Beer - Panama

The Beer market in Panama has been experiencing significant growth in recent years.

Customer preferences: Panamanian consumers have shown a growing preference for beer as their alcoholic beverage of choice. This can be attributed to several factors. Firstly, beer is widely available and affordable, making it accessible to a large portion of the population. Additionally, the hot and humid climate in Panama makes beer a refreshing and popular choice among consumers. Furthermore, the social nature of beer consumption, often enjoyed with friends and family, contributes to its popularity in the country.

Trends in the market: One of the key trends in the beer market in Panama is the increasing demand for craft beer. Craft beer has gained popularity worldwide in recent years, and Panama is no exception. Consumers are seeking unique and flavorful options, and craft breweries have emerged to cater to this demand. These breweries offer a wide range of styles and flavors, appealing to beer enthusiasts who are looking for something different from the mainstream brands. The growth of the craft beer segment indicates a shift towards more sophisticated and discerning consumer tastes in Panama. Another trend in the market is the rise of low-alcohol and non-alcoholic beers. Health-conscious consumers are increasingly looking for alternatives to traditional alcoholic beverages. Low-alcohol and non-alcoholic beers provide a lighter option for those who want to enjoy the taste of beer without the effects of alcohol. This trend is driven by a growing awareness of health and wellness, as well as changing societal attitudes towards alcohol consumption.

Local special circumstances: Panama's strategic location as a transportation hub has played a significant role in the development of its beer market. The country serves as a gateway for international trade, allowing for easy importation of a wide variety of beer brands from around the world. This has contributed to a diverse and competitive market, with both local and international brands vying for consumer attention. Additionally, the presence of a large expatriate community in Panama has led to the introduction and popularity of beers from different countries, further diversifying the market.

Underlying macroeconomic factors: The strong economic growth in Panama has had a positive impact on the beer market. With a growing middle class and increasing disposable incomes, consumers have more purchasing power to spend on discretionary items such as beer. Additionally, the country's booming tourism industry has also contributed to the growth of the beer market, as tourists often indulge in alcoholic beverages during their visits. In conclusion, the beer market in Panama is experiencing growth due to customer preferences for accessible and refreshing beverages, the emergence of craft beer and the demand for low-alcohol and non-alcoholic options. The country's strategic location, diverse market, strong economy, and thriving tourism industry have also contributed to the development of the beer market. As consumer tastes continue to evolve, it is likely that the beer market in Panama will continue to expand and diversify in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.