Is it profitable to set up an alcoholic beverage or liquor business in Colombia?

The alcoholic beverages market in Colombia is enormous, representing almost 5% of the country's GDP and employing more than 500,000 people, according to the National Federation of Merchants (Fenalco). During the pandemic, alcohol consumption in Colombian homes increased significantly, which has led to an increase in the demand for liquor and, therefore, the proliferation of businesses of this type.

Post Pandemic, the alcoholic beverage business has proliferated in Colombia, which has led many people to wonder if it is profitable to set up a liquor store or alcoholic beverage business in the country. Fortunately, the answer is yes, as long as you do it smartly and understand the market. (Read the article: "Requirements to set up a Liquor Store in Colombia" )

The disproportionate increase in Liquor Made in Colombia

In times of economic recession, like the ones we are currently experiencing, many families have chosen to celebrate at home with domestically produced alcoholic beverages, instead of going out to bars and restaurants. This has led to an increase in demand for local alcoholic beverages, which have proven to be an affordable and accessible alternative for consumers.

The increase in national liquor consumption has skyrocketed due to the inflation effect in Colombia in 2023. People have replaced imported drinks with local ones due to the economic recession, the high prices of imported inputs and the price of the dollar. This has been a big boost for local liquor manufacturers. Two of the big players in the national liquor market are low-sugar liquor and rum liquor. Low-sugar spirits have become a popular choice among health-conscious consumers because they offer a less sweet taste and fewer calories than traditional spirits. On the other hand, rum liquor has gained ground due to the versatility it offers in cocktails and mixed drinks.

Challenges of the Liquor Sector in Colombia

Additionally, many liquor store owners have created innovative marketing strategies and diversified their services to attract more customers, such as home delivery and online sales. These products have been well received by consumers looking for more affordable and accessible options, but also by those looking to support the local industry. In addition, many liquor businesses have begun to focus on the promotion of domestic liquors, which has helped increase their visibility and encourage their consumption.

Despite these challenges, many entrepreneurs have managed to succeed in the alcoholic beverage business in Colombia. This is largely due to the wide variety of products on offer, ranging from domestic and imported beers to high-quality spirits and wines. Furthermore, the liquor industry has helped improve the country's economy, generating jobs and creating opportunities for many entrepreneurs. But it has also been a mole in the sector due to the large amount of illegal liquor supply (Read the article "Stacks with Liquor Offers on Social Networks" )

Setting up an alcoholic beverage or liquor business in Colombia can be profitable, as long as you take into account competition, prices, location and taxes. However, the wide variety of products offered, along with innovation and diversification of services, can help attract more customers and make a business successful. Additionally, the liquor industry in Colombia has proven to be a key driver of the country's economy.