Market Trends of Colombia Fruits And Vegetables Industry
Strong Distribution and Retail Networks are Driving the Colombian Fresh Produce Sector
In recent years, Colombia's fresh produce import rate has been increasing faster than global imports, with Chile, the United States, and Peru being the major exporters. For instance, according to the ITC Trade map, the total fresh vegetable imports for 2023 were around 306.9 thousand metric tons, with a value of USD 280.2 million. This is a significant increase compared to the previous year's imports, which were valued at USD 280 million. This trend can be attributed to changing consumer food preferences, where an assortment of produce that excels at freshness, quality, flavor, safety, and convenience is in high demand. Consumers are willing to pay a premium for it. The increasing demand for fresh produce has created an opportunity for retail chains to import and cater to the needs of consumers, resulting in a surge in the number of retail chains in the country.
Retail food players, manufacturers, distributors, and other retailers are expected to leverage this opportunity, with their share expected to increase shortly. Hyper and supermarkets are the primary retail chains focusing on consolidation, with Almacenes Exito, Carulla-Vivero, Carrefour, Supertiendas Olimpica, Alkosto, Makro, Cafam, Colsubsidio and La 14, and Surtifruver being the major players in Colombia. These retail chains are undergoing rapid expansions, strengthening the distribution links of fresh produce in the domestic market.
Further, retail chains, manufacturers, distributors, and other retailers need to adjust to the evolving consumer preferences, such as providing fresh, high-quality, flavorful, safe, and convenient produce to meet the increasing demand for fresh produce. The retailers must focus on expanding their distribution channels and consolidating their operations to cater effectively to the growing demand. Overall, the fresh produce market in Colombia is set to witness significant growth shortly, and companies need to adapt and evolve to take advantage of this opportunity.
Bananas to Dominate the Fresh Produce Sector
Bananas are not only the most popular fruit in Colombia but also one of the country's most important tropical foods. According to the Food Agriculture Organization (FAO), Colombia's production of bananas was 2.41 million metric tons in 2021, which increased by 2.52 million metric tons in 2022. Colombia is the 5th largest exporter of bananas globally, with approximately 93% of the bananas produced being exported to foreign markets annually, with more than 50% destined for Europe and the United States. According to the ITC Trade map, bananas exported from Colombia to the United States were 361,475 metric tons in 2020, which increased by 366,086 metric tons in 2023.
In Colombia, the banana market is characterized by horizontal and vertical integration within the value chain, with a highly competitive export market focused on the country. However, the high demand from global markets has led to banana plantations becoming increasingly dependent on agrochemicals, which has slightly hampered production in the country over the past few years. Despite these challenges, the high demand for exports and increasing production in the country have helped Colombia become one of the major exporters of bananas globally during the forecasted period.
