Consumer Overview in Colombia PDF

CONSUMER OVERVIEW IN COLOMBIA
December 2019
Consumer Overview in Colombia
▪ Life Priorities
▪ Home Life: At Home Activities
▪ Home Life: Desired Home Characteristics
▪ Working Life: Expectations
▪ Leisure Habits
▪ Leisure: Holiday Wish List
▪ Health: Exercise Habits
▪ Health: Online
▪ Shopping Habits
▪ Shopping: In-Store Motivations
▪ Technology In Everyday Life
▪ Technology: Personal Use
Life priorities
▪ Thanks to economic growth and public policy initiatives aimed at

poverty reduction, the growing middle class has supported demand for
a range of discretionary items and services. Nevertheless, with
Colombia now home to 1.4 million Venezuelan migrants and 27% of
the population still living below the national poverty line, average
disposable incomes are just USD5,000 and the income gap remains the
largest in Latin America. Reflecting this, consumers are very cautious,
with just 10% of survey respondents expecting to increase their overall
spending in the next 12 months, and 54% intending to save money.
▪ With a relatively young and family-orientated population, the survey
found that “time with a partner” and “time with children” were top
priorities for 56% and 54% of consumers, respectively. Although much
of the nation identifies as Catholic, spiritual beliefs play a much
stronger part in the lives of Baby Boomers (74%) than Gen Z (44%).
▪ Faced with problems such as soil erosion and deforestation,
Colombians are highly concerned about environmental issues: as many
as 74% of respondents were worried about climate change, and 73%
said they try to have a positive impact on the environment through
their everyday actions. On the whole though, consumers are rather
optimistic about the future: 74% of respondents (versus just 55%
61% of consumers like to be
globally) thought they would be happier going forward, while 75%
distinct from others
thought they would be better off financially.
© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 3

Life priorities
Source: Euromonitor International Lifestyles Survey 2019

Life priorities by age

Home life
▪ Colombia is continuing to rapidly urbanise, as people move to cities and

towns in order to escape poverty and the threat of rural militias.
Indeed, 47% of our survey respondents (versus a global average of
38%) considered “urban or inner city location” a key home feature.
However, with crime rates very high and Bogotá characterised by dense
hillside slums, “safe location” was a top concern for as many as 77% of
respondents. Another impact of urbanisation is that the majority (59%)
of consumers require “proximity to public transport”.
▪ Couples tend to marry young, and among the lower classes it is still
common for extended family members to live together. As many as 63%
of households consisted of couples with children or multigenerational
families in 2019. Nevertheless, the share of single-person and single-
parent households has reached 16% and 14% respectively, due to
falling marriage rates and population ageing. This has created a
growing need for smaller properties – especially apartments – and has
driven the rental market: 45% of households were rented in 2019, up
from 40% in 2014.
▪ Pet ownership is high in Latin America, and Colombia is no exception:
72% of respondents had a pet at home, of whom 77% considered them 39% of consumers consider
to be “beloved members of the family”. While premium pet food is still a
on-site fitness facilities to be
niche, Euromonitor data projects that spending on all pet food will grow
an important home feature
by 53% in real terms between 2019 and 2024.

Home life: at home activities

Home life: at home activities by age

Home life: desired home characteristics

Home life: desired home characteristics by age

Working life
▪ With the population boosted by migration, the youth unemployment

rate remains high, at 20%. Furthermore, Colombia has a vast informal
economy, which is estimated to account for between 20% and 40% of
GDP. Indeed, as many as 24% of our respondents (compared with 16%
globally) had more than one job. The minimum wage hinders
employment growth in the formal sector, but informal workers have
very little protection when it comes to wages, health coverage and
retirement plans. For this reason, job security was considered a
priority for 47% of Colombian respondents – much higher than the
global average of 38%.
▪ With just over half the female population in work (51%), and working
hours among the longest in the world at 47 a week, job flexibility is
also important to Colombians. Our survey found that 48% of
consumers (and 53% of Gen X) wanted a job that allows for a strong
work-life balance; a third (33%) wanted to be able to work from home,
compared with just 23% globally.
▪ The current retirement age is just 62 for men and 57 for women, but
the many people who work in the informal sector are forced to work
into old age due to a lack of retirement income. Indeed, a substantial
46% of Baby Boomers in our survey expected to work beyond the 50% of Gen Z expect to work
typical retirement age, compared with just 16% who anticipated abroad in future
taking early retirement.

Working life: expectations

Working life: expectations by age

Leisure
▪ Given that Colombia still lags behind many countries in terms of internet
connectivity, much of people’s leisure time is spent enjoying traditional
offline pursuits. Indeed, as many as 83% of respondents in our survey
said they value “real world experiences”.
▪ The home is often the hub of most social activity, with 66% of
consumers saying they socialise with the people they live with at least
once a week. However, almost half of consumers (49%) reported going
to the cinema at least monthly; while the national passion for football
means that as many as 30% of people to go to a sporting event at least
once a month. Eating out – especially in shopping malls – is also popular,
with 48% of Millennials going to restaurants at least once a week.
▪ With Colombia’s digital landscape evolving rapidly, online
entertainment is burgeoning. On a weekly basis, as many as 75% of our
survey respondents visited a social networking site; 65% watched
TV/video; 47% played games; and 43% streamed music via their phone.
▪ The elimination of tourist visas for Colombians visiting some 30
European countries has made outbound travel easier, but it remains the
preserve of more affluent consumers. Indeed, only 43% of our survey
70% of consumers seek
respondents reported going abroad at least once a year. Domestic travel
“curated experiences that are
is more common, with 16% of respondents (22% of Millennials) taking
at least four domestic trips a year. Over a third (35%) of Colombian
tailored to my tastes”
consumers reported a preference for all-inclusive destinations.

Leisure habits

Leisure habits by age

Leisure: holiday wish list

Leisure: holiday wish list by age

Health
▪ Obesity levels in Colombia are among the lowest in Latin America, at

23%. However, they crept up gradually in recent years, as the desire for
convenience led to a rise in unhealthy eating habits. For example, while
spending on overall foodservice went up by just 3% in real terms over
the 2014-2019 period, spending on limited-service restaurants jumped
by 19%. In addition, almost a third (32%) of our survey respondents
ordered food for consumption at home at least once a week. Millennials
were the most likely generation to be on a weight loss diet (34%).
▪ Nevertheless, health awareness is growing, thanks to improved living
standards and social media interest. As many as 55% of consumers said
they monitor what they eat in order to manage their weight, and 44%
(50% of Gen X) reported closely reading the nutrition labels of food and
drinks. This translated into an 11% rise in spending on health and
wellness in real terms over 2014-2019. Vegetarianism is also on the rise,
with as many as 13% of consumers claiming not to eat red meat.
▪ Colombians like to keep active, with as many as 65% of respondents
saying they exercise at least weekly. Indeed, every Sunday morning the
streets of Bogotá are closed for cyclists, runners and skaters (an event
known as Ciclovía). Our survey found that on a weekly basis, 48% of 29% of Millennials use an app
Baby Boomers walked for exercise; 38% of Millennials cycled and 34% to track their health or fitness
went running; and 27% of Gen Z and Millennials played a team sport at least weekly
(typically football).

Health: exercise habits

Health: exercise habits by age

Health: online

Health: online by age

Shopping
▪ Due to the high level of income inequality, Colombians are price-

sensitive. As many as 64% of our survey respondents expressed a
preference for bargains, while 40% said they try to lead a minimalist
lifestyle and only buy new items when necessary. Nonetheless,
consumers are unwilling to sacrifice quality for price: 44% said they
would rather buy fewer but higher-quality items, while 40% (compared
with just 27% globally) reported seeking strong or well-known brands.
▪ Household items are still purchased mainly from mom-and-pop stores
(tiendas de barrio) or street vendors. These remain popular among low-
income consumers due to their competitive prices, informal credit
facilities and the ability to buy products singly. Supermarkets are often
used as anchors in shopping malls and are frequented mainly by higher-
income consumers with cars. Grocery discounters is an emerging format
that is gaining traction: Euromonitor data projects that spending in
discounters will soar by 124% in real terms between 2019-2023.
▪ Due in part to Colombians’ enjoyment of browsing in stores, as well as
gaps in internet connectivity, online shopping is not yet well-developed.
As many as 62% of respondents (versus a global average of just 43%)
said they like to visit shopping malls, while 52% enjoy looking in stores 39% of consumers seek
even if they do not buy anything. Conversely, just 20% of our survey “personalised and tailored
respondents reported buying something online (and 22% via a shopping experiences”
smartphone) at least once a week.

Shopping habits

Shopping habits by age

Shopping: in-store motivations

Shopping: in-store motivations by age (1)

Shopping: in-store motivations by age (2)

Technology
▪ Colombia continues to lag behind many other countries in terms of

internet connectivity. However, the government’s Vive Digital
programme has helped reduce the technological gap between rural and
urban areas, and boosted the share of households with broadband
internet from 28% in 2014 to 48% in 2019. The share of the population
accessing the internet via their phones jumped to 46%, helping to drive
up smartphone volume purchases by 36% from 2014 to 2019. Given
that data plans are still unaffordable for many, most consumers access
the internet via open and free Wi-Fi connections.
▪ As many as 90% of our online survey respondents owned a smartphone
and 40% a tablet, while 73% said they used technology to improve their
day-to-day lives. Smartphones are used mainly for communication, with
an enormous 82% of respondents (compared with 69% globally) using a
messaging app such as WhatsApp at least weekly. Colombians are also
very keen users of social media: as many as 76% of consumers reported
using a social networking site at least weekly (75% via a smartphone).
Furthermore, 55% said they were highly influenced by friends' social
media posts or mentions, and 43% by online influencers.
▪ While the internet of things (IoT) is still out of reach for low-income
42% of Millennials expect to
consumers, our survey found that as many as 44% of respondents (and
increase their spending on
57% of those in the top income group) had a smart kitchen appliance,
new technology
and that 43% would pay a premium for a smart appliance in general.

Technology in everyday life

Technology in everyday life by age

Technology: personal use

Technology: personal use by age

FOR FURTHER INSIGHT PLEASE CONTACT
Jennifer Elster
Project Manager
[email protected]
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CONSUMER OVERVIEW IN COLOMBIA

▪ Thanks to economic growth and public policy initiatives aimed at

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 3

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 4

Life priorities by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 5

▪ Colombia is continuing to rapidly urbanise, as people move to cities and

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 6

Home life: at home activities

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 7

Home life: at home activities by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 8

Home life: desired home characteristics

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 9

Home life: desired home characteristics by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 10

▪ With the population boosted by migration, the youth unemployment

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 11

Working life: expectations

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 12

Working life: expectations by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 13

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 14

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 15

Leisure habits by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 16

Leisure: holiday wish list

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 17

Leisure: holiday wish list by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 18

▪ Obesity levels in Colombia are among the lowest in Latin America, at

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 19

Health: exercise habits

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 20

Health: exercise habits by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 21

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 22

Health: online by age

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 23

▪ Due to the high level of income inequality, Colombians are price-

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 24

Source: Euromonitor International Lifestyles Survey 2019

© Euromonitor International LIFESTYLES: CONSUMER OVERVIEW IN COLOMBIA PASSPORT 25