Panama City › Food & grocery
Filling the fridge
Grocery Stores in Panama City
Grocery stores in Panama City sort themselves by price and by how many imported brands they stock. Riba Smith anchors the top, Super 99 and Xtra the value end. Basic food carries no sales tax here. Produce, though, is cheaper at a frutería than at any supermarket.
Before you shop
What to Know
TAX
Food carries no sales tax
Panama’s 7% ITBMS does not apply to food, medicines, or agricultural products, per the tax authority’s own exemption list. Your grocery receipt is largely tax free. The taxed lines are alcohol at 10%, tobacco at 15%, and household goods at 7%.
COST
A local basket runs about $365
The government prices a 59-item food basket for a 3.5-person household monthly. In March 2026 it came to $365.88 for Panama City. That covers local staples only. Imported brands, wine, and cleaning products all sit on top of that number.
MARKETS
Merca Panamá replaced Abastos
The old Mercado de Abastos closed in 2018. Merca Panamá on Vía Centenario took over, open Monday to Saturday from 5am, closed Sundays. Bring cash, bring Spanish, and buy in volume. The seafood market on Avenida Balboa closes the third Monday of each month.
CHECKOUT
Tip the bagger, carry Yappy
Baggers at the major chains work for tips, and $0.50 to $1.00 per trip is customary. Cards work everywhere in the city, but fruterías and the markets are cash. Yappy, Panama’s mobile payment app, is close to universal once you have a local bank account.
Common questions
Frequently Asked Questions
How much do groceries cost per month in Panama City?
The government’s food basket for a 3.5-person household came to $365.88 in March 2026. It has barely moved year over year. A couple eating local staples lands well below that. Meanwhile, a household buying imported brands can easily double it. Panama’s consumer authority publishes monthly basket prices by supermarket. That is the fastest way to see who is actually cheapest.
Which supermarket carries American and imported brands?
Riba Smith is the long-standing answer and has the widest imported selection, covering American, European, and Asian products. Supermercados Rey is the mainstream runner-up. Organica handles organic, gluten-free, and supplements, with branches in Paitilla, Costa del Este, San Francisco, and Clayton. Felipe Motta covers wine, craft beer, and gourmet.
Is a PriceSmart membership worth it?
That depends on your household size and your freezer. Diamond membership costs $40 a year plus 7% tax, and Platinum runs $80 plus tax. Each tier includes a second card. The per-unit savings are real on US brands and bulk staples. For two people with limited storage, though, the payback is slower than people expect.
Do supermarkets in Panama City deliver?
Most do. Riba Smith and Supermercados Rey both run their own apps with home delivery and order tracking. PedidosYa, formerly Appetito24, covers supermarkets and pharmacies alongside restaurants, and Uber Eats operates here too. Super Xtra is the notable exception with no delivery service.
How much do I tip the bagger at the supermarket?
Between $0.50 and $1.00 per trip is the customary range, and it is expected rather than optional in spirit. Keep small coins in the car. The empacadores at the major chains depend on it, and skipping it is noticed.
Do retirees get a discount on groceries in Panama?
No, and this is one of the most repeated pieces of bad information about Panama. Law 6 of 1987 grants 22 benefits to jubilados and pensionados, and not one covers supermarkets or general retail. What the law does give: 25% off restaurant meals, 15% at franchised fast food, and 10% on prescription medicines. If a supermarket offers a seniors discount, it is a store promotion rather than a legal right.
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