Spirits - Panama

The Spirits market in Panama has been experiencing steady growth in recent years, driven by customer preferences for premium and imported spirits, as well as the country's favorable economic conditions and growing tourism industry.

Customer preferences: Panamanian consumers have shown a growing preference for premium spirits, including whiskey, vodka, and tequila. This can be attributed to a rise in disposable income and changing consumer tastes, as individuals seek higher quality and more diverse options. Additionally, there is a strong demand for imported spirits, particularly from well-known international brands. Consumers in Panama are increasingly willing to pay a premium for these products, as they are seen as a symbol of status and sophistication.

Trends in the market: One of the key trends in the Spirits market in Panama is the increasing popularity of craft spirits. This trend mirrors the global craft spirits movement, where consumers are seeking unique and artisanal products. Craft distilleries in Panama are gaining recognition for their high-quality spirits, often made with locally sourced ingredients and traditional production methods. This trend is driven by a desire for authenticity and a growing interest in supporting local businesses. Another trend in the market is the rise of flavored spirits. Flavored spirits, such as flavored vodka and flavored rum, have gained popularity among younger consumers who are looking for innovative and exciting drinking experiences. These products offer a wide range of flavors, from fruity and sweet to spicy and savory, catering to different taste preferences. The introduction of new flavors and limited-edition releases has also created a sense of exclusivity and urgency among consumers.

Local special circumstances: Panama's strategic location as a transportation hub and its strong tourism industry have contributed to the growth of the Spirits market. The country's canal and ports make it a key transit point for international trade, allowing for easy importation of spirits from around the world. Additionally, Panama's growing tourism industry attracts visitors from all over the world, creating a demand for a wide variety of spirits to cater to different tastes and preferences.

Underlying macroeconomic factors: The favorable macroeconomic conditions in Panama have played a significant role in the growth of the Spirits market. The country has experienced steady economic growth, low inflation rates, and rising disposable incomes, which have increased consumers' purchasing power. This has allowed consumers to spend more on premium and imported spirits, driving the growth of the market. Furthermore, Panama's stable political environment and investor-friendly policies have attracted foreign investment in the Spirits industry. This has led to the introduction of new brands and products in the market, providing consumers with a wider range of options to choose from. In conclusion, the Spirits market in Panama is experiencing growth due to consumer preferences for premium and imported spirits, the rise of craft and flavored spirits, the country's strategic location and strong tourism industry, as well as favorable macroeconomic conditions. These factors are driving the market's development and creating opportunities for both local and international spirits producers.

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.