While cigarettes are in decline in the Dominican Republic, consumption of cigars continued to increase in 2021, with a significant increase in volume sales, bolstered by the return of tourists. While most volume sales are for imported brands, local cigars are gaining value share and also a growing international reputation.
La Aurora retained its outright lead in the category in 2021. Its partnership with the brewery Cerveceria Nacional Dominicana guarantees major distribution for La Aurora and its other brands León Jiménez and Principes.
While there has been a gradual decline in the social acceptance of smoking, particularly among higher-income consumers, the situation is different for cigars and social acceptance appears to be on the rise. The recent growth and emergence of cigar clubs and lounges attests to this movement, especially with more affluent young adults.
Cigars will continue to be seen in the Dominican Republic as a symbol of status and this will support healthy volume growth over the forecast period and also a degree of premiumization. Also, a key consumer bases of cigars is foreign tourists, particularly at airport duty free outlets.
Although women represent a very small segment of cigar smokers, their numbers are growing and will continue to do so over the forecast period. Players are aware of this growing consumer base and are launching cigars targeted specifically at women.
Cigarillos are much less significant in terms of volume sales. However, their popularity is growing, though not as much as cigars.
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Cigars, Cigarillos and Smoking Tobacco
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