Tobacco in Dominican Republic
Euromonitor International's Tobacco in Dominican Republic market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 55 | Publication date: Mar 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
A US tax increase on imported cigars may affect the tobacco industry in the Dominican Republic
The Dominican Republic is considered the most important tobacco exporter in the world. The US constitutes its core market. However, a US congressional initiative to increase import taxes on hand-made cigars coming from Honduras, Nicaragua and the Dominican Republic could threaten Dominican exports. In 2007, the tax was at US$0.09 per unit, but the proposal would increase it to US$0.10 per unit. The objective of the increased tax is to provide funds necessary to expand public health insurance to children among families that cannot afford private health insurance. Although US President George W. Bush vetoed the congressional proposal, experts consider it highly probable that congress will take the initiative up again. The passing of such a proposal would cost Dominican tobacco producers millions of dollars in terms of lost jobs and unexported (thus unsold) tobacco products in the Dominican Republic and some other Central American countries.
Profiling Santo Domingo: cigar lounges, a space for luxury and enjoyment
Santo Domingo is a city of tobacco lovers; this is unsurprising, given the country’s deep tobacco tradition. The city has many “cigar lounges” – places exclusively designed for the enjoyment of tobacco. Dominicans look to these establishments to relax and as a meeting place for tobacco lovers. Here they can find the best tobacco in the country, while also enjoying Internet access, nice music, books, conference rooms, private areas and the like. Visiting a cigar lounge is synonymous with having status and style. Guests are used to spending as much as eight hours at one time in such establishments, chatting with friends and enjoying cigars and beverages. Here, tobacco is the common language that makes them feel comfortable. Among the main cigar lounges in Santo Domingo are Cigar Club Arturo Fuente, Cigar World and the Cameroon Cigar Lounge and Store, among others.
Cuba: the main competition for Dominican tobacco
Due to their high quality, Dominican cigars have become the world’s main competitor against Cuban Habanos. The fact that the Dominican Republic shares about 60% of the US market confirms its high quality. Cuba has always had a large cigar tradition, whilst in the Dominican Republic it is more recent. Consumers have perceived that Habanos are stronger, whilst Dominican cigars are softer. However, to further enhance this relative positioning, many consumers point out that Habanos have lost quality due to adverse economic conditions in Cuba, whilst the Dominican Republic has made significant investments in plantations and fertilizers that allow them to keep offering higher-quality products.
Contraband and counterfeit products still threaten the domestic market
In 2007, the recently created, specialised department for the Prevention of Illicit Products of Intabaco succeeded in confiscating thousands of boxes of contraband and counterfeit cigars bound for export as well as national consumption, including famous brands such as Cohíba, Davidoff, Romeo y Julieta, Macanudo, Arturo Fuente, Partagás, etc. Contraband products affect national cigarette and cigar markets, robbing producers and the government from due earnings and taxes.
Awareness of adverse affects of tobacco increases in spite of minimal legislative control
Compared to other countries, the Dominican Republic is quite permissive about tobacco consumption, especially concerning smoking in public areas. Legislation says nothing about this topic. This is why, in many establishments, it is hard to find non-smoking areas, since at first sight such separation would drive away clients. However, Dominicans are becoming more aware of the adverse effects of tobacco, and this change in perception is affecting service industry attitudes towards clients. Some restaurants, bars, cafes have started to offer non-smoking areas in response to customers’ demands, in spite of not being required to do so by any Dominican law.
Table of contents
TOBACCO IN DOMINICAN REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
A US tax increase on imported cigars may affect the tobacco industry in the Dominican Republic
Profiling Santo Domingo: cigar lounges, a space for luxury and enjoyment
Cuba: the main competition for Dominican tobacco
Contraband and counterfeit products still threaten the domestic market
Awareness of adverse affects of tobacco increases in spite of minimal legislative control
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Legislation
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Table 2 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Deaths from Heart Disease 2001-2006
Table 5 Deaths from Lung Cancer 2001-2006
Table 6 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2001-2006
Table 8 Sales of Tobacco by Sector: Value 2001-2006
Table 9 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 10 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 12 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 13 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 16 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 17 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 25 Sales of Cigarettes by Length 2001-2006
Table 26 Sales of Cigarettes by Pack Size 2001-2006
Table 27 Sales of Cigarettes by Pack Type 2001-2006
Table 28 Cigarettes Company Shares 2002-2006
Table 29 Cigarettes Brand Shares 2003-2006
Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 38 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 39 Forecast Sales of Cigarettes by Length 2006-2011
Table 40 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS AND CIGARILLOS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 42 Sales of Cigars by Subsector: Volume 2001-2006
Table 43 Sales of Cigars by Subsector: Value 2001-2006
Table 44 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 45 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 46 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 47 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 48 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 49 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 50 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 51 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO
TABACALERA A FUENTE Y CIA
Strategic Direction
Key Facts
Summary 2 Tabacalera A Fuente y Cia: Key Facts
Company Background
Production by Factory
Competitive Positioning
LEÓN JIMENES GRUPO
Strategic Direction
Summary 3 León Jimenes Grupo: Key Facts
Company Background
Production by Factory
Competitive Positioning
LA TABACALERA CXA
Strategic Direction
Key Facts
Summary 4 La Tabacalera CxA: Key Facts
Company Background
Competitive Positioning