Smoking prevalence continued to fall in 2021 and this led to less cigarettes being consumed. Due to raised health concerns, many smokers are choosing to quit or migrate to perceived reduced harm alternatives, such as e-vapour or heated tobacco products.
In line with Phillip Morris's global strategy to merge with local brands, Phillip Morris announced Nacional was to be renamed as Marlboro Selección Artesanal in September 2021. Historically Nacional has been the leading brand in cigarettes in the Dominican Republic.
Illicit trade continued to dampen volume sales in 2021, accounting for 42% of volume sales, though this was a decline from the previous year. With cigarette players losing out on value sales and the government losing out on significant tax revenues, a public-private partnership between Phillip Morris and the customs office was set up to combat illicit trade.
Cigarettes will register a further fall in volume sales over the forecast period. Health concerns will lead to some smokers quitting smoking all together or others switching to less harmful alternatives such as e-vapour or heated tobacco products.
There are potential headwinds on the horizon. General price rises were significant in 2021 and if this continues over the forecast period, as pressures such as rising global energy prices and continuing global supply constraints feeds into further price rises, this will dampen volume demand.
Over the forecast period, the traceability law for legal tobacco will be reimplemented after being put on hold during the pandemic. This will include the sealing of cigarette packages with an identification number on it to prevent illicit trade, however, in order for this to work, the government will need consumers to participate Likewise, the president of the Dominican Republic has announced plans to construct a wall on the border of Haiti in order to prevent counterfeit products coming in.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Dominican Republic with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).See All of Our Definitions
This report originates from Passport, our Cigarettes research and analysis database.
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