Sales Growth Of Hot Drinks Thanks To Economic Recovery
Panama's economy is projected to grow by 4% in 2025, rebounding from the previous year. The recovery is driven by investments in infrastructure and growth in non-mining sectors such as finance, logistics, and services. In this context, inflation has been stable at 0.8%. Given this context, hot drinks sales recorded growth in both retail volume and current value terms, although value growth far outpaced volume expansion. This was largely driven by the sharp increase in coffee prices, which significantly impacted the overall category’s performance, given that coffee remains by far the largest category within hot drinks. Coffee continued to dominate the category, with consumers showing strong brand loyalty despite higher prices. However, many households shifted towards smaller pack sizes or more affordable local brands to manage their budgets. Tea registered moderate growth as the category is already mature and consumption is somewhat limited by Panama’s high temperatures, which make hot beverages less appealing. Nonetheless, health and wellness trends continue to support green, herbal, and functional teas. Meanwhile, other hot drinks, mainly chocolate-based flavoured powder drinks, saw flat volume but notable value growth, as rising cocoa costs pushed prices up.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot 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:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot 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 Hot 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 Hot Drinks in Panama?
- To what extent are health considerations impacting consumption of Hot Drinks in Panama?
- What are the traditional preferences in Hot Drinks in Panama? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Panama?
- Which are the leading brands in Hot Drinks in Panama?
- How are products distributed in Hot Drinks in Panama?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Panama
Sales Growth Of Hot Drinks Thanks To Economic Recovery
KEY DATA FINDINGS
Despite rising unit prices, consumers remain interested in premium hot drinks
Health and wellness becomes a significant driver of hot drinks’ sales
Significant growth of foodservice especially via small independent cafés
Steady forecast period growth of hot drinks
Health awareness shapes demand for hot drinks
Industry players diversify by introducing cold brews, iced teas and shakes
Casa Luker SA holds the leading position in hot drinks at the end of the review period
Grupo Nutresa SA emerges as the fastest growing player in hot drinks
Supermarkets remains the strongest channel for the distribution of hot drinks
Retail e-commerce experiences the strongest growth from a low base
COUNTRY REPORTS DISCLAIMER
Key Data Findings
2025 Developments
Fresh coffee leads growth as prices slow overall volume expansion
Industry Performance
Growth in the country’s coffee culture via foodservice and a widening range of both national and imported brands in retail
Coffee shops appeal to young urban dwellers who visit these stores to work and to socialise
What’s Next?
Coffee sales continue growing amid rising disposable incomes and an expanding coffee culture
Innovation drives coffee growth in Panama over the forecast period
Cold brews and new consumption occasions
Competitive Landscape
Casa Luker consolidates its lead via Café Durán, while Grupo Nutresa expands rapidly with Colcafé
Grupo Nutresa SA through its Colcafé brand records the fastest growth
Channels
Supermarkets remains the largest channel for coffee backed by ongoing channel expansion
Strong growth of retail e-commerce driven by increasing internet and smartphone penetration
Category Data
Key Data Findings
2025 Developments
Tea experiences moderate volume growth amid falling prices
Industry Performance
Tea bags black and fruit/herbal tea are the most popular categories of tea
Tea is increasingly embraced for its functional benefits and as a substitute for coffee
What’s Next?
Moderate growth of tea as the category matures in Panama
Innovation and premium products are key to recovering value
Health and wellness drives tea growth over the forecast period
Competitive Landscape
Casa Luker SA leads the tea category
Lipton Teas & Infusions achieves strong growth
Channels
Supermarkets holds the largest share of tea sales
Health and beauty specialists achieves strong growth as this nascent channel develops
Category Data
Key Data Findings
2025 Developments
Chocolate-based flavoured powder drinks drive growth of other hot drinks
Industry Performance
Parents buy chocolate-based flavoured powder drinks as they contain a high vitamin and mineral content
Flavoured powder drinks are mainly consumed by children though reduced sugar variants are available for health conscious consumers of all ages
What’s Next?
Moderate forecast period growth of other hot drinks, limited by consumption patterns and category maturity
Innovation and storytelling drive growth of other hot drinks over the forecast period
Addressing health and wellness concerns
Competitive Landscape
Nestlé SA leads other hot drinks with well established brands
Grupo Nutresa SA achieves strong growth
Channels
Small local grocers retains a strong lead in other hot drinks
Fastest growth achieved by retail e-commerce as the channel develops from a low base
Category Data
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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