Colombia | Consumption Outlook. October 2024

Summary

This study provides an overview of consumption patterns in Colombia, analyzing how purchasing power and demographic shifts influence household decisions. It also explores changes in the consumer basket and the impact of digital trends on Colombians' preferences.

Key points

• Key points:
• Colombia stands out for the significant share of private consumption in its GDP, with a strong focus on services and non-durable goods. Within services, rent and healthcare occupy key positions, reflecting a spending structure aimed at covering basic needs and essential services.
• Renting continues to gain prominence in Colombia: by 2023, 40.3% of households lived in rental housing, a notable increase since 2019. This shift highlights a trend toward renting over ownership and reveals a significant housing deficit, particularly in urban areas.
• Households’ urban incomes make up 90% of the national total, with marked disparities between urban and rural areas. Bogotá leads in per capita income and accounts for nearly 30% of households national income, while rural areas contribute only 10%, facing greater consumption constraints—a situation that underscores the economic and social divide between regions.
• Household structures have evolved due to low birth rates and an aging population, leading to an increase in single-person and single-parent households. This shift influences consumption toward wellness services, technology, and entertainment while reducing spending on children’s products.
• This study offers an overview of Colombia’s consumption patterns, analyzing how purchasing power and demographic shifts shape household decisions. It also explores transformations in the consumption basket. From purchasing power to household composition, the analysis highlights the factors that will shape consumption in the years to come.

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