Are you looking to export processed foods to Latin America? Discover these 4 export opportunities in Colombia!

Today, trade opportunities with tariff preferences have expanded due to strategic agreements with the Andean Community of Nations and the Pacific Alliance.

The food sector in Colombia is one of the most dynamic and continuously growing industries. According to Oportunidades comerciales para alimentos procesados en Colombia (Trade opportunities for processed foods in Colombia) study available on the Exportemos.pe portal, this sector is projected to achieve annual sales exceeding USD 26.5 billion in 2024. Additionally, demand for processed foods is expected to grow by 4 % each year over the next five years.

Therefore, if you plan to export processed foods to Colombia, we present the following four opportunities in the Colombian market based on the study above:

1. High demand for healthy and organic products

Fueled by growing health awareness, the demand for healthy and organic products in Colombia has seen significant growth in recent years. According to the research firm Colombia Expert Report, the healthy snacks market is expected to reach a value of USD 890 million by 2023. Furthermore, this market is projected to grow annually by 5.1 % between 2024 and 2032, potentially reaching USD 1.932 billion by 2032. In the coming years, Colombian consumers are expected to increasingly choose healthier diets.

2. Raw materials like flours and seasonings

The demand for flours and seasonings in Colombia has experienced steady growth in recent years, driven by changes in consumption habits, a diversification of product offerings, and a growing interest in international cuisine. (source: Commercial Opportunities for Processed Foods in Colombia, page 22)

According to the Chamber of the Federation of Wheat Millers of Colombia (FEDEMOL), this country is expected to consume 1.36 million tons of fortified wheat flour in 2023. The herbs, spices, and seasonings sectors are projected to grow at a compound annual growth rate (CAGR) of 4.72 % between 2023 and 2027, reaching a production value of $57.62 billion by 2027 (source: GlobalData).

Source: Shutterstock / PROMPERÚ

3. Product development for discount stores (hard discount)

According to a report by Kantar, Colombian consumers stand out in the Latin American region for being among the most savings-focused buyers. They are always on the lookout for promotions, particularly for products like edible oils, juices, nectars, snacks, chocolates, sauces, and seasonings.

Thus, according to the Exportemos.pe report, Colombian consumers continue to prefer their neighborhood stores (bodegas) as their primary shopping choice, followed closely by local consumer stores.

This trend is also evident with healthy products, as neighborhood bodegas serve as the primary channel for their sales, accounting for 41 %. Supermarket chains follow closely, representing 31 % of sales, according to data from the “Healthy World” study conducted by Nielsen Holdings.

Source: Mario Silva / PROMPERÚ

4. Tariff preferences

Peruvian processed products have significant opportunities to expand their reach in the Colombian market, thanks to a favorable factor. Under the Andean Community Free Trade Zone (CAN), 100 % of Andean products can circulate commercially without tariffs in member countries: Bolivia, Colombia, Ecuador, and Peru. (Source: Andean Community)

TO BE CONSIDERED:

Companies that already import fresh produce from Peru have a positive perception, creating an opportunity to diversify and promote more products of our exportable offer.

However, there is a need in the Colombian market to develop promotional programs that raise awareness and provide more information about the range of processed products from Peru.

Some companies have attempted to trade with Peru, particularly for inputs like piquillo peppers, artichokes, and canned asparagus. However, some supply chain limitations still need to be overcome.

All the companies interviewed in the report agree on the necessity of evaluating the competitiveness of Peruvian products compared to the competition, particularly regarding pricing.

Source: Marco Vargas / PROMPERÚ

WHAT TO DO?

First and foremost, Peruvian companies should identify and participate in commercial venues such as showrooms or business roundtables, where they can showcase their processed products and provide detailed information about their offerings.

Another option would be to develop a brochure, website, or virtual platform where Colombian importing companies can explore the types of products available in Peru and identify which ones meet their specific demand needs.

Trade relations between Peru and Colombia have improved in recent decades, making it easier for Peruvian products to enter the Colombian market. Additionally, the close proximity between the two countries helps lower transportation costs and streamline logistics, providing a significant advantage for Peruvian exporters.

Therefore, the accessibility of the Colombian market and favorable import conditions enable Peruvian companies to explore and expand their presence in this market more easily.