The food and drinks market in Bogota and Colombia is constantly growing

October 06, 2015

Colombia has a great potential for growth in the sector, with Bogota as its largest and most dynamic market.

It is estimated that the Colombian food and beverage sectors will reach annual sales of more than USD 21,000 million in 2018.

Companies in the sector established in Bogota and neighboring regions reported sales of USD 5,000 million in 2014, which is 42% of the country's sales.

It is expected that the food and beverage sectors in Colombia will continue to grow in coming years, with Bogota as its driving engine. It is estimated that the sector will have annual sales of more than USD 21,000 million in the country in 2018. This means that the consumption of processed food will grow by approximately 10.3% per year, while the beverage market will grow at an annual rate of 8% in coming years.

Colombia stands as one of the markets with high potential of industry growth in Latin America: while per capita consumption of processed food in Latin America was USD 505.40 in 2014, it only reached USD 336.60 in Colombia. Among the factors that indicate potential growth is the rise in income in Colombian homes, which not only expands the base for the consumption of processed food in general, but also the demand for premium products.

In this scenario, Bogota is the natural setting to drive the industry's growth. Juan Gabriel Pérez, Executive Director of Invest in Bogota, explained: "In addition to having highly specialized human resources, with 16% of the Colombian population and an increased annual consumption rate per home at 5.1%, Bogota is also the main center of consumption in the country. Sales totaled USD 5,000 million in this sector in 2014 for Bogota and the region, which represents 42% of the national sales. Moreover, 41 of the top 100 international companies are located in the capital region, including major players such as: FEMSA, SABMiller, PARMALAT, BIMBO, PepsiCo, Kellogg´s, Aje, Dole and Danone, to name a few.”

Pérez continues: "This sector is significant in promoting investments in Bogota. Investments from companies like Dole Food, which last year invested nearly USD 18 million to build and operate its plant in Madrid, Cundinamarca, energize the Colombian processed food market with cutting-edge technologies. This implies a high component of innovation and transfer of knowledge and technology to the city."

María Claudia Lacouture, President of ProColombia, says: "This is one of the sectors with the greatest potential and interest to attract foreign investors, who find a dynamic domestic market with an export platform to territories in the Americas, Europe, and Asia. Between 2010 and 2015, and thanks to ProColombia's efforts, these factors were influential in the arrival of 25 new projects from 14 countries, including Germany, Argentina, Belgium, Canada, Chile, Spain, the United States and Italy, among others, with business totaling USD 570 million, and which according to business owners, generated more than 8,200 jobs."