Economic Condition Supporting Panama Beer Market: Ken Research
Posted on 02 May 2017 by KenResearch Food and Beverage,
With the change in time, beer consumers are also increasing. It is the most consumed alcohol drink and is popular after water and tea.Yeast, water, hops and malted barley are the key ingredients used in beer. Even though the market for beer is negatively affected due to the rise in the tax for the same but still the favourable economic condition helps the beer market and its consumption in Panama. The beer consumption volume declined by 2% in 2015, but the total market value is increased by 6% in Panama.
With the rapid economic growth of Panama, purchasing power of the population has been increased. The production for beer market has grown by 5.1% which is more than the average production in rest of the Latin America. The consumption for the beer has increased from 77 to 80 litres in 2011.
Research report titled “Panama Beer Market Insights Report 2016; In-depth Analysis of Key Companies, Brands, Volume, Value and Segmentation Trends and Opportunities in the Beer Market”, the Panamanian market for beer is majorly occupied by two major brewers: SABMiller group and Baru panama. Even though the market for beer in panama is occupied these two major domestic producer, but the small brewers in the market have also begun to increases which is changing the consumption trend in panama.
Cerveceria National (Panama), which belongs to SABMILLER group, dominates the market with overall 55% of share in the market. Panamanian people are getting more inclined to light beers as they want a refreshing product with less alcohol in it. Lager is dominating the market with 98% share.
In 2010, the beer industry produced around 235 million of beer which was 2.3% higher than 2009.As the market for beer is dominated by two major brewers, therefore due to the shortage in local production; the import for beer has risen in the past few years. U.S. is importing the majority of beer which stands by 73%.
Due to the rise in tax the beer consuming population tends to fall, still itenjoys the largest share in the market with 54%. The glass packaging for the beer bottles is still expected to dominate the market for some more time. Huge investment has been made by major players, mainly focusing on expansion, improving the quality, innovating new line of beers.
Ken Research says, the beer market of panama is continuously growing with the high economic growth and rising purchasing power of people. Although the major market is occupied by the two leading brands but still new small brewers are also entering the market and affecting the consuming demands of the consumer.
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Ankur Gupta, Head Marketing & Communications