If you like a drink while travelling, Panama can be a surprisingly affordable country. Alcohol prices vary enormously depending on where you buy it, however. A beer bought from a supermarket, a small local shop, a hostel, a beach bar and an upscale cocktail bar can feel like five completely different countries.
The biggest secret to drinking cheaply in Panama is simple: buy local and buy it yourself. Local beer, rum and seco can be remarkably inexpensive when purchased from supermarkets or smaller shops. Imported wine, premium whisky and cocktails in fashionable areas of Panama City are a completely different story.
Current supermarket prices give a good idea of the range. Super Xtra, for example, currently lists individual beers for well under $1 in some cases, twelve packs of local beer around $7 to $10, a litre of Seco Herrerano around $7, and a litre of Ron Abuelo 7 Years around $21.50.
So yes, alcohol can be cheap in Panama, particularly if you drink what Panamanians actually drink.
Beer is probably the easiest place to start
Beer is everywhere in Panama.
The big local names include Panamá, Balboa, Atlas and Soberana, and they are generally much cheaper than imported beers. You will also find international brands such as Corona, Heineken and others.
This is where Panama becomes particularly friendly to backpackers. A local beer purchased from a supermarket or small shop can cost less than a dollar depending on the brand, size and promotion. Current Super Xtra listings show several local beers around the $0.50 to $0.70 range per can or bottle, with some twelve packs under $10.
Of course, don't expect that price in a trendy rooftop bar in Panama City.
The same beer that looks ridiculously cheap in a supermarket can suddenly cost several dollars once someone has carried it to your table, opened it, put on some music and provided a view of the Pacific Ocean.
That's the international law of beer.
Buying beer from a supermarket
For the cheapest drinking, supermarkets are one of your best friends.
Large supermarkets such as Super Xtra carry huge selections of beer, rum, whisky, vodka, tequila and wine. PriceSmart also has a dedicated liquor section with beer, rum, whisky, gin, tequila, vodka and several types of wine.
This is where buying a six pack or twelve pack makes sense.
You can fill your refrigerator before heading to the beach, take a few beers to your hostel, or stock up before going somewhere more remote.
Supermarkets also tend to have regular promotions, so prices can change considerably depending on what happens to be on sale.
The little tiendas can be surprisingly cheap
Small neighbourhood shops are another part of the Panamanian drinking landscape.
You will see small stores selling cold beer, soft drinks, snacks and other basics. These can be incredibly convenient because you don't necessarily have to make a special trip to a huge supermarket every time you want a cold beer.
Prices vary, and selection can be much smaller, but for a couple of cold local beers they can be exactly what you need.
They are particularly useful when travelling through smaller towns where there may not be a large supermarket nearby.
Seco Herrerano: the very Panamanian choice
If there is one spirit you should try while in Panama, it is seco.
Seco Herrerano is a Panamanian sugarcane spirit and is one of the country's signature alcoholic drinks. It occupies a slightly unusual position because it isn't simply rum and it isn't really vodka either. It has its own character and is deeply connected to Panamanian drinking culture.
And it is cheap.
Current supermarket listings show a 750 ml bottle of Seco Herrerano for around $8 and a one litre bottle around $7 to $9 depending on the promotion.
That makes it one of the most affordable ways to buy a spirit in Panama.
You will find people drinking it in various mixed drinks, often combined with citrus, fruit juices or soft drinks.
For a traveller, buying a bottle of seco and experimenting with different mixers can be considerably cheaper than ordering cocktails all night.
Rum is another excellent deal
Panama is a rum country, and Ron Abuelo is probably the name most visitors will encounter.
You can find different ages and varieties, from inexpensive bottles intended for mixing to older rums that are better suited to sipping.
The price difference between basic rum and premium aged rum can be enormous. A basic bottle can be quite affordable, while older bottles become much more of a special occasion purchase.
Supermarket prices currently show Ron Abuelo 7 Years at around $21.50 for a one litre bottle.
For someone who likes rum, Panama can be a fun place to experiment because you don't necessarily have to spend a fortune to try something locally produced.
Whisky is a different story
Whisky is where the "Panama is cheap" argument starts becoming less convincing.
You can certainly find inexpensive whisky, but imported premium brands can cost considerably more than local beer or spirits.
For example, current supermarket listings show a 500 ml bottle of Old Parr around $23, while a 750 ml bottle is listed around $28 during a promotion.
You can therefore drink cheaply in Panama if you stick to local products, but if your idea of a good evening involves a bottle of expensive Scotch, Panama isn't suddenly going to turn it into bargain basement alcohol.
Wine is widely available
Wine is also easy to find, particularly in Panama City.
You will see wines from Chile, Argentina, Spain and other wine producing countries. Chilean and Argentine wines are particularly common because of Panama's proximity to South America.
There are inexpensive bottles suitable for dinner and considerably more expensive wines for people who know what they are looking for.
Wine is generally not where Panama shines in terms of ultra cheap alcohol. Local beer and local spirits offer much better value.
But if you want a bottle of Argentine Malbec for dinner, you won't have trouble finding one.
Cocktails are a completely different game
This is where location becomes extremely important.
A bottle of rum from a supermarket might cost you $15 to $25.
A cocktail containing that rum in a fashionable Panama City bar could cost you a similar amount by itself.
You are paying for the bartender, the location, the atmosphere, the glassware, the music, the air conditioning, the view and everything else that comes with drinking somewhere fashionable.
Casco Viejo is a particularly good example.
You can walk through the historic streets and find inexpensive places to drink, but you can also find sophisticated cocktail bars where the experience is aimed at people who are much less concerned about the price.
The same thing happens in beach destinations.
A beer on the beach can be reasonably priced at a casual local establishment.
A cocktail at a stylish beach club can be dramatically more expensive.
Hostels can be a sweet spot
For backpackers, hostels often sit somewhere between supermarket prices and bar prices.
Some hostels sell beer and spirits at reasonable prices because drinking is part of the social experience.
This can be particularly attractive because you aren't just buying alcohol. You are buying into the social environment.
At Lost and Found Hostel in the mountains of Chiriquí, for example, the jungle bar is part of the experience. A local beer, a game of beer pong, a few people sitting around talking and a jungle setting can be a very different night from sitting alone in an expensive cocktail bar.
The interesting thing about a social hostel is that one beer can sometimes turn into an entire evening because people start talking, playing games and making plans for the following day.
That is often what backpackers actually want.
Panama City nightlife costs more
If you are spending your nights around Panama City's more fashionable neighbourhoods, expect to pay considerably more than you would at a supermarket.
Places around areas such as Casco Viejo, Punta Pacifica and other upscale districts can have sophisticated cocktail menus, rooftop bars and international drink selections.
The price isn't necessarily about the alcohol itself.
A $15 cocktail doesn't contain $15 worth of alcohol.
You're paying for the experience.
And sometimes that experience is absolutely worth paying for. Sitting on a rooftop with the Panama City skyline in front of you while drinking a cold cocktail is rather different from drinking a $0.70 beer beside a supermarket.
Both have their place.
Beach towns have their own drinking culture
Places such as Bocas del Toro, Santa Catalina and Playa Venao have developed very different drinking scenes.
Bocas is particularly famous for its nightlife, where bars, hostels and waterfront establishments create a very social backpacker environment.
Santa Catalina tends to have a more relaxed surf and traveller atmosphere.
Playa Venao has a mixture of beach bars, restaurants, hostels and nightlife.
Prices vary dramatically depending on whether you are drinking at a local establishment or somewhere specifically designed for international travellers.
Again, the basic rule applies: local beer is usually the wallet friendly option, imported products and cocktails cost more.
Buying alcohol for a hostel evening
One of the best ways to save money while backpacking is to buy a bottle or six pack from a supermarket and enjoy it at your accommodation where permitted.
This is particularly effective if you are travelling with a group.
Four people sharing a bottle of rum and mixers can spend dramatically less than four people ordering individual cocktails at a bar.
It also creates a very different social atmosphere.
Someone puts music on.
Someone starts playing cards.
Someone produces a deck of UNO.
Someone says they only want one drink.
Three hours later everyone is planning tomorrow's adventure.
This is one of the reasons hostel drinking can be so social. It isn't necessarily about consuming as much alcohol as possible. Often the alcohol is simply the excuse for people to sit together and talk.
Panama City has changing alcohol hours
One thing travellers should be aware of is that alcohol sales are regulated, and the rules can change.
In September 2026, the Municipality of Panama announced new hours for establishments selling alcoholic beverages in the capital. The current rules allow establishments to operate from 9 AM to 3 AM Sunday through Wednesday and from 9 AM to 4 AM Thursday through Saturday, with additional requirements for establishments operating after midnight. There are also special provisions for certain areas and large shopping centres.
So if you are planning a particularly late night, don't assume that every shop or bar can sell alcohol until whatever time you feel like going home.
Rules can also differ according to the type of establishment.
So, is alcohol cheap in Panama?
Yes, if you drink locally and buy intelligently.
Local beer can be extremely inexpensive in supermarkets. Seco is cheap compared with many imported spirits. Panamanian rum can offer good value, particularly compared with premium imported whisky or wine.
But the price can change enormously depending on where you drink.
A rough way of thinking about it is:
Supermarket: cheapest.
Small local shop: cheap and convenient.
Hostel: generally reasonable and social.
Local restaurant: moderate.
Beach bar: varies considerably.
Casco Viejo cocktail bar: potentially expensive.
Upscale rooftop: expensive.
Luxury hotel: bring your wallet.
The great thing for travellers is that Panama lets you choose. You can have a couple of inexpensive local beers and spend very little, or you can dress up, head into Panama City's nightlife and spend considerably more on cocktails.
And perhaps the most Panamanian way to approach it is to try the local stuff first. Have a Panamá or Balboa, try a seco based drink, taste some Ron Abuelo, and then decide whether you really need that $18 imported cocktail.
Sometimes the cheapest drink is also the one that tells you the most about the country.