Bottled Water in Dominican Republic

2020 IMPACT

Shutdown, panic buying shape volume sales of bottled water

Total sales of bottled water are set to see a slight dip in total sales as a direct result of COVID-19. At the beginning of the pandemic, the Dominican Republic shuttered foodservice outlets including cafés, bars and restaurants for all business except takeaway and home delivery, and although the government began to ease lockdown in June, outlets still remain closed to dine-in consumers in September 2020.

Pack sizing preferences are being shifted by virus

The virus has also reshaped packaging trends in bottled water in 2020. Off-trade volume sales are dominated by the traditional grocery retailers known as colmados, which are highly localised and typically offer credit and very short-range home delivery.

COVID-19 accelerates migration to healthier options

Health awareness has unsurprisingly risen in 2020, as consumers reassess their diets in response to the pandemic. There are already underlying health and wellness trends that have seen consumers switch away from sugary carbonates and juices that have driven volume and value sales of bottled over the review period; the pandemic has accelerated them.

RECOVERY AND OPPORTUNITIES

Wellness trends open door for future product development

Bottled water holds significant growth potential for the forecast period, driven by strengthening health trends. This will continue to support sales of still purified bottled water, the largest product group, as consumers seek out healthier refreshment trends.

Emerging premiumisation trends set to return

Prior to the onset of the pandemic, consumer demand for premium positioned products was beginning to emerge in in bottled water, although it was largely limited to imported carbonated bottled water and mineral bottled water brands. This trend is set to be hit by the virus – the country faces a significant economic shock from COVID-19, including a spike in unemployment and as a result price sensitivity is on the rise.

Evolution of bottled water offer will shift retail share, build private label

In 2020, sales of bottled water continued to be dominated by traditional grocery retailers. These colmados, however, look set to see share eroded over the forecast period by modern grocery retailers, who have benefited from demand for larger pack sizes during 2020 that smaller stores struggled to meet.