Vending in Colombia

2020 IMPACT

COVID-19 crisis hits vending hard

Vending remained a small but positively performing channel in 2019 as it maintained its traditional offer of packaged food products such as confectionery and packaged drinks, including carbonates. However, the COVID-19 crisis hit the channel hard across captive, semi-captive and non-captive environments.

Slower pace of life undermines demand

The generally slower pace of life during the pandemic was another important factor undermining demand through vending in 2020. Busy consumers looking for products for on-the-go consumption comprise a key element of the vending channel’s core consumer base.

Novaventa maintains lead

Having gained the lead from Autosnack in 2018, Novaventa remained the largest player in vending in 2020. The company has benefited from its Novaventa al Paso programme, which involves locating vending machines containing major brands from Grupo Nutresa in high-traffic public spaces.

RECOVERY AND OPPORTUNITIES

Long-term shift to remote working poses a threat to vending

While there is expected to be a revival of hectic consumer lifestyles as the immediate threat from COVID-19 wanes, the pandemic is set to have an enduring impact on social and economic activity. One key influence of the COVID-19 crisis is likely to be a lasting shift towards working from home now that the necessary routines and technologies are in place and both businesses and employees have come to appreciate its benefits.

Growing importance of cashless payment

Before the COVID-19 pandemic, Colombia was witnessing the rapid installation of vending machines throughout the country, both in captive and semi-captive environments. Players were importing a greater volume of machines, although Colombian companies also started to manufacture them nationally at cheaper prices, bringing in technological improvements and innovations.

Adapting the product offer

While vending continues to be dominated by packaged foods and packaged drinks, addressing demand for convenient on-the-go snacks such as carbonates and chocolate bars, players are looking at ways to improve their offer and adapt to the increasing demand for electronic devices such as inexpensive headphones, chargers, and batteries. Such vending machines, which are found in heavy traffic locations such as terminals and airports, are expected to become an increasingly prominent feature of the channel during the forecast period.