Dairy products and alternatives in 2025: The big picture
Although milk consumption is falling short of international standards of 160 litres per year, as recommended by the World Health Organization, the National Association of Milk Processors reported that a slight increase in production and consumption is expected after two years of decline, driven by prices and milk substitutes that have changed Panamanian consumption habits. Sales of dairy products and alternatives are poised for growth in retail value terms in 2025, continuing the trend of the previous year. This is also being helped by a low and stable inflation rate 0.7% for 2024. The stabilisation of inflation indicates a more balanced economic environment, fostering increased consumer confidence and purchasing power. In 2024, GDP growth slowed to 2.9%, due to challenges such as the suspension of copper mine operations and recurring droughts that affected transit through the Panama Canal. Despite these obstacles, Panama remains a regional benchmark in terms of economic growth, and its economy is expected to regain momentum in 2025, with projected GDP growth of 3.5%, driven by solid domestic demand and the reactivation of public and private investment. This is leading to rising demand for a diverse range of dairy products, including traditional options, such as drinking milk and yoghurt, as well as plant-based alternatives.
Key trends in 2025
One significant trend shaping the sales of dairy products and alternatives is rising health consciousness among consumers, who are increasingly aware of the nutritional differences between products. This awareness is being fuelled by the wide availability of information on websites and social media platforms, leading to a notable shift towards healthier lifestyles. As a result, milk players have launched and positioned products with a high protein content, which includes boosting Kefir and Greek formats, fortifying flavoured milk with added protein as well as fortifying consumer health offerings such as Bonlac Fit with 15g of protein. Also important is the inclusion of probiotics in many yoghurt offerings, which has enhanced their appeal, as consumers increasingly seek out foods that support digestive health and overall wellbeing.
Competitive Landscape
The competitive landscape has remained stable over the review period, with local companies continuing to have a significant value share. Industrias Lacteas SA holds the top position in Panamanian dairy products and alternatives due to its strategy that combines tradition with innovation and social responsibility; its commitment to society includes its participation in initiatives such as Lecheton2030, where 3,500 litres of milk were donated to feed children and senior citizens in various shelters.
Channel developments
Growth in demand for dairy products and alternatives is being fuelled by robust distribution through hypermarkets and supermarkets, which remain the primary channels for these products. Modern trade channels are actively investing in increasing the amount of shelf space dedicated to both dairy and plant-based alternatives and enhancing product visibility and availability. These stores are accessible being located in both urban and semi-urban locations, making them the standard go-to option for many consumers, especially due to frequent promotions and their offer of a wide range of products ranging from international brands to local offerings.
What next for dairy products and alternatives?
The outlook is positive for dairy products and alternatives over the forecast period. As the Panamanian economy continues to grow and the middle class expands, this industry will register further growth. Additional positive factors will include rising health consciousness, environmental concerns, and evolving dietary preferences. Food producers are urging the government to maintain the school snack programme, arguing that it is crucial for nutrition and academic performance. This comes after the Ministry of Education (Meduca) announced the gradual elimination of the glass of milk, cookie, and nutritional cream programme starting in early 2025. This programme will not only affect the quality of school food but also the industry.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives 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 a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives 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 Dairy Products and Alternatives 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 Dairy Products and Alternatives in Panama?
- Which are the leading brands in Dairy Products and Alternatives in Panama?
- How are products distributed in Dairy Products and Alternatives in Panama?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Panama?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Panama
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Key Data Findings
2025 Developments
Overall baby food growth continues to slow due to demographic shifts
Milk formula players launch value-added products to counter declining demand
Supermarkets and hypermarkets dominate sales due to wider variety of baby food
Prospects and Opportunities
Declining birth rate continues to dampen category sales over the forecast period
Opportunity to combine child-friendly presentations with better-for-you offerings
Increasing unit prices of milk formula boosts competition from milk
Category Data
Key Data Findings
2025 Developments
Recovery of dairy amidst economic normalisation
Innovation and disruptive marketing increase consumer engagement
Supermarkets remains the go-to channel for dairy, while retail e-commerce gathers the most momentum
Prospects and Opportunities
Ongoing growth of dairy over the forecast period, despite ongoing challenges
Health concerns drive the development of new products with heightened nutritional profiles
Innovative marketing is essential for differentiation
Category Data
Key Data Findings
2025 Developments
Plant-based dairy records contraction in value sales, despite consumer interest
Felipe Motta remains the top player despite falling sales
Supermarkets remains by far the leading channel for plant-based dairy
Prospects and Opportunities
Prices of plant-based dairy remain a barrier for many consumers over the forecast period
Foodservice consumption raises the profile of other plant-based milk
Limited forecast period potential of plant-based cheese and plant-based yoghurt
Category Data
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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