Beer - Dominican Republic

The Beer market in Dominican Republic has been experiencing significant growth in recent years.

Customer preferences: Dominicans have shown a growing preference for beer over other alcoholic beverages. This can be attributed to several factors, including the country's warm climate and the popularity of outdoor activities. Beer is often seen as a refreshing and enjoyable drink to be consumed during social gatherings and leisure time. Additionally, the younger population in Dominican Republic has been increasingly embracing the beer culture, leading to a surge in demand for different types and flavors of beer.

Trends in the market: One of the key trends in the beer market in Dominican Republic is the rise of craft beer. Craft breweries have been gaining popularity in recent years, offering consumers a wider variety of flavors and styles. This trend is in line with the global craft beer movement, where consumers are seeking unique and high-quality beer experiences. Craft breweries in Dominican Republic are capitalizing on this trend by producing small batches of beer with locally sourced ingredients, appealing to consumers who value authenticity and local flavors. Another trend in the market is the increasing demand for low-alcohol and non-alcoholic beer. Health-conscious consumers are looking for alternatives to traditional beer that are lower in calories and alcohol content. This trend is driven by a growing awareness of the negative health effects of excessive alcohol consumption. Beer companies in Dominican Republic are responding to this demand by introducing new products that cater to this segment of the market, offering a wider range of options for consumers.

Local special circumstances: Dominican Republic is a popular tourist destination, attracting millions of visitors each year. The tourism industry plays a significant role in the beer market, as tourists often indulge in local cuisine and beverages during their stay. Beer companies in Dominican Republic have capitalized on this by promoting their products to tourists, offering unique flavors and experiences that showcase the local culture. Additionally, the country's strong cultural ties to the Caribbean region have influenced the beer market, with consumers showing a preference for tropical flavors and light, refreshing beers.

Underlying macroeconomic factors: The steady economic growth in Dominican Republic has contributed to the development of the beer market. As disposable incomes rise, consumers have more purchasing power and are able to spend more on discretionary items such as beer. The country's favorable business environment and supportive government policies have also encouraged investment in the beer industry, leading to increased production capacity and innovation. Furthermore, the government's efforts to promote tourism and attract foreign investment have had a positive impact on the beer market, as it has created opportunities for beer companies to expand their customer base and reach a wider audience. Overall, the combination of changing consumer preferences, local special circumstances, and underlying macroeconomic factors has created a favorable environment for the growth of the beer market in Dominican Republic.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.