News | 21 October 2026
The next wave of investment in the consumer goods industry
Aurora Acuña, Global Banker, Consumer & Retail, BBVA Colombia
Competitiveness, sustainability and financing industrial transformation.
Is there an inherent conflict between growth in the consumer goods industry and sustainability? Traditionally, increased production has entailed greater consumption of energy, water and raw materials, alongside higher emissions and waste generation. However, this relationship is evolving. Technological innovation, resource efficiency and new production models are making it possible to reduce environmental impacts without compromising growth.
As a result, sustainability is evolving from a regulatory and reputational requirement into a key driver of competitiveness. Against this backdrop, consumer goods companies will need to embark on a new wave of investment to enhance productivity, strengthen resilience and secure long-term growth.
The central question, therefore, is: Which areas should the next wave of investment prioritise to ensure that profitability, competitiveness and corporate responsibility can coexist?
There is no single answer. The consumer goods industry faces mounting pressure on profit margins, cost volatility, technological transformation and increasingly stringent environmental requirements. To remain competitive, companies could focus their investments on the following strategic priorities:
One of the greatest challenges facing management teams will be determining which investment priorities to pursue. Financial resources are limited, and implementing multiple projects simultaneously can put pressure on liquidity, increase indebtedness and heighten operational risks.
CAPEX prioritisation should therefore be based on a comprehensive assessment encompassing several dimensions.
First, financial returns: Priority should be given to projects that deliver measurable cost savings, generate cash flow and offer attractive payback periods.
Second, strategic impact: Investments should enhance productivity, strengthen commercial differentiation and improve companies' ability to adapt to emerging technologies and evolving markets.
Finally, risk management: Investment initiatives should support operational continuity, regulatory compliance and resilience to energy, water and supply chain constraints.
The optimal strategy involves balancing investments that deliver near-term returns with longer-term structural transformation projects, while accounting for implementation complexity and preserving the company's financial flexibility.
The returns generated by this new wave of investment extend well beyond reductions in operating costs, becoming a driver of long-term value creation.
Technological modernisation, resource efficiency and process optimisation can improve operating margins, release working capital and strengthen cash flow generation. At the same time, these investments reduce exposure to energy cost volatility, supply chain disruptions, and regulatory and environmental risks.
Furthermore, they foster innovation, product differentiation and access to new markets, creating additional growth opportunities.
In this context, the profitability of CAPEX should be assessed not only in terms of its direct financial returns but also through its contribution to a company's long-term resilience and competitiveness.
Colombia's sugar agro-industry provides a compelling example of how a traditional industry can diversify its business model through investment in sustainability and energy efficiency.
Sugar mills have evolved from conventional sugar producers into integrated agro-industrial operations capable of generating renewable electricity, producing bioethanol and extracting value from process by-products, thereby turning the circular economy into a source of competitive advantage.
The most significant development has been the cogeneration of electricity using sugarcane bagasse, a by-product used as fuel to produce steam and generate electricity.
According to Asocaña's 2025-2026 Annual Report, the sector generated 1,929 GWh of electricity in 2025, of which 880 GWh was supplied to Colombia's National Interconnected System. The sector also plans to increase its installed cogeneration capacity from 372 MW to 418 MW by 2028.
This demonstrates how industrial investment can reduce energy dependence while generating additional revenue through the sale of surplus electricity.
Diversification also encompasses bioethanol production, which reached a record 434 million litres in 2025, according to Asocaña, alongside emerging opportunities to recover value from industrial by-products.
A study published in 2025 in the journal Ingeniería y Competitividad assessed the potential for electricity generation using biogas derived from vinasse, a by-product of ethanol production.
Its findings identified opportunities to expand renewable electricity generation and reduce environmental impacts, although commercial implementation requires a project-specific assessment of technical and economic feasibility.
From a financial perspective, this case illustrates how sustainability-related CAPEX can become a source of revenue diversification and greater industrial resilience.
Investments in high-efficiency boilers, cogeneration systems, anaerobic digesters and energy infrastructure create opportunities for long-term financing, leasing and green financing, subject to project eligibility criteria.
The challenge for sugar mills will be to continue scaling up these capabilities while balancing investment returns against electricity market conditions and the evolving regulatory framework.
The next wave of investment in the consumer goods industry represents an opportunity for BBVA to further strengthen its leadership in sustainable finance and consolidate its position as a strategic partner in its clients' business transformation.
In the years ahead, competitive advantage will not necessarily depend on investing more, but rather on investing more effectively and securing the right financing to support that transformation.
Is there an inherent conflict between growth in the consumer goods industry and sustainability? Traditionally, increased production has entailed greater consumption of energy, water and raw materials, alongside higher emissions and waste generation. However, this relationship is evolving. Technological innovation, resource efficiency and new production models are making it possible to reduce environmental impacts without compromising growth.
As a result, sustainability is evolving from a regulatory and reputational requirement into a key driver of competitiveness. Against this backdrop, consumer goods companies will need to embark on a new wave of investment to enhance productivity, strengthen resilience and secure long-term growth.
Profitability, competitiveness and responsibility: the key investment drivers
The central question, therefore, is: Which areas should the next wave of investment prioritise to ensure that profitability, competitiveness and corporate responsibility can coexist?
There is no single answer. The consumer goods industry faces mounting pressure on profit margins, cost volatility, technological transformation and increasingly stringent environmental requirements. To remain competitive, companies could focus their investments on the following strategic priorities:
- Industrial modernisation and automation: Upgrading equipment and adopting robotics, artificial intelligence and process digitalisation to enhance productivity, minimise waste and improve operational flexibility.
- Energy efficiency and renewable energy: Deploying energy-efficient technologies, electrifying industrial processes and investing in on-site renewable energy generation to reduce costs and exposure to energy price volatility.
- Water management: Implementing treatment, recirculation and reuse systems to reduce water consumption and mitigate water availability risks, particularly in the food and beverage industry.
- Circularity and packaging: Redesigning packaging, incorporating recycled materials and recovering value from waste to optimise resource use and respond to evolving commercial and regulatory requirements.
- Logistics and distribution: Automating distribution centres, optimising transport routes and modernising vehicle fleets to reduce costs and improve service levels.
- Supply chain resilience: Strengthening traceability, diversifying suppliers and managing climate-related and environmental risks to ensure business continuity. These investments are intended not only to reduce environmental impacts but also to bring about structural improvements in companies' efficiency and competitiveness.
How, then, should CAPEX be prioritised?
One of the greatest challenges facing management teams will be determining which investment priorities to pursue. Financial resources are limited, and implementing multiple projects simultaneously can put pressure on liquidity, increase indebtedness and heighten operational risks.
CAPEX prioritisation should therefore be based on a comprehensive assessment encompassing several dimensions.
First, financial returns: Priority should be given to projects that deliver measurable cost savings, generate cash flow and offer attractive payback periods.
Second, strategic impact: Investments should enhance productivity, strengthen commercial differentiation and improve companies' ability to adapt to emerging technologies and evolving markets.
Finally, risk management: Investment initiatives should support operational continuity, regulatory compliance and resilience to energy, water and supply chain constraints.
The optimal strategy involves balancing investments that deliver near-term returns with longer-term structural transformation projects, while accounting for implementation complexity and preserving the company's financial flexibility.
What returns can these investments generate?
The returns generated by this new wave of investment extend well beyond reductions in operating costs, becoming a driver of long-term value creation.
Technological modernisation, resource efficiency and process optimisation can improve operating margins, release working capital and strengthen cash flow generation. At the same time, these investments reduce exposure to energy cost volatility, supply chain disruptions, and regulatory and environmental risks.
Furthermore, they foster innovation, product differentiation and access to new markets, creating additional growth opportunities.
In this context, the profitability of CAPEX should be assessed not only in terms of its direct financial returns but also through its contribution to a company's long-term resilience and competitiveness.
The Colombian case: How sugar mills are becoming alternative energy producers
Colombia's sugar agro-industry provides a compelling example of how a traditional industry can diversify its business model through investment in sustainability and energy efficiency.
Sugar mills have evolved from conventional sugar producers into integrated agro-industrial operations capable of generating renewable electricity, producing bioethanol and extracting value from process by-products, thereby turning the circular economy into a source of competitive advantage.
The most significant development has been the cogeneration of electricity using sugarcane bagasse, a by-product used as fuel to produce steam and generate electricity.
According to Asocaña's 2025-2026 Annual Report, the sector generated 1,929 GWh of electricity in 2025, of which 880 GWh was supplied to Colombia's National Interconnected System. The sector also plans to increase its installed cogeneration capacity from 372 MW to 418 MW by 2028.
This demonstrates how industrial investment can reduce energy dependence while generating additional revenue through the sale of surplus electricity.
Diversification also encompasses bioethanol production, which reached a record 434 million litres in 2025, according to Asocaña, alongside emerging opportunities to recover value from industrial by-products.
A study published in 2025 in the journal Ingeniería y Competitividad assessed the potential for electricity generation using biogas derived from vinasse, a by-product of ethanol production.
Its findings identified opportunities to expand renewable electricity generation and reduce environmental impacts, although commercial implementation requires a project-specific assessment of technical and economic feasibility.
From a financial perspective, this case illustrates how sustainability-related CAPEX can become a source of revenue diversification and greater industrial resilience.
Investments in high-efficiency boilers, cogeneration systems, anaerobic digesters and energy infrastructure create opportunities for long-term financing, leasing and green financing, subject to project eligibility criteria.
The challenge for sugar mills will be to continue scaling up these capabilities while balancing investment returns against electricity market conditions and the evolving regulatory framework.
The next wave of investment in the consumer goods industry represents an opportunity for BBVA to further strengthen its leadership in sustainable finance and consolidate its position as a strategic partner in its clients' business transformation.
In the years ahead, competitive advantage will not necessarily depend on investing more, but rather on investing more effectively and securing the right financing to support that transformation.