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Growth of retail cooking oil in the Colombian market

08/02/2022

By Jose Campo, Commercial Vice President of the DAABON Group

In Colombia, the retail cooking oil sector has shown growth in both demand and supply over recent years. Between 2017 and 2019, the production of C.I Tequendama presented an exponential increase, achieving a growth of 202%. However, COVID-19 halted this year-on-year growth as the pandemic unfolded and led to numerous restrictive measures, such as lockdowns and forced closures in the hospitality sector. This was reflected in a 9% decrease in sales in 2020 compared to 2019. Nevertheless, the lifting of various restrictions imposed by the national government and the purchase and development of new technologies have been key to the good development of the company throughout 2021. At the beginning of the 2021 a modern high speed bottling plant was up and running smoothly, generating greater trust and reliability for our customers. This trust has been reflected in our having attracted more retail buyers, going from two retailers in 2017 to business relationships with more than seven large retailers in 2021, reaching a volume of more than 35,000MT/year. The growth between 2017 and 2021 was 1485% and it is predicted to continue growing over the coming years.

The national market is expected to continue growing with new private label brands and more potential retail customers who will help us become one of the leaders in the production of retail cooking oil. We hope to continue to be differentiated by our pillars in sustainability, organic agriculture and innovation, that should enable us to remain unique in the Colombian market.

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