In 2017, the production value of Colombia’s food manufacturing performed better than in 2016, growing by 1.8% y/y. This positive result was driven by the growth of the oil and fat segment, which rose by 3.6% y/y, accounting for 21% of the food and beverage GVA in 2017. The beverage segment GVA, on the other hand, posted a significant drop of 4.5% y/y, after the 7.6% y/y increase observed in 2016. The intensified domestic demand for beverages in 2016 stemming from the extreme temperatures caused by the El Niño phenomenon stimulated the domestic output. Yet, in 2017 the beverage sales value followed the decreasing trend of the production and fell by 4.7% y/y.

In 2017, no important changes occurred in the market structure. Market shares of the key products groups remained relatively stable. Still, there was a shift in consumers’ spending towards dairy products, confectionery, bread and bread products, fish and fish products.

The market dynamics section of the report examines the diverse factors which govern the demand and supply of products in the food safety testing systems & services market. This analysis will provide an in-depth understanding of the direction in which the market has headed and the impact of various factors on the same. This section covers the market dynamics – namely the drivers, restraints, and the opportunities in the food safety testing market, listing and analyzing several factors that positively and negatively affect the market.

The introduction of a 6% GST in April 2015 had a significant impact on consumer spending in 2015. The effect of the GST manifested itself first in a strong growth in consumption prior to its introduction, while the overall volume index of retail trade grew at a rate exceeding 9% y/y in the preceding quarters, as consumers made big-ticket purchases to avoid the 6% tax. The strong spending growth pre-GST was followed by a post-GST moderation, which also had a noticeable negative effect on the overall retail trade index and the F&B and Tobacco subindex. Similarly, the planned zero rate of the GST effective June 1, 2018 that Malaysia’s newly elected government announced in mid-May 2018, is expected to considerably improve consumer sentiment in the country in the short- to mid-term.