2024-10-02 08:47:32
In the midst of an economy marked by high inflation and rising interest rates, Colombian households have adjusted their purchasing habits, prioritizing essential products to face financial challenges, according to a recent report by Kantar.
DIARIO DEL HUILA, ECONOMY
In a challenging economic context, marked by high inflation, rising interest rates and weakened consumption, Colombian households have had to modify their purchasing habits to face financial challenges. A recent report from Kantar, a Worldpanel division, reveals how families in the country have prioritized the acquisition of essential products to improve their economy and maintain the stability of their homes.
Colombia’s Gross Domestic Product (GDP) grew just 0.7% during the first quarter of 2024, with a growth expectation of 1% by the end of the year, reflecting the economic slowdown. However, since April 2023, Colombian households have begun to regain some confidence in their financial situation, thanks to a moderate decrease in inflation. This has allowed greater stability in consumption, although economic challenges remain.
Read also: Increase in the unemployment rate in Colombia
Increase in consumption of essential products
Kantar’s report notes that both modern and traditional sales channels have seen an increase in spend in key categories. In modern channels, dairy products, fresh products, beverages and personal care items have been the most demanded by consumers.
The consumption of products such as kumis has experienced an increase of 31%, while liquid milk and its modifiers showed increases of 21% and 18%, respectively. In the fresh food category, artisan bread, beef and pork, and eggs are products that have also seen significant growth in household spending.
In the beverage area, bottled juices had an increase of 27%, while instant coffee rose 26%, positioning themselves as essential products in the preferences of Colombian consumers. On the other hand, in the personal care category, fragrances and makeup lead the list of most in-demand products, with increases of 29% and 24%, respectively.
You may be interested in: Ports of Colombia moved 90.4 million tons of merchandise
Traditional channels maintain their relevance
Despite the rise of modern sales channels, traditional channels continue to be important for Colombian households, especially in the purchase of personal care, household and dairy products. Liquid detergent stands out with a 37% increase in spending, followed by insecticides with 17% and stain removers with 12%. Regarding personal hygiene, wet towels (+25%) and liquid soap (+21%) have also shown significant increases in demand.
Behavior according to socioeconomic level
The Kantar report also offers a detailed view of the behavior of households according to their socioeconomic level. Households at high and medium levels, although only 33% feel comfortable with their financial situation, have increased their spending by 20%, especially on products in the basic basket. This trend has been driven by the reduction in the cost of credit, which has generated slight financial relief for these sectors.
In conclusion, Colombian households are adjusting their consumption habits to adapt to a complicated economic outlook. Prioritizing essential products and taking advantage of both modern and traditional channels has become a key strategy to overcome current challenges. Although inflation has decreased moderately, households continue to be cautious, managing their resources prudently while waiting for economic conditions to improve in the near future.