Ready-to-Drink (RTD) Coffee & Tea - Dominican Republic

The Ready-to-Drink (RTD) Coffee & Tea market in Dominican Republic has been experiencing significant growth in recent years.

Customer preferences: Dominican consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the increasing popularity of ready-to-drink coffee and tea. Busy lifestyles and the need for quick and easy refreshment options have driven the demand for these beverages. Additionally, the younger generation, who are more open to trying new and innovative products, have embraced the RTD coffee and tea trend.

Trends in the market: One of the key trends in the RTD coffee and tea market in Dominican Republic is the introduction of new flavors and variants. Manufacturers are constantly innovating to cater to the diverse taste preferences of consumers. This includes flavors such as caramel, vanilla, and mocha in coffee, and fruity and herbal blends in tea. The availability of a wide range of flavors has attracted consumers and contributed to the growth of the market. Another trend in the market is the increasing focus on health and wellness. Consumers are becoming more conscious of their dietary choices and are seeking healthier options. As a result, there has been a rise in demand for RTD coffee and tea products that are low in sugar, fat-free, and made with natural ingredients. Manufacturers have responded to this trend by introducing healthier alternatives, such as unsweetened and organic options, to cater to the growing health-conscious consumer base.

Local special circumstances: The Dominican Republic is known for its coffee production, which has had a positive impact on the RTD coffee market. The country's rich coffee heritage and reputation for producing high-quality beans have created a sense of trust and credibility among consumers. This has led to a preference for locally sourced and authentic coffee products, driving the demand for RTD coffee in the market.

Underlying macroeconomic factors: The Dominican Republic has experienced steady economic growth in recent years, which has contributed to the increasing purchasing power of consumers. As disposable incomes rise, consumers have more discretionary income to spend on convenience products like RTD coffee and tea. This has created a favorable market environment for the growth of the RTD coffee and tea market. In addition, the tourism industry in the Dominican Republic has also played a role in the growth of the RTD coffee and tea market. The country attracts a large number of international tourists, who often seek familiar and convenient beverage options. This has led to an increase in demand for RTD coffee and tea products in hotels, resorts, and other tourist destinations. Overall, the Ready-to-Drink (RTD) Coffee & Tea market in Dominican Republic is developing due to changing customer preferences, including a preference for convenience and on-the-go products, the introduction of new flavors and variants, and a growing focus on health and wellness. Local special circumstances, such as the country's coffee heritage, and underlying macroeconomic factors, such as economic growth and tourism, have also contributed to the market's development.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.