During 2024, both volume and value sales of tobacco decreased, largely influenced by the steep decline in sales of cigarettes, that account for the majority of industry sales. The country has tight tobacco regulations and high taxes, which heavily impact prices, making them unaffordable to many Panamanians. These policies have exacerbated the illegal market which comprises 91% of the consumed cigarettes in the country.

The number of households is set to increase moderately, while the average household size will shrink in Panama over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 72% by 2029.

Panama's GDP grew 1.7% between January and March 2024. However, this represents a slowdown compared to 9.3% growth in the same period in the previous year. Income from tolls from the Panama Canal fell 17.6% in the first quarter of 2024 while the closure of quarries and cessation of mining contracts hampered commercial activities carried out in the Colón Free Zone. In October 2023, with the aim of putting pressure on the government permit that would make it easier for a Canadian company to operat

The population of Panama is predicted to Increase by 12.7%, due to changes in net migration and natural change, standing at a total of 5.0 million citizens by 2040. The birth rate in Panama is anticipated to fall between 2024 and 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040. Generational cohorts in Panama will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Sales of tissue and hygiene achieved positive growth in value terms in 2024 over the previous year. With an easing in inflation levels coupled with a more intense competitive environment, prices dropped. This meant less pressure on household budgets and enabled an increase in spending on tissue and hygiene products. The tissue and hygiene market was also benefited by positive developments in the tourism industry, in which there was an increase in the flow of internal and external tourists, a sit

Panama is currently facing a challenging economic situation. After a strong GDP expansion in 2023, the economy saw a significant slowdown in 2024. Due to the complex economic context, sales of home care products experienced a modest increase in retail volume terms during 2024, registering the weakest growth compared to other countries in the region. Laundry care and surface care constitute the two largest categories, both of which saw steady consumer demand over the review period.

Although achieving high approval ratings, the new president could face opposition to enact his policy agenda, whilst relations with the US over the Panama Canal are tense. Inflation is under control, but economic growth has been hit by the closure of a major copper mine. Relatively high incomes and population expansion will support the consumer market, but ageing is an increasing concern. Internet use is growing and mobile adoption is strong, which will be boosted by greater 5G availability.

Soft drinks consumption achieved solid growth in 2024. This was based on the performance of both carbonates and bottled water, which combined account for the lion’s share of market volume sales. The ongoing recovery of the foodservice industry and return of tourists to the country boosted sales, while sports drinks benefited from heatwaves. Sales of RTD coffee and RTD tea also experienced strong growth, though both remained niche, with the latter benefiting from the health and wellness trend.

Hot drinks sales achieved strong growth in 2024. The largest category coffee performed best although growth was stifled by category maturity and high levels of penetration. Its sales were also hampered by significant global price hikes. Economic uncertainty, rising inflation and the war in Ukraine had an impact on consumer spending power. Nevertheless, sales are being supported for drinks that can be prepared quickly, especially among the middle class, while distribution is also widening.

Retail volume sales of staple foods rose in 2024 although performances varied across categories, depending on the level of price increases and whether the category was subject to extended government price controls to maintain affordability and consumption. Price sensitive consumers began switching from expensive meat to cheaper protein sources such as shelf tuna, while baked goods achieved only moderate retail volume growth, despite the popularity and low prices of unpacked bread in Panama.

In 2024 cooking ingredients and meals performed well, despite several challenges, including drought in the Panama Canal, which caused an increase in transit times, reduced container productivity and led to product shortages and price hikes. As a result, many consumers began downtrading and reduced unnecessary expenditure. However, edible oils, tomato pastes and purées and herbs and spices, which are regarded as essentials, helped to soften the impact of the complex economic environment.

Consumer health sales recorded stronger growth in 2024 than that seen in 2023 when consumers prioritised spending on essential goods over preventive health. As a result, vitamins and dietary supplements and weight management and wellbeing returned to positive growth. Sports nutrition, analgesics, cough, cold, and allergy (hay fever) remedies and dermatologicals continued to grow well, although drought conditions are affecting trade flows through the Panama Canal and product availability.

High inflation and rising living costs continue to put pressure on household incomes in 2024 which is negatively impacting sales of dairy products and alternatives. Manufacturers are also facing rising production and distribution costs, raw material shortages, such as animal feed, which is crucial in dairy, as well as increasing utility bills. As a result, value sales of dairy products and alternatives continue to rise in 2024 despite falling volume sales.

Retail volume sales of snacks are set to see healthy growth in 2024. Despite difficult economic conditions and rising prices, demand for snacks will remain healthy with falling unemployment acting in support. Confectionery is set to benefit from the full resumption of society, while sweet biscuits will be boosted from their free provision in schools. Sales of ice cream, however, will continue to contract due to rising production costs and the withdrawal of Häagen-Dazs vanilla ice cream.

The commodities country overview provides comprehensive data on production, consumption and price trends on key commodities markets. The commodities overview in Australia covers production and consumption trends in agricultural commodities, energy products, electricity, metal products as well as an overview of key economic and business environment trends.

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. Low tax rates, the return of socialising and tourists boosted demand. Off-trade sales dominate while beer, seco and rum are popular in both channels.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

The report examines the economic landscape of Panama and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2023, driven by private consumption, government spending, investments. However, global economic slowdown, rising geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

Ageing, urbanisation and migration continue to be major factors shaping the global population. The number of seniors around the world kept expanding in 2021 and is expected to grow further in the years to 2040. The number of small children is systematically falling globally due to decreasing fertility rates, later marriages and other factors influencing the change in lifestyles. Containment of the pandemic, gradual lift of the restrictions and political unrest encourage greater mobility and migr

While Latin America’s digital landscape is less well developed than other regions globally, most measures continue to improve, with Coronavirus (COVID-19) also having served to drive the digital landscape development in 2020. With locked-down consumers working and learning at home, as well as shopping and entertaining themselves a lot more in an online environment, they were increasingly turning to digital solutions during the pandemic.