The impact of COVID-19 has come to an end and all alcoholic drink is performing well in 2022. However, despite a rebounding on-trade, the off-trade has surpassed 2019 volume sales in many categories while the on-trade has not, as at-home consumption remained popular.
In 2022, sales of alcoholic drinks have performed well, with the off-trade recovering and surpassing pre-pandemic levels. However, on-trade sales have not yet fully recovered due to many consumers continuing to spend more time at home, as they did during the pandemic, with this persisting as a long-term habit.
In Panama, the consumption of alcohol is considered socially acceptable among consumers of all socioeconomic levels. Indeed, Panama has the highest per capita beer consumption in the region.
In 2022, inflation in Panama has reached 3%, which, although slightly higher than that registered in 2021, was among the lowest in the world. Likewise, formal jobs have shown a significant recovery, which benefited the consumption of alcoholic beverages.
In 2022, alcoholic drinks are mainly distributed through supermarkets and hypermarkets, while small local grocers continue to recover from the COVID-19 pandemic. E-commerce is also seeing rapid growth as the number of internet users continues to increase, making consumers more confident in making purchases via this channel.
The legal drinking in Panama age is 18, as is the legal age for purchasing alcohol and no changes were seen to this legislation during the review period. Nevertheless, underage drinking remains fairly common, and it tends to be more common among boys than girls and more common in rural than in urban areas.
The IBTM (Impuesto de Transferencia de Bienes Muebles or Tax Transfer of Movable Goods) is the country's retail tax and is imposed on alcoholic drinks at 10% of retail price, which is higher than the standard IBTM of 7%. The higher mark-ups in the on-trade mean that low tax rates have little impact on prices in bars and restaurants.
Over the forecast period, the positive economic outlook in Panama is expected to drive demand for alcoholic drinks, especially among mid-low-income consumers. The anticipated increase in formal employment and disposable incomes should lead to greater spending on alcoholic drinks, while the normalisation of tourism is expected to benefit the on-trade sector.
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
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:
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
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.See All of Our Definitions
This report originates from Passport, our Alcoholic Drinks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!