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

The Ready-to-Drink (RTD) Coffee 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 increased demand for RTD coffee. The busy lifestyles of urban consumers and the desire for quick and easy refreshment options have driven the popularity of RTD coffee in the country. Additionally, the younger generation, in particular, is attracted to the trendy and modern image associated with RTD coffee.

Trends in the market: One of the key trends in the RTD coffee market in Dominican Republic is the introduction of innovative flavors and varieties. Manufacturers are constantly launching new products to cater to the diverse tastes and preferences of consumers. This includes flavors like caramel, mocha, and vanilla, as well as options for different levels of sweetness and creaminess. These innovative flavors and varieties are aimed at attracting new consumers and keeping existing ones interested in the category. Another trend in the market is the increasing availability of RTD coffee in different distribution channels. While traditional retail outlets like supermarkets and convenience stores remain the dominant channels for RTD coffee sales, there has been a rise in the presence of RTD coffee in cafes, restaurants, and even vending machines. This expansion of distribution channels has made RTD coffee more accessible to consumers, further driving its growth in the market.

Local special circumstances: Dominican Republic has a strong coffee culture, with coffee being an integral part of the daily routine for many locals. This cultural affinity for coffee has played a significant role in the growth of the RTD coffee market. Consumers are already familiar with the taste and aroma of coffee, making it easier for them to adopt RTD coffee as a convenient alternative.

Underlying macroeconomic factors: The overall economic growth and increasing disposable income in Dominican Republic have also contributed to the development of the RTD coffee market. As consumers have more purchasing power, they are more willing to spend on premium and convenient products like RTD coffee. This has created a favorable environment for the growth of the market. In conclusion, the Ready-to-Drink (RTD) Coffee market in Dominican Republic has been growing due to customer preferences for convenience and on-the-go products, the introduction of innovative flavors and varieties, the increasing availability of RTD coffee in different distribution channels, the strong coffee culture in the country, and the underlying macroeconomic factors such as economic growth and increasing disposable income.

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.