Bottled Water - Panama

The Bottled Water market in Panama has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Panamanian consumers are increasingly opting for bottled water as their preferred choice of beverage. This shift in preference can be attributed to several factors. Firstly, there is a growing concern among consumers about the quality and safety of tap water, leading them to choose bottled water as a safer alternative. Additionally, the convenience and portability of bottled water make it a popular choice for on-the-go consumption. Furthermore, the health-conscious trend in Panama has also contributed to the rise in demand for bottled water, as consumers perceive it to be a healthier option compared to sugary beverages.

Trends in the market: One of the key trends in the Bottled Water market in Panama is the increasing popularity of premium and flavored water. Consumers are willing to pay a premium for bottled water that offers additional benefits such as enhanced taste, added minerals, or functional ingredients. This trend is driven by the desire for a more indulgent and personalized drinking experience. Another emerging trend is the demand for environmentally-friendly packaging options. As sustainability becomes a growing concern globally, Panamanian consumers are seeking bottled water brands that use eco-friendly materials and promote recycling.

Local special circumstances: Panama's tropical climate and high temperatures create a favorable environment for the Bottled Water market. The need for hydration is heightened, leading to increased consumption of bottled water. Additionally, tourism plays a significant role in driving the market. Panama is a popular tourist destination, attracting visitors from around the world who often prefer to consume bottled water due to concerns about water quality in unfamiliar surroundings.

Underlying macroeconomic factors: The steady economic growth in Panama has contributed to the expansion of the Bottled Water market. As disposable incomes rise, consumers have more purchasing power to spend on premium and healthier beverage options. Furthermore, the increasing urbanization and modernization of Panama have led to changes in lifestyle and consumption patterns. Busy urban dwellers are more likely to opt for convenient and portable beverages like bottled water. In conclusion, the Bottled Water market in Panama is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for bottled water is driven by concerns about tap water quality, convenience, health-consciousness, and the tropical climate. Premium and flavored water, as well as eco-friendly packaging options, are gaining popularity. The steady economic growth and urbanization in Panama further support the expansion 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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.