Market Research in Colombia
Colombia has managed to become an upper middle-income economy due to policies favoring economic growth.
Known for its coffee and music culture, Colombia is a thriving Latin American economy which is very open to foreign investors.
Colombia’s Strategic Industries
For a long time, Colombia’s economy has relied on the oil industry for growth. Having suffered when global oil prices dipped, diversification has become a priority. Here are some of the other industries helping grow the country’s economy.
Manufacturing in Colombia
Colombia has been manufacturing appliances for the domestic market since the 20th century. In the late 90s however, the country started exporting to neighboring countries. Ranking among the top appliance manufacturers in South America and selling to both local and regional customers, the industry is a key growth driver.
The textile and garments sector contributes to Colombia’s manufacturing, helped by a growing local fashion industry. Contraband products have been making their way into the market, taking up almost half of local clothing sales.
Services Industry in Colombia
The services industry has been growing over the years due to tourism and improved technology uptake. The labor force is educated and readily available. Thousands of companies in this industry generate billions of dollars in revenue every year.
Colombia’s history, geography and culture attract tourists from around the world. The biggest tourist sites in Colombia are in the cities and coastal areas as well as jungles and mountain ranges.
Construction in Colombia
The goal of reducing travel time by 30% and transport cost by 20% fueled government spending in the construction of infrastructure. Improvements targeting the rail systems, port facilities and an expansion of the airport have created a construction boom in the country.
Investment Opportunities in Colombia
Colombia has signed many trade agreements to provide a market for its produce. With a commitment to free trade and ongoing negotiations for more agreements, the country offers a favorable environment for investments.
Investing in Colombia’s Health Sector
As the cost of medical procedures in the US shoots up, Colombia is providing cheaper yet quality treatment. This leads to the growth of the medical tourism sector with most patients arriving from the US, Europe, Canada, Venezuela and the Caribbean.
The most sought after services are in the areas of cardiology, oncology, dentistry and plastic surgery. This industry has been growing at impressive rates with businesses making hundreds of millions in revenue.
Cosmetics and Beauty Investment in Colombia
The cosmetics and beauty industry in Colombia is ever growing with the country being among the top four markets in Latin America. Products and services include makeup and cosmetic procedures such as teeth whitening and plastic surgery.
There has been a growing interest in natural beauty products and ingredients, creating room for innovation. Winning in this industry will come down to R&D, branding and marketing. With a culture which encourages pursuing perfection, investors are guaranteed a market and attractive returns.
Challenges Facing Colombia’s Economy
One of the biggest challenges facing Colombia’s economy is illicit drug business. This drug problem has created a black market at the global level and is destroying the youthful workforce.
The country’s economy is also susceptible to shifts in global commodity prices. Poverty and inequality are high and the economy is still dependent on oil exports for revenue.
Top Economic Hubs in Colombia
With a skilled workforce, technological infrastructure and a membership in UNESCO’s Creative Cities of Music, Bogota is a strategic cluster for investors in the services industry.
The city of Medellin, also called the city of flowers, has been attracting retirees over the years mainly from the US. The city has an active outdoor lifestyle, near-perfect weather and a lower cost of living. The city is perfect for investments in financial services and tourism.