The packaged food industry fared better in comparison with the review period average in volume terms in spite of the adverse weather conditions that hit the country during the last part of 2010 and that were thought would have a significant impact on prices in particular during the first half of 2011. However, that did not happen and manufacturers were able to make moderate price increases during the year. The market’s good performance was also supported by an increase in household consumption, wider variety in terms of packaging formats so as to reach a growing number of consumers and innovative products, all of which led to dynamism in terms of volume sales.

Colombian consumers are increasingly aware of the need to adopt healthier eating habits in spite of their frantic lifestyles, but without sacrificing indulgent flavours, and manufacturers have been responding accordingly. Companies are accelerating the introduction of healthier products without sugar, with a low fat content, free from trans fats and reduced in sodium. Sweet and savoury snacks, biscuits, chilled meats and snack bars were some of the categories which saw new developments in this field.

Colombia Packaged Food Industry

Published: March 2012
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Local companies registered positive performances in 2010, posting stronger growth rates than foreign players. In GBO terms, Grupo Nacional de Chocolates, which is present in almost all categories within the packaged food industry, held the largest share of sales, followed by Alpina Productos Alimenticios SA and Cooperativa Lechera Colanta SA. The long tradition of domestic brands, innovative products and presentations, along with strengthening distribution, are some of the factors behind their success.

Small independent grocers and large retailers dominate distribution:
Within the packaged food industry the distribution landscape is dominated by small independent grocers and supermarkets/hypermarkets, which together account for the vast majority of sales. However, in the past two years convenience stores have increased their presence, mainly in the large cities and in areas which are home to middle and upper-income consumers, which is generating a battle for space on retail shelves, leading manufacturers to develop smaller formats.

Volume growth set to be stronger over the forecast period:
The forecast period is set to witness stronger volume growth than that seen over the review period as it is expected that price increases will remain moderate. The forecast period will see considerable activity with regard to the introduction of novelties in terms of packaging and ingredients, attracting consumers that are expecting an improvement in their income in line with the positive figures predicted for Colombian GDP. However, it is important to highlight that the threat of a strong rainy season during the last months of 2011 still looms, which may affect the performance of the industry at the beginning of the forecast period due to a delay in the reconstruction of infrastructure in some regions affected by the rainy season of 2010, which may pose some challenges to distribution.