Coffee, husks, skins and substitutes market in Panama

Earlier Report Observations

Coffee production in Panama faced ongoing constraints from labor shortages and low mechanization in 2018. The market volume then expanded sharply in 2019, reaching 9 641 t, largely due to record-breaking auction prices for Panamanian Geisha coffee that exceeded $1 000 per pound. This price surge stimulated Asian demand and encouraged local producers to increase output, with production jumping to 8 371 t. The subsequent year saw a market contraction to 7 100 t, coinciding with the government's decision to raise import tariffs on roasted and soluble coffee and introduce non-automatic import licenses, measures designed to protect domestic processors.

From 2021 onward, the non-automatic licensing regime continued to limit imports of roasted coffee, reserving a portion for new entrants. In 2022, the enactment of Law 326 provided a framework to incentivize coffee production, processing, and development, supporting a gradual recovery in domestic output. The market volume surpassed 10 000 t in 2022 and reached 10 531 t in 2023, aided by the entry of the Colombian chain Juan Valdez, which expanded the retail landscape, and by sustained Asian interest in specialty Geisha lots that drove production growth in regions like Chiriquí.

In 2024, authorities approved rules to issue 12 non-automatic import licenses to new companies, aiming to diversify the supply of roasted coffee. The Best of Panama auction set new world price records, exceeding $10 000 per kg, underscoring the luxury segment's role in generating foreign exchange. For the 2023-2024 season, the Ministry of Agricultural Development estimated a 15-20% rise in coffee production, linked to expanded cultivated area and improved yields per hectare.

Production coffee, husks, skins and substitutes in Panama

In kind, 2017-2020, t

Top producers of coffee, husks, skins and substitutes, 2017-2020

World map of production of coffee, husks, skins and substitutes, 2017-2020

In 2019, Panama produced 8,371 tonnes of coffee, husks, skins, and substitutes, marking the highest output in recent years. However, production dropped sharply to 6,254 tonnes in 2020, representing a 25.3% decrease from the previous year. Looking at the period from 2017 to 2020, overall production declined by 5.1%, which translates to an average annual decrease of 1.7%. The lowest production level was recorded in 2018 at 5,579 tonnes. The most significant year-on-year increase occurred in 2019, with a substantial 50.0% rise.

Annual dynamics of production in Panama in kind, 2017-2020, t

Exports coffee, husks, skins and substitutes from Panama

Exports in kind, t

In 2020, Panama exported 2,552 tonnes of coffee, husks, skins, and substitutes, showing little change from the 2019 level. Over the four-year span from 2017 to 2020, exports fell by 25.3%, corresponding to a compound annual growth rate (CAGR) of -9.2%. The lowest export volume was in 2018 at 1,873 tonnes. That year also saw the steepest decline of 45.1%. In contrast, exports rebounded in 2019 with a 37.0% increase.

Annual dynamics of product's exports from Panama in kind, 2017-2020, t

From 2017 to 2020, the United States was the top destination for Panama's exports of coffee, husks, skins, and substitutes by volume, accounting for 41.6% of total exports. Asia, not elsewhere specified, followed with 11.7%, and Japan with 7.4%. Together, these three markets represented 60.7% of Panama's export flows in this category.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Panama in kind, 2017-2020

Exports in value, K $ US

In 2020, Panama's exports of coffee, husks, skins, and substitutes were valued at $26,019 thousand, down 6.7% from 2019. The highest export value was recorded in 2019 at $27,882 thousand, while the lowest was in 2018 at $19,939 thousand. The most significant drop occurred in 2018, with a 24.7% decrease, whereas 2019 saw a notable increase of 39.8%.

Annual dynamics of product's exports from Panama in value, 2017-2020, K $ US

Between 2017 and 2020, the United States led as the primary destination for Panama's exports of coffee, husks, skins, and substitutes by value, making up 27.0% of total exports. Asia, not elsewhere specified, accounted for 18.4%, and Japan for 9.2%. Collectively, these three markets contributed 54.6% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Panama in value, 2017-2020

Imports coffee, husks, skins and substitutes to Panama

Imports in kind, t

In 2020, Panama imported 3,398 tonnes of coffee, husks, skins, and substitutes, an 11.4% decrease from 2019. Over the period from 2017 to 2020, imports grew by 7.9%, averaging an annual increase of 2.6%. The lowest import volume was in 2018 at 2,988 tonnes, while the peak was in 2019 at 3,835 tonnes. The largest year-on-year increase happened in 2019, with a 28.3% rise.

Annual dynamics of product's imports to Panama in kind, 2017-2020, t

From 2017 to 2020, Panama's imports of coffee, husks, skins, and substitutes by volume were sourced from a diverse set of countries. Vietnam was the largest supplier, contributing 17.4% of imports, followed by Honduras at 14.7% and Colombia at 14.5%. Together, these three countries accounted for 46.7% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Panama in kind, 2017-2020

Imports in value, K $ US

In 2020, Panama imported $11,321 thousand worth of coffee, husks, skins, and substitutes, a solid decline of 13.5% from the previous year, following two years of growth. Over the 2017-2020 period, imports increased by 18.8%, with an average annual growth rate of 5.9%. The highest import value was recorded in 2019 at $13,090 thousand. The most significant increase occurred in 2019, with a 32.4% rise.

Annual dynamics of product's imports to Panama in value, 2017-2020, K $ US

Between 2017 and 2020, Colombia was the leading supplier of coffee, husks, skins, and substitutes to Panama by value, accounting for 18.1% of imports. Free Zones contributed 13.7%, and Honduras 12.6%. Even combined, these top three sources represented only 44.4% of total import value, highlighting Panama's broadly diversified partner base in this category.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Panama in value, 2017-2020