Soft Drinks - Dominican Republic

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

Customer preferences: Dominican consumers have shown a growing preference for soft drinks as a refreshing beverage option. The hot and tropical climate of the country makes soft drinks a popular choice for quenching thirst and providing relief from the heat. Additionally, the younger population in Dominican Republic has a strong affinity for soft drinks, with carbonated beverages being particularly popular among this demographic.

Trends in the market: One of the key trends in the Soft Drinks market in Dominican Republic is the increasing demand for healthier and natural options. As consumers become more health-conscious, there has been a shift towards low-sugar and natural ingredient-based soft drinks. This trend is driven by the growing awareness of the negative health effects of excessive sugar consumption and the desire for healthier lifestyle choices. Another trend in the market is the rising popularity of flavored and functional soft drinks. Consumers are seeking new and unique flavors, as well as beverages with added health benefits such as vitamins, minerals, and antioxidants. This trend is driven by the desire for variety and the perception that functional beverages can contribute to overall well-being.

Local special circumstances: The tourism industry plays a significant role in the Soft Drinks market in Dominican Republic. As one of the most popular tourist destinations in the Caribbean, the country attracts a large number of international visitors who contribute to the demand for soft drinks. The presence of all-inclusive resorts and beachside bars also drives the consumption of soft drinks among tourists.

Underlying macroeconomic factors: The overall economic growth and stability of Dominican Republic have also contributed to the development of the Soft Drinks market. As the country's economy continues to grow, disposable incomes are increasing, allowing consumers to spend more on non-essential items such as soft drinks. Additionally, the urbanization and modernization of the country have led to changes in lifestyle and consumption patterns, with soft drinks becoming a staple in many households. In conclusion, the Soft Drinks market in Dominican Republic is experiencing growth due to customer preferences for refreshing beverages, the demand for healthier and natural options, and the popularity of flavored and functional soft drinks. The tourism industry and the country's economic growth also play a significant role in driving the market.

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.