 products launches, 944 product launches were in the dairy category, and 859 were in the snacks category.

Top 10 categories of new product launches between January 2013 and December 2017
Category 2013 2014 2015 2016 2017
Bakery 212 178 210 328 531
Dairy 122 133 143 192 354
Snacks 100 120 142 175 322
Processed fish, meat & egg products 52 43 64 91 215
Chocolate confectionery 82 65 70 95 128
Sugar & gum confectionery 62 68 66 83 138
Fruit & vegetables 23 37 28 67 132
Breakfast cereals 48 27 31 75 98
Sweet spreads 21 25 28 44 80
Meals & meal centers 22 18 20 37 49
Source: Mintel Global New Products Database (GNPD) 2018

Dairy

According to Food and Agriculture Organization (FAO), Colombia is the fourth largest milk producer in Latin America, with an approximate volume of 6,700 million liters annually, exceeded only by Brazil, Mexico and Argentina.

Over the past five years dairy retail sales of dairy products in Colombia has grown by a CAGR of 4%, because of the growth in the Colombian economy and the increase in income levels of Colombians.

This sector's sales increased from US$2.4 billion in 2013 to US$2.9 billion in 2017, and sales volume experienced an increase from 2.19 million to 2.23 million tonnes.

Colombia dairy market sizes historic - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Drinking milk products 1,529.9 1,561.6 1,610.7 1,652.8 1,712.3 2.9
Yoghurt and sour milk products 374.7 394.3 416.5 437.0 462.8 5.4
Cheese 253.4 276.4 294.0 312.2 336.1 7.3
Other dairy 179.9 194.4 213.2 226.5 244.8 8.0
Butter and margarine 144.4 145.4 145.3 146.6 148.1 0.6
Total dairy 2,482.3 2,572.1 2,679.6 2,775.1 2,904.1 4.0

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

Due to the variety of geographical regions, cultural habits of their populations and consumers' disposable of income, there is no homogenous consumption of dairy products.

While dairy consumption undoubtable increased in absolute terms, different categories of dairy products have been more successful than others, and many products still have growth opportunities.

From January 2013 to December 2017, there were 944 launches of dairy products in Columbia. Top claim was low/n/reduced fat with 273 new products, top to storage was in the chilled category (593), top package type was a tub container (256), top flavour was unflavoured/plain (546) and the market leader in dairy category was Alpina Productos Alimenticios with 94 new products.

New Dairy products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
Low/no/reduced fat 273
Low/no/reduced allergen 195
Low/no/reduced lactose 165
Ease of use 148
Kosher 136
Storage
Chilled 593
Shelf stable 351
Frozen
Top five package types
Tub 256
Flexible 223
Carton 118
Skinpack 100
Bottle 97
Top five flavours
Unflavoured/plain 546
Strawberry 44
Peach 38
Chocolate 30
Vanilla/vanilla bourbon/vanilla Madagascar 28
Top ten companies
Alpina Productos Alimenticios 94
Colanta 51
Almacenes Exito 43
Nestlé 28
Koba Colombia 27
Productos Naturales de la Sabana 26
Danone Alquería 25
Parmalat 24
Del Vecchio 17
Almacenes éxito 16
Branded 784
Private Label 160
Source: Mintel GNPD 2018

Baked goods

The baked goods category remains the leader in the packaged food sector; however, the category remains largely dispersed due to the importance of artisanal players, which will account for 67% of value sales in 2017.

According to Euromonitor International, this dominant share is the result of the importance of small independent bakeries, which have the advantage of proximity to consumers, fresher products and more product offerings to satisfy different consumer preferences.

Colombia bakery goods market sizes historic - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Bread 1,403.7 1,428.9 1,465.0 1,511.8 1,547.7 2.5
Cakes 224.2 257.2 277.3 293.2 311.1 8.5
Dessert mixes 58.4 58.2 57.5 56.3 57.6 −0.3
Frozen baked goods 0.9 1.0 0.9 0.9 1.0 2.7
Pastries 76.6 81.7 84.1 84.9 89.3 3.9
Total baked goods 1,763.7 1,826.9 1,884.8 1,947.1 2,006.7 3.3

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

From January 2013 to December 2017, there were 1,459 launches of baked goods products in Columbia. Top claim was low/n/reduced transfat with 234 new products, top to storage was in shelf stable category (1,329), top package type was a flexible container (268), top flavour was unflavoured/plain (477) and the market leader in baked goods category was Bimbo with 33 new product.

New bakery products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
Low/no/reduced transfat 324
Ease of use 287
Ethical - environmentally friendly package 184
Seasonal 169
Wholegrain 167
Storage
Shelf stable 1,329
Chilled 111
Frozen 19
Top five package types
Flexible 268
Flexible stand-up pouch 34
Carton 9
Flexible sachet 9
Skinpack 8
Top five flavours
Unflavoured/plain 477
Chocolate 192
Cheese 66
Vanilla/vanilla bourbon/vanilla Madagascar 58
Butter 43
Top ten companies
Bimbo 33
Compañia de Galletas Noel 25
Almacenes Exito 21
Colombina 18
Koba Colombia 16
PepsiCo 15
Mondelez 14
Productos Ramo 11
Harinera del Valle 10
Comapan 9
Branded 1,226
Private Label 233
Source: Mintel GNPD 2018

Rice, pasta and noodles

The growth in the rice, pasta and noodles category in 2017 was largely driven by noodles, a category which is attracting the attention of Colombian consumers. The rice, pasta and noodles category posted a compounded annual growth rate of 4.6% between 2013 and 2017.

Colombia rice,pasta and noodles market sizes historic - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Rice 989.7 1,011.8 1,067.4 1,109.0 1,161.2 4.1
Pasta 195.8 207.2 220.3 236.2 254.9 6.8
Noodles 3.1 4.7 6.0 7.3 8.4 28.3
Total rice, pasta and noodles 1,188.60 1,223.60 1,293.70 1,352.60 1,424.50 4.6

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

In Colombia, instant noodles saw a great success and a CAGR of 28.3% because they promoted as a complete meal or a side dish.

Within noodles category, plain and chicken remained the most popular flavours in Colombia, according to Mintel GNPD, followed by spinach and beef. Manufacturers also offer "gallina criolla" (free range chicken) flavoured noodles, with this type of meat said to have a more intense flavour than non-free-range chicken.

From January 2013 to December 2017, there were 341 launches of rice, pasta and noodles products in Columbia. Top claim in this category was all natural with 57 new products, top to storage was in the chilled category (325), top package type was a flexible container (268), top flavour was unflavoured/plain (241) and the market leader in rice, pasta and noodles category was Productos Alimenticios Doria with 33 new product.

New rice, pasta and noodles products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
All natural product 57
Vitamin/mineral fortified 56
Low/no/reduced allergen 55
Gluten free 54
No additives/preservatives 46
Storage
Chilled 325
Shelf stable 9
Frozen 7
Top five package types
Flexible 268
Carton 34
Jar 9
Tray 9
Flexible sachet 8
Top five flavours
Unflavoured/plain 241
Chicken 40
Spinach 12
Meat 6
Vegetable 4
Top ten companies
Productos Alimenticios Doria 33
Almacenes Exito 25
Harinera del Valle 21
Barilla/Barilla G. e R. Fratelli Societa per Azioni 18
Koba Colombia 16
Arroz Caribe 15
Alimentos El Dorado 14
Diana Corporación 11
Uniarroz 10
Pastificio Bolognese 9
Branded 258
Private Label 83
Source: Mintel GNPD 2018

Processed meat and seafood

Processed meat and seafood recorded a compounded annual growth rate of 5.9% from 2013 to 2017. Processed seafood category suffered from the mercury crisis in canned tuna and an alert from the World Health Organization regarding the health effects of excessive consumption of processed meat.

Colombia processed meat and seafood market sizes historic - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Processed meat 1,732.7 1,901.9 2,068.6 2,210.7 2,369.3 8.1
Shelf stable meat 110.3 116.9 129.3 137.2 145.7 7.2
Chilled processed meat 1,516.9 1,652.6 1,796.1 1,920.6 2,059.2 7.9
Frozen processed meat 105.4 132.4 143.3 152.9 164.5 11.8
Processed seafood 650.5 729.8 568.6 600.6 623.8 −1.0
Shelf stable seafood 638.7 717.3 555.4 586.4 608.5 −1.2
Chilled processed seafood
Frozen processed seafood 11.8 12.5 13.2 14.1 15.3 6.7
Total processed meat and seafood 2,383.1 2,631.7 2,637.3 2,811.3 2,993.2 5.9

Source: Euromonitor International 2018.

*CAGR: compound annual growth rate

Frozen processed meat remained the fastest growing category with CAGR of 11.8% from 2013 to 2017; it is a fraction of retail sale of chilled processed meat, which registered a CAGR of 7.9%.

Columbians have growing demands on their schedules as many citizens go back to work, more women enter the workforce, and an increasing number of individuals seek higher education, as encouraged by governmental initiatives. Together, these shifts have increased sales of ready-to-eat meals as consumers turn to time saving meal alternatives.

According to Mintel GNPD, there were 441 new products of processed meat and seafood launched in the Colombian market between January 2013 and December 2017.

Top claim in this category was ease of use with 165 new products, top to storage was in the chilled category (239), top package type was a skinpack (197), top flavour was unflavoured/plain (241) and the market leader processed meat and seafood category was Indústria de Alimentos Zenú with 33 new product.

New processed meat and seafood products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
Ease of use 156
Premium 73
Convenient packaging 64
High/added protein 56
Ethical - animal 55
Storage
Chilled 239
Shelf stable 163
Frozen 39
Top five package types
Skin pack 197
Can 136
Flexible 4
Tray 23
Flexible sachet 22
Top five flavours
Unflavoured/plain 241
Smoke 40
Tomato 12
Vegetable 6
Grilled/chargrilled 4
Top ten companies
Indústria de Alimentos Zenú 33
Almacenes Exito 25
Carnes Casablanca 21
Colanta 18
Almacenes Éxito 16
Koba Colombia 15
Alimentos Cárnicos 14
Cencosud 11
Carnes Frias Enriko 10
Hormel Foods 9
Branded 340
Private Label 101
Source: Mintel GNPD 2018

Snacks

Colombian consumers are increasingly aware of the need to adopt healthier eating habits. Manufacturers have responded to such demands by rapidly introducing healthier products that are low in sugar, high in protein, low in sodium, fat-free or free from trans fats.

Healthy snack bars are becoming increasingly popular. Innovations in sweet and savory snacks have increased protein, reduced chemicals, and fewer additives and trans fats.

Colombia snacks market sizes historic - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Savoury biscuits 352.9 362.9 372.4 381.4 394.5 2.8
Salty snacks 264.9 290.3 317.0 336.9 361.9 8.1
Other savoury snacks 83.5 92.5 105.1 112.3 123.8 10.3
Nuts, seeds and trail mixes 54.1 61.0 64.6 68.5 72.8 7.7
Popcorn 23.0 25.2 27.9 29.9 31.9 8.5
Pretzels
Total savoury snacks 778.5 831.9 887.0 928.9 985.0 6.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Snacks in Colombia enjoys very active new product development in recent years, which is necessary to maintain consumer interest, especially as the category tends to lose dynamism in competition with fruit snacks and snack bars, which are more in line with the health and wellness megatrend.

Euromonitor International notes that the value sales of savoury snacks saw a rise of 6.1% on CAGR basis from 2013 to 2017. Higher growth continues to be driven by categories under other savoury snacks that have recently entered the marketplace like rice snacks and popcorn.

It is worth noting that savoury snacks growth will be affected by a smaller portion of the dried fruit category mostly comprising berries that, due to their healthy and antioxidative attributes are captivating consumers' interest as health and wellness becomes mainstream.

According to Mintel GNPD, there were 859 new products of snacks products launched in the Colombian market between January 2013 and December 2017.

Top claim in this category was low/no/reduced trans-fat with 189 new products, top storage type was shelf stable category (791), top package type was a flexible (649), top flavour was unflavoured/plain (145) and the market leader in the snacks category was PepsiCo with 89 new products.

New snacks products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
Low/No/Reduced Transfat 189
No Additives/Preservatives 168
Ease of Use 151
Social Media 146
Low/No/Reduced Cholesterol 125
Storage
Shelf stable 791
Frozen 57
Chilled 11
Top five package types
Flexible 649
Flexible stand-up pouch 96
Composite 41
Flexible sachet 33
Carton 13
Top five flavours
Unflavoured/plain 145
Cheese 63
Banana (Plantain) 27
Salt/Salted 26
Pork 20
Top ten companies
PepsiCo 89
Almacenes Exito 37
Compañía Internacional de Alimento 35
Compañia Nacional de Chocolates 31
Kellogg 24
Pringles 24
Koba Colombia 21
Comestibles Ricos 20
Terrafertil 18
Manitoba 16
Branded 732
Private Label 127
Source: Mintel GNPD 2018

Confectionery

Sales of indulgence products such as chocolate have recorded some of the biggest increases in Colombia over the past few years, in line with rising disposable incomes. The confectionery sector also benefits from the fact that Colombia's population is young.

According to Mintel data, as in other markets, confectionery sales in Colombia are influenced by health and wellness trends, which is reflected in new products that are marketed as low-sugar and fat-free alternatives to traditional confectionery.

In Colombia, the taste preference has historically encouraged the addition of sugar to chocolate confectionery to meet consumers' expectations. Consequently, chocolate in Colombia's confectionery has been traditionally associated with a sweet flavour.

Colombia confectionery market sizes historical - retail sales in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Chocolate 164.7 172.8 188.2 199.1 212.2 6.5
Chocolate pouches and bags 25.5 26.7 28.3 29.4 31.4 5.3
Boxed assortments 8.5 8.9 16.0 16.7 17.6 20.0
Chocolate with toys 5.0 5.3 5.7 7.8 9.1 16.1
Countlines 41.5 45.5 52.8 56.1 60.1 9.7
Seasonal chocolate 5.1 5.6 5.7 6.0 6.4 5.8
Tablets 79.1 80.8 79.7 83.1 87.6 2.6
Gum 64.0 70.0 72.7 75.4 79.2 5.5
Bubble gum 9.5 9.9 9.5 9.9 10.3 2.0
Chewing gum 54.6 60.1 63.2 65.6 68.9 6.0
Sugar confectionery 198.5 209.2 217.0 229.0 238.0 4.6
Boiled sweets 32.1 33.0 33.9 34.2 34.4 1.7
Lollipops 52.8 54.7 55.1 56.4 57.5 2.2
Medicated confectionery 25.7 28.4 31.7 37.4 41.4 12.7
Total confectionery 427.1 451.9 477.9 503.5 529.4 5.5

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Most recently, however, the growth is being driven by consumers that are increasingly neglecting sugar and becoming more aware of the nutritional and functional properties of chocolate. Furthermore, Colombian consumers are increasingly looking for more chocolate and less sugar, boosting premium brands on the way.

New confectionary products analysis based on launches from January 2013 to December 2017
Feature Launch Count
Top five claims
Seasonal 136
Children (5-12) 101
Low/No/Reduced Allergen 78
Low/No/Reduced Sugar 77
Gluten Free 75
Storage
Shelf stable 856
Chilled 1
Top five package types
Flexible 600
Carton 125
Flexible sachet 29
Flexible stand-up pouch 21
Rigid box 20
Top five flavours
Unflavoured/plain 477
Strawberry 192
Fruit 66
Hazelnut 58
Orange 43
Top ten companies
Colombina 150
Compañia Nacional de Chocolates 94
Comestibles Aldor 63
C.I. Super de Alimentos 40
The Hershey Company 29
Mondelez 27
Ferrero 25
Lindt & Sprüngli 21
Mars 16
Nestlé 16
Branded 809
Private Label 49
Source: Mintel GNPD 2018

Distribution channels

Euromonitor International report that the grocery shopping habits of Colombian consumers are changing due to the rapid expansion of modern grocery distributors, especially discounters, which has changed the grocery landscape by the way they displayed products, the location of their outlets and the payment methods by receiving only cash for example.

Euromonitor International also notes that the revolution of discounters has made the larger format stores (hypermarkets and supermarkets) change and adapt to new strategies. In addition, both hypermarkets and supermarkets have made significant investments in their technological platforms to increase their presence on the internet.

Colombia distribution channels historical retail value sales by % breakdown
Outlets 2013 2014 2015 2016 2017 CAGR* % 2013-2017
Grocery retailers 97.3 97.1 97.6 97.5 97.8 0.1
Modern grocery retailers 34.7 35.6 36.3 36.8 37.2 1.8
Convenience stores 0.4 0.4 0.5 0.5 0.5 5.7
Discounters 0.8 1.6 1.9 2.2 2.5 33.0
Forecourt retailers 0.2 0.2 0.2 0.2 0.2 0.0
Hypermarkets 16.7 16.7 16.8 16.7 16.6 −0.2
Supermarkets 16.6 16.7 16.9 17.2 17.4 1.2
Traditional grocery retailers 62.6 61.4 61.2 60.8 60.5 −0.8
Food/drink/tobacco specialists 12.2 11.6 11.2 10.9 10.7 −3.2
Independent small grocers 49.7 49.1 49.3 49.2 49.1 −0.3
Other grocery retailers 0.7 0.7 0.7 0.7 0.7 0.0
Non-grocery specialists 1.9 2.2 1.8 1.9 1.7 −2.7
Health and beauty specialist retailers 1.1 1.1 1.0 1.0 1.0 −2.4
Other foods non-grocery specialists 0.8 1.1 0.8 0.8 0.7 −3.3
Mixed retailers 0.7 0.7 0.6 0.6 0.6 −3.8

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Conclusion

Euromonitor International has reported that retail sales value of the packaged food market in Colombia reached nearly US$11.6 billion in 2017. That ranks Colombia as the 4th largest packaged food market in Latin America. It is also the 31th largest retail of packaged food market in the world, larger than Portugal or Finland as examples.

Euromonitor International forecasts the value of retail sales in packaged food to increase to US$12.6 billion by 2022. High growth products in the forecast include savory snacks, baby food, sweet biscuits, snack bars and fruit snacks, ready meals, ice cream, breakfast cereals and confectionery.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

National Institute of Food and Drug Monitoring and Control
(INVIMA – Instituto de Vigilancia de Medicamentos y Alimentos (in Spanish only))
Food and Beverages Division
Sr. Javier Fernando Alvarado, Coordinator
Office of International Affairs
Email: ofi-ainternacionales@invima.gov.co
Carrera 10 No. 64-28
Bogotá, Colombia.
Telephone: +57-1-294-8700 extension 3885
www.invima.gov.co

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

Resources

Sector Trend Analysis: Packaged Food Trends in Colombia
Global Analysis Report

Prepared by: Karim Zarrouki, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018).

Photo Credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Road, Tower 5, 3rd floor
Ottawa, Ontario
Canada, K1A 0C5
Email: aafc.mas-sam.aac@canada.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.

Report a problem on this page
Please select all that apply:
Date modified: