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Euromonitor International
September 2021
OTHER DAIRY IN COLOMBIA Passport i
© Euromonitor International
OTHER DAIRY IN COLOMBIA Passport 1
2021 DEVELOPMENTS
Cream and condensed milk continue to benefit from increase in home cooking
Cream and condensed milk saw retail demand increase dramatically in 2020, with the use of these
product types for cooking and baking surging as Colombians spent most of their time at home due to the
fallout of COVID-19. The same trend should ensure both categories continue to perform positively in
2021, though retail volume growth rates are expected to slow as the pandemic recedes and consumers
start to resume their normal routines. Both categories should also benefit from interest in products
recently launched by brands seeking to capitalise on the increase in home cooking. For example, in 2020
La Alquería – the top player in cream – introduced new Grilled Onion and Fine Herb flavour variants for
cooking. These products provide a convenient solution for less experienced home cooks and those who
want to reduce the amount of time and effort required to prepare different meals.
© Euromonitor International
Impact of COVID-19 on fromage frais and quark compounded by
longer-term factors
Fromage frais and quark in Colombia is almost entirely represented by flavoured varieties that are
targeted at children and mainly consumed while on-the-go. As a result, the category has been dealt a
significant blow by school closures and home seclusion during the pandemic, with retail volume sales set
to decline for the second year in a row in 2021. At the same time, heightened budget-consciousness has
led many families to switch to more affordable alternative snacks for children, such as yoghurt, fresh fruit
etc. Limited competition – there are few players present and Alpina holds a dominant position – and a
lack of successful new launches in recent years have further undermined the category’s capacity to
weather the fallout of COVID-19.
New food labelling system expected to stimulate reduced fat launches in cream
While cream looks set to perform positively throughout the forecast period, retail volume growth is
expected to slow slightly in the short-to-medium term as the COVID-19 pandemic recedes and
Colombians become less inclined to cook at home. Demand is also likely to be constrained by a new
mandatory food labelling system due to come into effect by November 2022, which will make
consumers more conscious of the fat content of these products.
However, the impact of this latter development should be tempered by the launch of more reduced fat
variants. The health and wellness trend may also encourage the launch of plant- based cooking creams,
which were not present in Colombia as of early 2021, though it is likely higher unit prices will limit the
appeal of such products if they are introduced.
Narrow focus and health concerns likely to curb demand in fromage frais
and quark
Fromage frais and quark is expected to register a decline in retail volume sales over the forecast period
as a whole. The fact that the category primarily comprises flavoured products aimed at young children –
such as those offered by the Alpinito and Petito brands – will continue to hamper its potential. In addition,
concerns about the high sugar and fat content of these products are likely to lead more parents to choose
healthier snacks for their kids, such as fresh fruit or yoghurt. Some producers will attempt to address the
latter challenge by reformulating products, but this carries the risk of loss of flavour, which could further
undermine demand. The offer of fromage frais and quark products for older age groups in Colombia is
expected to remain negligible, as adult consumers tend to prefer other types of protein-rich snack foods
such as cheese, Greek yoghurt etc.
Price sensitivity and non-essential status of other dairy products will limit
innovation
The level of innovation in other dairy categories is expected to remain relatively low over the forecast
period. The fact that these products are generally not considered necessities will discourage new
launches, particularly of added-value variants, as will high price sensitivity among Colombians. New
product development activity that does take place is likely to be focused on the health and wellness
trend. In particular, it is expected the implementation of the new food labelling system will prompt
companies to introduce reduced fat and reduced sugar options in the short term.
CATEGORY DATA
Table 1 Sales of Other Dairy by Category: Volume 2016-2021
COP billion
2016 2017 2018 2019 2020 2021
% volume growth
2020/21 2016-21 CAGR 2016/21 Total
COP billion
2021 2022 2023 2024 2025 2026
% volume growth
2021/22 2021-26 CAGR 2021/26 Total