Volume sales of alcoholic drinks rose in 2023 fuelled by a favourable economic climate including another year of strong real GDP growth and low inflation. However, despite improvement in the on-trade, the off-trade surpassed 2019 volume sales in many categories, while the on-trade did not, as at-home consumption remained popular.
Sales of alcoholic drinks experienced positive growth in 2023. This growth was driven in large part by a favourable economic climate and admirably low inflation.
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 rates in the region.
In 2023, Panama’s economy witnessed another impressive year. Inflation remained quite low, with estimates near the close of the year at around 2% annualised, which has been the lowest at the regional level.
In 2023, alcoholic drinks were mainly distributed through supermarkets and hypermarkets, along with small local grocers. Retail 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.
Building on the strong economic performance of the last couple of years of the review period and the ongoing rebound in tourism, Panama is expected to have a favourable macroeconomic performance over the forecast period, with low inflation and steady growth. However, this positive outlook could be tempered by a number of factors, including the reduction in daily transits through the Panama Canal due to the prolonged drought and the uncertainty surrounding the Cobre Panamá mine, including potential arbitration costs should the Canadian operator pursue the recent Court decision and closure.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See All of Our DefinitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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