Executive Summary

Sep 2019
Prospects
Innovation and education provide positive growth prospects

Cheese continues to see positive sales growth, with soft cheese seeing the highest value increases, although per capita consumption is considered low in the country. Colombians are more likely to eat cheese at breakfast, but rarely as a snack or as an ingredient for other preparations, which hinders expansion.

Lower unit prices and wider availability and variety favour soft cheese

As cheese is seen as an expensive product type by many consumers, price is a major determiner of demand. Long dry seasons provide poor conditions for milk production, which makes producing cheese, especially hard cheese, more expensive.

Innovation focuses on new varieties rather than HW cheese

HW cheese remains underdeveloped, with only reduced fat options enjoying a significant presence. However, demand is limited.

Competitive Landscape
Cooperativa Lechera Colanta leverages on a diverse portfolio to retain clear lead

Cooperativa Lechera Colanta remains the leading player in 2019. The company is seeing moderate retail value sales growth as the competition from the likes of Alpina increases.

Alpina Productos Alimenticios invests in new product development to challenge

With a narrower cheese portfolio than the leader, Alpina Productos Alimenticios has invested in new product development and innovation, including the launch of Quesito Alpina, a soft cheese focused on family consumption. The new offering, which comes in convenience packaging, is supported by strong advertising and wide availability in supermarkets, but also some discounters.

Expansion of modern grocery retailing aids private label penetration

Private label is still unable to seriously threaten the positions of the leading brands in cheese, despite the positive performance of discounters’ lines like Latti by D1. Discounters offer a limited array of products with the focus on soft cheese.

Prospects
Move towards more natural and non-dairy alternatives hits fresh milk demand

Cow’s milk is seeing a slow decrease in retail volume sales due to saturation, with high household penetration in Colombia. While there was some innovation in 2018, such as Productos Naturales de la Sabana’s Alquería Más, a fortified milk promoted as offering the flavour of full-fat milk for the whole family, no major innovation was witnessed in milk in 2019.

Legislative limitations encourage informal trade in milk

There is a high level of informal sales in drinking milk products in Colombia. According to trade sources, the informality rate is close to 50%.

Wider offer and healthier perception spur fast growth in milk alternatives

Milk alternatives, especially “other” milk alternatives, is registering rapid retail volume and current value growth in Colombia. In particular, almond milk is benefiting from an increasing number of brands with wide price ranges.

Competitive Landscape
Cooperative Lechera Colanta leverages on price and availability advantages

Three domestic companies continue to lead drinking milk products in 2019. Cooperativa Lechera Colanta remains the top player with the support of a solid distribution network.

Modern grocery retailers expand their private label offer to generate traffic

Private label continues to see rapid retail value sales increases, and healthy share growth, in 2019. This performance is driven by discounters offering shelf stable milk in pouches, but more often in brick liquid cartons at very low per litre prices.

Players expand offer in milk alternatives and see share growth

Rosmi, Laboratorio Franco Colombiano Lafrancol and Team Foods Colombia were among the players to grow their overall retail value share in 2019. Their participation in milk alternatives, the fastest-growing category, contributed significantly to their positive performances.

Prospects
Health positioning and new consumption occasions offer way to faster growth

Yoghurt is seeing slightly faster retail volume and value growth in 2019, compared with 2018, although rates remained low-to-moderate. In Colombia, yoghurt has low penetration.

Free from lactose versions enhance yoghurt’s health positioning

FF yoghurt continues to struggle to grow demand in 2019. This is partly due to exit of key brands like Vaalia and Activia, with no key new competitors filling the void.

Newer varieties add dynamism to yoghurt and sour milk products

Both yoghurt and sour milk products have seen the entry of new varieties. Greek yoghurt is becoming increasingly popular as it is perceived to offer a good source of protein and low fat content.

Competitive Landscape
Alpina seeks to consolidate by building brand awareness

Traditional dairy companies Alpina Productos Alimenticios and Cooperativa Lechera Colanta continue to occupy the top rankings. Alpina aims to consolidate its dominance in the category by building brand awareness.

El Pomar grows value sales via image and distribution developments

Industria Pasteurizadora y Lechera El Pomar has invested heavily in production facilities and revamping the image and presentation of its brands and products. The new image reflects more artisanal and natural concepts.

Grupo Gloria seeks wider reach for new yoghurt and kumis references

The Peruvian enterprise Grupo Gloria entered Colombia in 2004 with the acquisition of the domestic company Algarra. Until 2018, Algarra was the player’s only yoghurt brand, with distribution limited mainly to central Colombia.

Prospects
Strong competition and low innovation hamper chilled and shelf stable desserts

Chilled and shelf stable desserts, especially the shelf stable format, struggles to grow demand and remains a medium-sized category. Significant innovation has not been observed in the category.

Condensed milk benefits from launch of healthier versions

The health and wellness trend continues to impact the offer of condensed milk. Condensed milk in Colombia includes arequipe, a highly popular and traditional Colombian dulce de leche that can be used as an ingredient for desserts, spread over bread, savoury biscuits or simply eaten with a spoon.

Campaigns promote wider usage potential of cream

Cream remains a popular and important ingredient used in numerous preparations. For example, it is used in desserts and vegetable and other soups like ajiaco, a traditional Colombian offering.

Competitive Landscape
Packaging and flavour developments sustain interest in Alpina

Alpina Productos Alimenticios continues to gain retail value share to consolidate its leadership of other dairy in 2019. The company benefits from a strong and wide presence in the category in Colombia.

Nestlé grows value share through packaging and line extension

Nestlé de Colombia remains an important player in other dairy, especially in plain condensed milk and cream, although it is also present in coffee whiteners. The long-standing presence and popularity of La Lechera in Colombia, along with innovations in packaging, such as easy-open can ends and stand-up pouches with caps that allow better dosage control, contributed to gradual retail value share growth in other dairy towards the end of the review period.

Convenience favours other dairy in traditional grocery retailers

Other dairy products are stocked by modern and traditional grocery retailers in Colombia. However, traditional grocery retailers, especially independent small grocers, but also “other” grocery retailers” (kiosks and markets), dominate retail value sales.

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Dairy in Colombia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Colombia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Colombia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Colombia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Colombia?
  • What are the major brands in Colombia?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Colombia - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Weather cycles and income levels influence butter in Colombia
Switch to vegetable oils dampens demand for cooking fats
HW butter and spreads benefits from healthier lifestyle trend

COMPETITIVE LANDSCAPE

Team Foods Colombia diversifies to tap into health and convenience trends
Low prices, health positioning and long reach support spread of Gustosita margarine
Strength of traditional brands hinders private label’s progress

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Innovation and education provide positive growth prospects
Lower unit prices and wider availability and variety favour soft cheese
Innovation focuses on new varieties rather than HW cheese

COMPETITIVE LANDSCAPE

Cooperativa Lechera Colanta leverages on a diverse portfolio to retain clear lead
Alpina Productos Alimenticios invests in new product development to challenge
Expansion of modern grocery retailing aids private label penetration

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Move towards more natural and non-dairy alternatives hits fresh milk demand
Legislative limitations encourage informal trade in milk
Wider offer and healthier perception spur fast growth in milk alternatives

COMPETITIVE LANDSCAPE

Cooperative Lechera Colanta leverages on price and availability advantages
Modern grocery retailers expand their private label offer to generate traffic
Players expand offer in milk alternatives and see share growth

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Strong competition and low innovation hamper chilled and shelf stable desserts
Condensed milk benefits from launch of healthier versions
Campaigns promote wider usage potential of cream

COMPETITIVE LANDSCAPE

Packaging and flavour developments sustain interest in Alpina
Nestlé grows value share through packaging and line extension
Convenience favours other dairy in traditional grocery retailers

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Health positioning and new consumption occasions offer way to faster growth
Free from lactose versions enhance yoghurt’s health positioning
Newer varieties add dynamism to yoghurt and sour milk products

COMPETITIVE LANDSCAPE

Alpina seeks to consolidate by building brand awareness
El Pomar grows value sales via image and distribution developments
Grupo Gloria seeks wider reach for new yoghurt and kumis references

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Colombia - Industry Overview

EXECUTIVE SUMMARY

Back to basics movement as consumers shift or return to more natural products
Impulse products suffer from health trend and modern retail opportunities
Reformulation strategies create healthier options and revive interest in products
Private label benefits from the expansion of discounters in tough economic climate
Value over volume growth as more sophisticated offer increases unit prices

FOODSERVICE

Sales to Foodservice
Fast growth in plain noodles sales to foodservice as Asian cuisine grows in popularity
Burger foodservice boom spurs demand for frozen processed potatoes
Demand for fried food and burgers stimulates edible oils sales to foodservice
Consumer Foodservice
Delivery apps change the way consumers interact with foodservice
Extended serving times and new menus lure consumers
Independents offer innovation and new experiences to recover from tough economic conditions

CATEGORY DATA

Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources