The Spices, Condiment and Seasoning Market in Panama

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The Spices, Condiment and Seasoning Market in Panama COMMERCIAL REPORT: THE SPICES, CONDIMENT AND SEASONING MARKET IN PANAMA EMBASSY OF THE REPUBLIC OF INDONESIA IN COLLABORATION WITH MARKET RESEARCH CONSULTANT PANAMA CITY 2020 1 INDEX 1. INTRODUCTION .................................................................................................................. 4 1.1. Objective ........................................................................................................................ 4 1.2. Methodology .................................................................................................................. 4 2. PRODUCT DESCRIPTION ................................................................................................... 4 3. CURRENT MARKET ............................................................................................................ 4 4. FOREIGN TRADE ................................................................................................................ 5 4.1. Imports .......................................................................................................................... 5 4.2. Exports ........................................................................................................................... 6 5. MARKET SIZE ...................................................................................................................... 6 5.1. Wealth Distribution ......................................................................................................... 6 5.2. Quality of Life ................................................................................................................. 6 5.3. The Panamanian Consumer .......................................................................................... 6 6. PRODUCT POTENTIAL ....................................................................................................... 7 6.1. Strategies and Promotional Campaigns ......................................................................... 7 7. COMMERCIALIZATION AND DISTRIBUTION CHANNELS ................................................ 7 7.1. Product Characteristics .................................................................................................. 7 7.2. Suggestions for Entry into the Panamanian Market ........................................................ 8 8. STRUCTURE OF THE PANAMANIAN RETAIL SECTOR ................................................... 8 8.1. Conditions of Purchase – Sale ....................................................................................... 9 9. HOTEL, RESTAURANTS AND DISTRIBUTION CHANNEL (HORECA) IN PANAMA ....... 9 9.1. Analysis of the Relevant Participants of HORECA ......................................................... 9 9.2 Commercial Strategy of Relevant Participants of HORECA ............................................10 9.3 Recommendations ..........................................................................................................11 10. REQUIREMENTS AND IMPORT BARRIERS ......................................................................11 10.1. Sanitary Registry ..........................................................................................................11 10.2. Import Declaration ........................................................................................................12 10.3. Labeling .......................................................................................................................13 10.4. Tariff Barriers ...............................................................................................................13 10.5. Retail and Wholesale Reference Prices .......................................................................13 2 11. POTENTIAL BUYERS IN THE MARKET .............................................................................14 11.1. Representation companies in Panama .........................................................................14 11.2. Strategy Identification ...................................................................................................14 11.3. Selection Criteria for Importer-Distributor in Panama....................................................15 CHARTS Chart No. 1: Import to the Republic, According to Tariff Description and Country of Origin: Year 2017 ...................................................................................................... 5 Chart No. 2: Export from the Republic, According to Tariff Description and Country of origin: Year 2017 ....................................................................................................... 6 Chart No. 3: Food Fairs .............................................................................................................. 11 Chart No. 4: Spices and Condiments Industrials and Distributors ............................................... 15 Chart No. 5: Spices and Condiments Importers ......................................................................... 16 3 1. INTRODUCTION 1.1. Objective This document intends to inform about the composition of the Panamanian Condiments and Seasonings market belonging to the HS code 2103.90.39, in order to understand the behavior of the market to successfully introduce this type of Indonesian products into Panama. 1.2. Methodology Different sources have been consulted to obtain information on this tariff item, such as the statistical data of the General Comptroller of the Republic of Panama and the National Customs Authority (ANA). In addition, the Panamanian Food Safety Authority (AUPSA) and the National Directorate of Technical and Industrial Standards of the Ministry of Commerce and Industries were consulted. The data presented in this research is based upon the information available during the research process and reflects the lack of updated information and limited access to certain institutions. 2. PRODUCT DESCRIPTION Condiments, Spices and Seasonings compounds and products are pre-made for human consumption, to be used for food preparations. It is understood by seasoning any food substance aimed at enhancing the taste of food, conferring or nuancing flavor to culinary preparations and getting more original and appetizing dishes. Sometimes they are also used as natural preservatives in different types of foods. The term seasoning includes both substances obtained naturally and artificially or industrially modified, so we refer to different types of herbs, spices, aromas and essences, seasoning blends, among many others. 3. CURRENT MARKET Based on inquiries made to companies in the sector, it is worth noting that Panamanians consume the products of the national industry dominated by brands such as Proluxa, La Doña, Keiko, Grajasa, among others. In addition, products are imported from internationally renowned brands from the United States. However, they also consume various emerging brands manufactured in China and many others created by both local distributors and supermarket chains. Up until 2012, the supply of spices and food seasonings in the Panamanian market was in the hands of local companies such as Productos Lux, S.A. (Proluxsa), Keiko Products and La Doña Products. The production in Panama is concentrated in spices such as oregano, bay leaf, thyme, annatto, paprika, curry, chicken seasonings, garlic powder marinade, cinnamon powder and sticks. However, these companies had to start competing with one of the giants of the world food market, since Nestlé made the decision to enter this niche through a new line of products of its Maggi brand. According to Nestlé, a series of market studies and direct demands of Panamanian housewives finally led the company to enter this business after many decades of presence in the market of consommés, soups and tomatoes in Central America and Panama. 4 The new Nestlé line is called Spices & Seasonings Maggi and currently has a wide variety of products, such as ground garlic, garlic salt, onion salt, ground cinnamon, ground pepper, whole seasoning and ground oregano. In addition, it contains a tenderizer that makes the process of cooking meat easier. The Spices & Seasonings Maggi come in two presentations, laminated envelopes and jars, both designed with special consideration in the conservation of the properties of spices and to avoid waste. 4. FOREIGN TRADE 4.1 Imports CHART No. 1 IMPORT TO THE REPUBLIC, ACCORDING TO TARIFF DESCRIPTION AND COUNTRY OF ORIGIN. YEAR 2017. CODE Tariff Description and Country Total CIF Value Unit (in Dollars) 2103.90.39.00 Condiments and seasonings, except for 7,302,762 sausage manufacturing Germany 22,874 Warehouses (Panama) 24,763 Austria 8,653 Brazil 389,581 Canada 30,186 Chile 25,484 China (Continental) 43,915 China-Taiwan (Formosa). 298 Colombia 172,209 South Korea 3,207 Costa Rica 643,702 Denmark 1,676 El Salvador 288,497 Spain 538,899 United States of America 2,776,076 France 286 Guatemala 2,089,142 Hong Kong 759 Italy 50,159 Japan 20,638 Malaysia 162 Mexico 50,335 Dominican Republic 169 Venezuela 2,371 Colon Free Zone (Panama) 117,043 Processing Zones (Panama) 1,678 5 4.2 Exports CHART No. 2 EXPORT TO THE REPUBLIC ACCORDING TO TARIFF DESCRIPTION AND COUNTRY OF ORIGIN. YEAR 2017. CODE COUNTRY AND TARIFF DESCRIPTION FOB VALUE (IN DOLLARS) 2103.90.39.00 Condiments and seasonings, except for sausage manufacturing Chile 212,809 Costa Rica 91,065 Cuba 2,093 Dominican Republic 2,425 5. MARKET SIZE The population of Panama is 3.5 million inhabitants, according to data from the last Population and Housing
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