DAIRY PRODUCTS AND ALTERNATIVES IN COLOMBIA - ANALYSIS

Country Report | Sep 2023

EXECUTIVE SUMMARY Market Sizes

Dairy products and alternatives in 2023: The big picture Sales of Dairy Products and Alternatives
Retail Value RSP - COP billion - Current - 2009-2028
Dairy products and alternatives is recording another year of sluggish retail volume
growth in 2023, in response to low production and supply chain issues. High transport
costs, the increase in the price of raw materials and worker shortages have caused 13.966 Forecast
significant increases in dairy prices. Even though the economy is showing notable signs 20.000
of recovery in 2023, price increases remain an issue alongside currency devaluation.
With the majority of consumers in the country staying at home more often and
adopting a hybrid lifestyle, Colombians appear to be shifting towards a more flexible
pattern of eating at times that are convenient to them. This has brought about a wave 15.000
of new dairy pack sizes and product formats. Health and nutrition, as well as
indulgence, are also key trends fuelling sales in categories such as cheese, yoghurt, and
plant-based milk drinks.
10.000

Key trends in 2023

Dairy products and alternatives with functional benefits in terms of gut health, 5000
digestion and immune support have experienced significant price increases. However,
they remain popular with consumers taking a preventative health stance and looking to
foods with nutritional benefits. Shrinkflation has been adopted by dairy manufacturers
as a strategy to maintain retail prices and incentivise consumers to purchase. Price 0
sensitivity has heightened the competition in the dairy landscape. Meanwhile, cost 2009 2023 2028
pressures have made consumers wary of trying newer plant-based options, which can
be found on the shelves of supermarkets and hard discounters. High protein dairy
products are entering the yoghurt category as players respond to the growing trend of Sales Performance of Dairy Products and Alternatives
skipping meals and snacking between meals. % Y-O-Y Retail Value RSP Growth 2009-2028

Competitive Landscape 9.9% Forecast

Co-branding continues as a popular trend in Colombia, as seen with Alpina joining 20%
forces with Compania Nacional de Chocolates. Domestic manufacturers continue to
emphasise the local economic benefits of purchasing their brands. Smaller local dairies
are able to capitalise on this trend while imported brands are having a challenging time
competing in some categories. Plant-based dairy is witnessing strong growth with many 15%
players keen to capitalise on its growing popularity, including Jappi from Team Foods
Colombia SA, which has developed an almond plant-based milk with cocoa. Private
labels are well-placed to strengthen their appeal among increasingly price-sensitive 10%
consumers. Latti continues to capitalise on this, expanding its cheese portfolio and
introducing premium types of cheese, such as Siete Cueros.

Channel developments 5%

E-commerce is seeing slower growth as consumers return to offline retail stores.

Brands continue to bet on developing proprietary online platforms. Despite the
convenience of the online channel, consumers see retail visits as an outing in the post- 0%
2009 2023 2028
pandemic era. Foodservice continues its road to recovery from the pandemic-induced
decline in 2020, due to lockdowns and restrictions. However, high inflation and price
increases are affecting consumers’ discretionary spending outside of the home, which
is slowing down foodservice volume sales.
Sales of Dairy Products and Alternatives by Category
Retail Value RSP - COP billion - Current - 2023 Growth Performance
What next for dairy products and alternatives?
Baby Food
Dairy products and alternatives is expected to record a positive performance over the 622,4
forecast period. A key challenge is the decline in the birth rate and milk production
Dairy
over the forecast period. Many of the dairy products that have continued to benefit 12.900,6
from the robust home cooking/baking trend during the COVID-19 pandemic are likely to
Plant-based Dairy
remain relevant in the early forecast period, including plain condensed milk, butter and 443,3
cream. In difficult economic times, consumers commonly indulge more and spend
-5% 20% 45%
more time in the kitchen. Indulgent options, with premium positioning and exciting
flavours, will also play a part in the growth of dairy products and alternatives. DAIRY PRODUCTS AND 13.966,2 CURRENT % CAGR % CAGR
ALTERNATIVES YEAR % 2018-2023 2023-2028
High sugar warning labels are becoming mandatory for all types of packaged food in GROWTH
December 2022. All products that fail to comply with government sugar content
guidelines must now clearly display a black seal on the front of the packaging. Leading
companies in dairy products and alternatives have thus been focusing efforts on
reformulating products to ensure that they comply with regulations and do not require
the notorious black seal to be applied. In addition, the industry must confront the new
sugar tax, which players must bring into effect by the end of 2023. Consumers may have

© Euromonitor Interna onal 2024 Page 1 of 2

to adopt a further price increment on some dairy products, on top of natural inflation. Competitive Landscape
The rationale behind both regulations is to drive knowledge of health and nutrition,
with a view to helping consumers make more informed decisions. New product
development and new formulations are expected to be launched to meet new these Company Shares of Dairy Products and Alternatives
new requirements as players seek to avoid the sugar tax. % Share (NBO) - Retail Value RSP - 2023

Alpina Productos Aliment... 21.7%

DISCLAIMER
Cooperativa Lechera Cola... 20.6%
Forecast and scenario closing date: 31 July 2023 Productos Naturales de l... 12.0%
Nestlé de Colombia SA 5.6%
Report closing date: 9 August 2023
Upfield Colombia SAS 2.6%
Analysis and data in this report give full consideration to consumer behaviour and
market performance in 2023 and beyond as of the dates above. For the very latest Parmalat Colombia Ltda 2.5%
insight on this industry and consumer behaviour, at both global and national level, Team Foods Colombia SA 1.7%
readers can access strategic analysis and updates on www.euromonitor.com and via the
Gloria Colombia SA 1.5%
Passport system, where new content is being added on a systematic basis.
Danone, Groupe 1.2%
SOURCES Abbott Laboratories de C... 1.0%
Lloreda SA 0.8%
Sources used during research include the following:
Mead Johnson Nutrition C... 0.6%
Summary 1 Research Sources Grasco SA 0.6%
Official Sources Departamento Administrativo de Impuestos Nacionales (DIAN) Rosmi SAS 0.4%
Depa rta mento Na ciona l de Es ta dís tica (DANE) Colombina SA 0.3%
Obs erva torio Agroca dena s (Agronet)
Fomento Económico Mexica... 0.2%
Superintendencia de Socieda des
Levapan SA 0.2%
Trade ANDI - As ocia ción Na ciona l de Empres a rios de Colombia
Associations Inversiones Fasulac Ltda 0.2%
As ocia ción Na ciona l de Productores de Leche Other Private Label 11.7%
ASOLECHE - As ocia ción Colombia na de Proces a dores de Leche
Others 14.4%
Cá ma ra de la Indus tria de Sa bores & Fra ga ncia s
Confedera ción Colombia na de Cá ma ra s de Comercio (Confecá ma ra s )
Federa ción Colombia na de Coopera tiva s de Productores de Leche
(Fedecooleche)
Federa ción Colombia na de Ga na deros (Fedega n)
Brand Shares of Dairy Products and Alternatives
% Share (LBN) - Retail Value RSP - 2023
Federa ción Na ciona l de Comercia ntes (FENALCO)
Servicio Na ciona l de Aprendiza je (SENA) Colanta 20.5%
Trade Press Ca ra col Ra dio Alpina 14.4%
Ca tering Ma ga zine Alquería 9.9%
El Colombia no
Rama 2.6%
El Es pecta dor
Yogo Yogo 2.2%
El Nuevo Día
Klim 2.1%
El Pa ís
El Tiempo Parmalat 1.9%
El Univers a l Freskaleche 1.8%
Gerente Alpinito 1.8%
Indus tria Alimenticia Bonyurt 1.7%
InfoMerca deo
Algarra 1.4%
La Nota Económica
Silk 1.2%
La República
Nestlé 1.1%
Ma rketing News
Merca do de Dinero Campi 0.8%

Noticia s Colombia na s La Lechera 0.8%

Porta folio Similac 0.8%
Porta l Lechero Finesse 0.7%
Revis ta I Alimentos
El Rodeo 0.7%
Revis ta La Ba rra
Other Private Label 11.7%
Revis ta M2M
Others 21.9%
Revis ta P&M
Revis ta Sa ber Beber 5-Year Trend
Increasing share Decreasing share No change
Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2024 Page 2 of 2