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.
Alcoholic drinks in 2024: The big picture
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.
2024 key trends
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.
Competitive landscape
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.
Retail developments
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 vs off-trade split
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.
What next for alcoholic drinks?
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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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Panama with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Panama, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Panama report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Panama?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Panama?
- How are products distributed in Panama?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Panama
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Taxation and Duty Levies
Operating Environment
Contraband/parallel trade
Duty free
Cross-border/private imports
Key New Product Launches
Outlook
DISCLAIMER
Key Data Findings
2024 Developments
Beer continues to be a traditionally popular choice, while consumers remain price sensitive
Anheuser-Busch InBev NV is the leading company in beer sales
Supermarkets remains the main channel in the distribution of beer while small local grocers records the strongest growth
Prospects and Opportunities
Beer remains a popular alcoholic drink over the forecast period
Beer variety continues to widen with increased availability of international brands
Non alcoholic beer remains niche but becomes increasingly popular due to growing health and wellness awareness
Category Data
Key Data Findings
2024 Developments
A growing wine culture in Panama encourages consumers to try new products
New products are common, as wine lovers attempt to try new flavors
Food/drink/tobacco specialists and supermarkets carry a wide variety of wine options
Prospects and Opportunities
Consumers seek out new options and explore food pairings
Tourism continues supporting sales of wine over the forecast period
Consumers increasingly adopt a greater foucs on health and more mindful consumption over the forecast period
Category Data
Key Data Findings
2024 Developments
Panamanians continue to consume spirits when socialising, with other spirits being the most popular
Varela Hermanos SA is the leading company in spirits
Supermarkets is the leading distribution channel within spirits
Prospects and Opportunities
Forecast period growth for both premium and value brands
Flavour trends continue to expand in rum
Consumers moderate their consumption over the forecast period in line with growing health consciousness
Category Data
Key Data Findings
2024 Developments
Cider/perry is not a popular drink in the country, with demand remaining mainly seasonal
Valle, Ballina & Fernández SA is the leading company in cider/perry distribution
Food/drink/tobacco specialists remains the most popular channel for cider/perry sales, followed by supermarkets
Prospects and Opportunities
Slow forecast period growth for cider/perry
Artisanal beer lovers enjoy artisanal cider
Cider has potential among consumers seeking alcoholic drinks with a lower alcohol content
Category Data
Key Data Findings
2024 Developments
Demand for RTDs is growing
Diageo leads in RTDs thanks to the popularity of its Smirnoff brands
Supermarkets leads in the distribution of RTDs
Prospects and Opportunities
Younger generations and tourists continue driving sales growth of RTDs over the forecast period
Flavor innovation continues to attract young adults seeking new experiences
Wellness trends expand the category over the forecast period
Category Data
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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-
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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