- A draconian fiscal austerity package implemented by the government since 1 January 2013 led to increases in absolutely all types of taxes collected by the government, including the elimination of valued added tax exemptions to many staple food items. Value added taxes, which are charged to cigarettes as well, grew by 13%, while the specific excise tax for cigarettes increased by 12%. The austerity package also included government spending cuts. As a result, the economy suffered the worst economic slowdown in ten years and worried consumers tried to cut or optimise their spending across all consumer goods categories. In that consumer mood, cigarettes was a top target for saving. That was reflected in the substantial drop in average daily consumption (-6%) and the massive push for downtrading in its two forms: for illicit cigarettes, and for cheaper licit cigarettes.
- The cigarette category in the Dominican Republic could be characterised as a duopoly with a dominant player. The two multinational companies in the category, Philip Morris Dominicana and BAT Republica Dominicana, hold a combined volume share of 95% (even higher in terms of value). However, Philip Morris by itself commands 84% of the market in volume terms, so its dominance is clear. What makes the category not a de facto monopoly is the strength of BAT in the economy segment, which has been growing and is set to grow even more. Philip Morris has maintained its leadership since it acquired the then leader, Industria del Tabaco Leon Jimenes, in 2006. La Tabacalera has undergone a process of privatisation and at this point in time, only 50% of its shares remain in the hands of the government. It is not clear if the government will continue selling its shares in the company or if the process will stop where it is. Only if another multinational player takes control of La Tabacalera will this privatisation process have any impact on the category. If private investors only take shares and leave the management of the company (and its brand portfolio), it is not likely that La Tabacalera will turn around its long-term decline.
- Cigarettes is expected to have a flat CAGR in value terms at constant 2013 prices over the forecast period. The only tax-driven price increases are expected to come over the forecast period from the specific excise tax. This would exert less pressure on prices when compared with years like 2013 in which that increase came together with VAT increase.
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Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in Dominican Republic with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Cigarettes industry in Dominican Republic, our research will save you time and money while empowering you to make informed, profitable decisions.
The Cigarettes in Dominican Republic market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports, and exports of finished cigarettes
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Cigarettes in Dominican Republic?
- What are the major brands in Dominican Republic?
- What is the legislative environment like in Dominican Republic?
- What are the rates of cigarette taxation in Dominican Republic?
- Do premium, mid-price or economy cigarettes dominate in Dominican Republic?
- What is the rate of illicit trade in Dominican Republic?
- How many smokers are there in the country?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Tobacco market research database.
Table of Contents
Cigarettes in Dominican Republic - Category Analysis
NEW PRODUCT DEVELOPMENTS
- Summary 1 Cigarettes: New Product Launches
Cigarettes: price bands
- Summary 2 Cigarette Price Band Definitions
Cigarettes: tobacco blend
Cigarettes: carbon/standard filter
Cigarettes: filter length
Cigarettes: regular vs slims vs superslims vs microslims
Cigarettes: pack size
Cigarettes: pack type
- Table 1 Sales of Cigarettes by Tar Level: Volume 2008-2013
- Table 2 Sales of Cigarettes by Tar Level: Value 2008-2013
- Table 3 Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
- Table 4 Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
- Table 5 Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
- Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2008-2013
- Table 7 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
- Table 8 Sales of Cigarettes by Filter vs Non-filter: % Volume 2008-2013
- Table 9 Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2008-2013
- Table 10 Sales of Cigarettes by Length: % Volume 2008-2013
- Table 11 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2008-2013
- Table 12 Sales of Cigarettes by Pack Size: % Volume 2008-2013
- Table 13 Sales of Cigarettes by Pack Type: % Volume 2008-2013
- Table 14 NBO Company Shares of Cigarettes: % Volume 2009-2013
- Table 15 LBN Brand Shares of Cigarettes: % Volume 2009-2012
- Table 16 Sales of Cigarettes by Distribution Format: % Volume 2008-2013
- Table 17 Production, Imports and Exports of Cigarettes: Total Volume 2008-2013
- Table 18 Forecast Sales of Cigarettes by Tar Level: Volume 2013-2018
- Table 19 Forecast Sales of Cigarettes by Tar Level: Value 2013-2018
- Table 20 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2013-2018
- Table 21 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2013-2018
- Table 22 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2013-2018
- Table 23 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2013-2018
- Table 24 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2013-2018
- Table 25 Forecast Sales of Cigarettes by Filter vs Non-filter: % Volume 2013-2018
- Table 26 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2013-2018
- Table 27 Forecast Sales of Cigarettes by Length: % Volume 2013-2018
- Table 28 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
- Table 29 Forecast Sales of Cigarettes by Pack Size: % Volume 2013-2018
- Table 30 Forecast Sales of Cigarettes by Pack Type: % Volume 2013-2018
Cigarettes in Dominican Republic - Company Profiles
La Tabacalera CxA in Tobacco (Dominican Republic)
- Summary 3 La Tabacalera CxA: Key Facts
- Summary 4 La Tabacalera CxA: Competitive Position 2013
Tobacco in Dominican Republic - Industry Context
One of the worst category declines ever because of fiscal reform
Illicit trade skyrockets
Philip Morris Dominicana SA under attack
Colmados remain unchallenged as the main sales channel
Volume decline to smooth out over the forecast period
- Summary 5 Legislation Summary at a Glance
Minimum legal smoking age
- Table 31 Smoking Prevalence in Adult Population 2008-2013
- Table 32 Number of Adult Smokers by Gender 2008-2013
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) regulation
Flavoured tobacco product ban
Death by cause
- Table 33 Death by Cause 2009-2013
TAXATION AND PRICING
Duty paid packet marks
- Table 34 Taxation and Duty Levies 2008-2013
Average cigarette pack price breakdown
- Table 35 Average Cigarette Pack Price Breakdown: Brand Examples
- Table 36 Trade Statistics – Cigarettes 2008-2013
- Table 37 Trade Statistics – Tobacco Leaf 2008-2013
- Table 38 Trade Statistics – Cigarettes 2009-2013
Illicit trade in cigarettes
- Table 39 Illicit Trade Estimate of Cigarettes: Volume 2008-2013
- Table 40 Sales of Tobacco by Category: Volume 2008-2013
- Table 41 Sales of Tobacco by Category: Value 2008-2013
- Table 42 Sales of Tobacco by Category: % Volume Growth 2008-2013
- Table 43 Sales of Tobacco by Category: % Value Growth 2008-2013
- Table 44 Forecast Sales of Tobacco by Category: Volume 2013-2018
- Table 45 Forecast Sales of Tobacco by Category: Value 2013-2018
- Table 46 Forecast Sales of Tobacco by Category: % Volume Growth 2013-2018
- Table 47 Forecast Sales of Tobacco by Category: % Value Growth 2013-2018
- Summary 6 Research Sources