Look Towards A New Future

Mar 21, 2012

Soft Drinks Market in Colombia

In 2011, the improvement in weather conditions contributed to the positive total volume sales growth seen by soft drinks. However, slower total volume sales growth was seen in 2011 compared to the review period. The most dynamic categories in 2011 were RTD tea and sports and energy drinks, with demand driven by the health trend. Carbonates, concentrates, and juice all performed well in 2011, while bottled water saw the least dynamic retail volume sales growth, as result of competition from healthier alternatives like RTD tea.

Diversification in packaging encourages demand
Competition in soft drinks was intense over the review period, leading companies to introduce new products and packaging formats for their brands. This trend was driven by factors like increasing demand for convenient products and affordable pricing, as well as by the technological advances that enabled players to introduce more environmentally-friendly packaging.

The Soft Drinks in Colombia market research report includes:
  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth 
  • Robust and transparent market research methodology, conducted in-country

Soft Drinks Market

Published: March 2012
Price: Single User License: US$ 1900


Intense competition in healthier categories
Of the five leading player in soft drinks in Colombia in retail value sales terms in 2011, two were local companies, namely Postobon and Quala, while the remaining three, FEMSA, Bavaria and Aje Group were of foreign extraction. In carbonates, Postobon and FEMSA were the leading players in 2011, with the former seeing the more dynamic performance over the review period. In fruit/vegetable juice, FEMSA, supported by its strong performance in fruit-flavoured drinks, which remained the largest fruit/vegetable juice category in Colombia, emerged as the leading player over the review period, while Postobon ranked second throughout the review period. In RTD tea, Postobon, with its Mr Tea brand, continued to account for a dominant share of retail value sales in 2011, despite seeing a significant loss of sales share over the review period.

Off-trade channel is the largest and most dynamic
Off-trade volume sales continued to account for a dominant share of total soft drink volume sales in Colombia in 2011, driven by sales through small grocery retailers, particularly independent small grocers. The on-going popularity of independent small grocers was attributable to the availability of convenient pack sizes and returnable presentations, suited to the different budgets of consumers. Meanwhile, the on-trade channel saw positive volume sales growth throughout the review period, albeit at a slower pace than the off-trade channel.

Healthier categories to fare better over the forecast period
The maturity of carbonates, which accounted for a 69% share of total volume sales in 2011, will result in soft drinks seeing slower total volume sales growth over the forecast period than was seen over the review period. While all categories, with the exception of bottled water, are expected to see slower total volume sales growth over the forecast period, as a result of increasing maturity, the future of soft drinks in Colombia continues to be promising. Fruit/vegetable juice, RTD tea, flavoured bottled water and low calorie carbonates are likely to continue to positively impacted, by the rapid adoption of health trends amongst younger generations, as well as by obesity laws, which are expected to be introduced over the forecast period. It is predicted that, over the forecast period, healthier soft drinks options will gain ground at the expense of carbonates.