Bogota and Cundinamarca are on track to become one of the main Latin-American development and production hubs in cosmetic and personal care products. This is largely due to the dynamism of the exports and the continuous attraction and expansion of foreign companies that invest in this sector in Colombia.
Colombia is the fourth largest market for cosmetics and personal care in Latin America and also the fourth exporter for these segment in the region. With a forecasted annual average growth rate (CAGR) of 11,8% for 2016-2020, it is prognosticated that this industry will keep driving part of the manufacturing sector in Colombia.
In addition, the per capita expenditure has a growth potential of 113%, when compared to the region's most developed market (Brazil) and after isolating the purchase power differences.
Bogota is the main center of the cosmetic industry, concentrating 40% of the manufacturers and 53% of the marketers of the sector. In addition, Bogota has a smart specialization strategy that brings into focus the productive approach of the city towards biocosmetics. This aspect offers elements of benefit for companies in the sector.
Due to the increase in its market size, the cosmetic and personal care segment has been identified as one of the strategic sectors for the Bogota-region and the country. Between 2008 and 2014, the sector reported a compound annual growth rate (CAGR) of 5.3%. Furthermore, it's an employment engine for Colombia. According to the National Department of Statistics (DANE), more than one million people base their livelihood directly on these industries.
- Substitution of imported chemical products and excipients, with potential for local production.
- Establishment of packaging production facilities, in order to mitigate the high import reliance on these products.
- Biodiversity: Development and research of unique and differentiated natural ingredients, with production opportunities. (Second most biodiverse county: 56.000 species of plants, 18.000 are endemic)