Market Trends of Colombia Cold Chain Logistics Industry
Rising Consumer Demand For Perishable Goods
Consumers are now more aware of health and wellness and the effect that food nutrients, especially protein, have on overall physical and mental growth and development. This has resulted in a change in the consumption pattern of perishable foods, such as dairy products, fruits and vegetables, and high-protein animal-based products (such as meat, eggs, fish, and seafood). Emerging economies in Asia Pacific and Latin America are witnessing a high demand for perishable food products. This can be attributed to rapid urbanization, changing tastes and preferences, and the rising disposable income of consumers in these countries. The market potential for processed and frozen food products is also high in among emerging countries such as Colombia due to their lower adoption rates. The consumption of ready-to-eat meals, such as frozen pizzas, desserts, and snacks, is rising steadily in the LATAM countries. The frozen food market requires an effective cold storage system so that the chemical composition of food items remains intact even after several months. With the increased international trade of perishable food products, the demand for cold storage systems is expected to increase in the coming years.
Increasing Demand for Dairy Products and Frozen food is driving the Market Growth
Colombian dairy imports are mostly cream, whey protein, milk powder, and other product ingredients, such as casein. Domestic consumption of dairy products has increased due to promotional efforts that appeal to changes in consumption patterns because of urbanization and income shifts. Consumers prefer fresh cheese, which is available in modern retail and mostly in wet markets and mom & pop stores due to its artisanal production. Even though hard cheese is seen as expensive and with a strong flavor, retailers like PriceSmart, D1 and Jumbo introduce different cheese varieties, which are key for educating consumers about this product. Colombian milk production reached 7,821 million liters (2,066 million gallons) in 2021. The dairy manufacturing sector in Colombia includes domestic and multinational companies, such as Nestle, Parmalat, and Danone, and domestic brands, including Colanta, Alpina, and Alqueria.
The Other Dairy Product, Bread consumption per capita is still low at 22 kilograms (48 pounds) compared to other Latin American countries, such as Chile (98 kilograms/216 pounds), Argentina (82 kilograms/180 pounds), and Uruguay (55 kilograms/121 pounds). Chilled meat and poultry products are in high demand in urban areas. According to Euromonitor, most of the Colombian chilled processed food market is in processed meats or poultry, and a minor share for chilled ready-to-eat meals; however, preference for chilled processed food has always been higher than for frozen products. Mexican, Italian, and Chinese preparations are preferred by consumers when buying ready-to-eat-meals. Grupo Nutresa leads in this category with a 60 percent market share. For canned goods, Colombians are primarily consumers of canned tuna, but the market for other canned/preserved products, such as meat, beans, tomatoes, and soups, is expanding. New competitors have arrived in the market, offering various products according.
