In 2024, Panama experienced an increase in taxes on alcoholic drinks. This fact, combined with a new government elected in May 2024, affected the country’s economic performance. In July 2024, the alcoholic drinks industry warned that prices would rise due to Law 438, which established a 30% tax on beer, alcohol, whiskies and other liquors to finance a bonus of USD140 a year to pensioners.
2024 represented the year Panama finally emerged from the COVID-19 pandemic. General elections held in May 2024 were won by the conservative candidate José Raúl Mulino, who won with 34.2% of the vote. There was a general positive atmosphere, with the country seeing dynamic construction, and tourism reaching pre-pandemic levels. As such, volume sales of alcoholic drinks recorded growth.
Beer continues to be the largest category in alcoholic drinks, as Panama is a tropical country and beer is drunk as a refreshing alternative. Beer is considered to be one of the most cost effective alternatives when consumers are looking for drinks, and is often price promoted, offering extra savings. Tourism numbers also contribute to beer sales, as tourists often consume beer while on holiday.
The leading player in alcoholic drinks in Panama is Anheuser-Busch InBev NV (AB InBev), which produces, distributes, and sells a wide variety of beer in Panama. While AB InBev owns numerous brands globally, in Panama, a former business of SABMiller was transferred to Ambev SA. Ambev continues to sell beer, including the Budweiser and Bud Light brands in Panama. It also has a licencing agreement to distribute Stella Artois and Beck's in Latin America, including Panama. Additionally, it has agreements to distribute Corona brands, including Corona Extra and Corona Light, in Panama.
Supermarkets is the most significant off-trade channel for alcoholic drinks. Supermarkets generally offer the widest range of brands and products as well as the convenience of buying alcoholic drinks during weekly or monthly grocery shopping trips. Mid- and high-income consumers shop in supermarkets and small local grocers (chino) for at-home consumption, especially when picking up drinks on the way to house parties. Supermarkets often offer price promotions of well-known brands and have the latest innovations available.
On-trade sales of alcoholic drinks remain strong in Panama, accounting for around one-quarter of total volume sales at industry level at the end of the review period. This can be attributed largely to strong demand among foreign tourists, as well as the huge numbers of urban-dwelling Panamanians who enjoy socialising in bars and restaurants. Many on-trade outlets seek to boost sales via happy hour promotions, and price discounts and in some cases, tasting events. Popular bars and nightclubs also often employ tastings to entice customers, with these generally being attractive to young women offering free samples of different types of drinks. Happy hour discounts are commonly offered at bars from 17.00hrs to 19.00hrs in a transparent ploy to attract office workers, while happy hours in nightclubs usually run from 22.00hrs to 24.00hrs in an effort to position themselves as the first port of call for people on a night out. In addition, many nightclubs in Panama City also offer women free drinks on set nights of the week in an effort to attract more customers.
Panama is expected to continue to have one of the highest per capita incomes in the Central American region. This alongside a sustained strengthening of the middle class is set to favour stable growth of alcoholic drinks sales over the forecast period. Beer will remain a popular category in the country as consumers often enjoy cold beer together when out socially. Aside from the large industrial players, the still niche but growing category of craft/artisanal beer is another promising category as such brands continue to expand and consumers turn to these alternatives to try new tastes and beer experiences. Additionally, non/low alcohol beer is also expected to remain a niche but increasingly popular category.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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