Wine - Panama

The Wine market in Panama has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Panamanian consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their social and cultural activities. Wine is no longer seen as a luxury item reserved for special occasions, but rather as a beverage that can be enjoyed on a regular basis. This shift in consumer behavior has been influenced by the globalization of wine culture and the growing availability of a wide variety of wines from different regions around the world.

Trends in the market: One of the key trends in the Panamanian wine market is the growing demand for premium and imported wines. Consumers are becoming more knowledgeable about different wine regions and grape varieties, and are willing to pay a premium for higher quality wines. This trend is driven by a desire for unique and exclusive experiences, as well as a growing appreciation for the craftsmanship and artistry that goes into producing fine wines. Another trend in the market is the increasing popularity of organic and natural wines. Panamanian consumers are becoming more health-conscious and environmentally aware, and are seeking out wines that are made with organic grapes and minimal intervention in the winemaking process. This trend is also influenced by the global movement towards sustainable and natural products.

Local special circumstances: Panama's unique geographic location and climate make it an ideal market for wine consumption. The country's tropical climate and proximity to the equator create conditions that are favorable for vine cultivation, resulting in high-quality grapes and wines. Additionally, Panama's growing tourism industry has contributed to the demand for wine, as tourists from around the world seek out local and international wine experiences.

Underlying macroeconomic factors: The strong economic growth in Panama has also played a role in the development of the wine market. As disposable incomes rise and the middle class expands, more people have the financial means to afford wine and explore different options. Furthermore, the increasing number of international events and festivals in Panama, such as wine tastings and food pairings, has helped to raise awareness and stimulate interest in the wine market. In conclusion, the Wine market in Panama is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. Panamanian consumers are increasingly interested in premium and imported wines, as well as organic and natural wines. The country's unique geographic location and climate, along with its strong economy and growing tourism industry, have also contributed to the development of the market.

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.