Executive Summary

Sep 2019
Prospects
Cheese continues to see steady sales growth due to popularity and local production

Steady growth continues in cheese sales as the Dominican Republic is a major market for cheese. There are over 400 small and medium-sized companies dedicated primarily to making cheese.

Drought in Dominican Republic has adverse effect on local milk production and thus also on cheese production

Extreme drought has affected the country since 2018, with conditions worsening in 2019. The ongoing severe weather conditions are having a negative impact on dairy cattle and milk production, as a result of a curtailment of water consumption and prohibitions on various types of planting.

Favourable trade agreements allow for growth in imported cheese

Imported cheeses are already seeing growth in the Dominican Republic. Although consumers are accustomed to local cheeses, imported cheeses (both hard and soft) have achieved favourable sales growth as prices have become more competitive.

Competitive Landscape
Locally-produced cheese brands continue to dominate, with Sosua retaining lead

Sosua, the flagship brand of Sigma Alimentos Dominicana SA, retained its leading value share of cheese in 2019, bolstered by its strong sales of cheddar over the review period. The brand enjoys an extensive distribution network and broad coverage throughout the Dominican Republic.

Sales remain fragmented while private label has a gradually increasing presence

Cheese in the Dominican Republic remains fragmented. While sales are dominated by locally-produced brands, the presence of a high number of brands makes the competitive landscape highly fragmented.

Imports increase as local producers widen portfolios by distributing imported cheese brands

Imported cheese offerings are growing in the Dominican Republic but also remain fragmented. Some local firms manufacture and distribute cheese, but also import certain brands for distribution.

Prospects
Growing preference for liquid milk sees new brands and options becoming available with players able to expand

Over the review period, there was much dynamism in liquid milk as Dominicans increasingly opted for the convenience of liquid milk rather than purchasing powder milk, as they did historically. This was partly thanks to rising purchasing power as a result of strong economic growth in the country.

Powder milk remains popular only among a small group of consumers

Powder milk is still losing consumers as Dominicans continue to migrate towards liquid milk, notably full fat shelf stable milk which dominates sales. Traditional levels of powder milk consumption are a thing of the past as consumers favour more convenient RTD options, frequently in 1-litre aseptic packaging or smaller individual portions of 200ml which are mainly aimed towards children.

Drought in Dominican Republic has serious effect on milk production

The Dominican Republic experienced extreme drought in 2018 and conditions deteriorated at the beginning of 2019. The situation has been dire in several parts of the country and has approached crisis level in some areas.

Competitive Landscape
Rica continues to lead but faces challenge from brands capitalising on ongoing shift towards liquid milk

Pasteurizadora Rica SA continued to lead drinking milk products in 2019 as a result of its strong distribution network throughout the Dominican Republic. The company has led liquid milk for many years and is benefiting further from consumers increasingly shifting towards liquid milk from powder milk.

Gains and losses seen among new entrants battling to challenge Rica’s lead in liquid milk

Despite Pasteurizadora Rica maintaining its dominant position in milk, there remains room for more players to enter. During the latter part of 2018, La Fabril SA launched Kanny Liquida.

Monte Leche makes a notable entry into shelf stable milk

Another interesting development was the launch of Monte Leche in late 2018. This is a brand of shelf stable milk produced by AGAMPTA, a dairy producers association from the province of Monte Plata.

Prospects
Healthy options and interesting flavours keep yoghurt sales buoyant

In 2019, further growth was seen in sales of yoghurt in the Dominican Republic as many options and new brands and products attracted greater numbers of new consumers. Adult consumers, in particular, have been attracted by the widening offer of new yoghurt textures and consistencies.

Drinking yoghurt attracts consumers via its convenience and wide variety of flavours

Drinking yoghurt continues to dominate overall sales of yoghurt in the Dominican Republic. It is preferred over traditional spoonable yoghurt, despite the boom in Greek yoghurt and the introduction of new brands and formats, as local consumers appreciate its convenience.

Wider distribution, offer of local flavours and yoghurt’s image as a nutritious snack will all boost sales

Sales of yoghurt are expected to continue seeing growth over the forecast period as new products make their way into additional distribution channels, such as independent small grocers. Locally-produced yoghurts are expected to continue dominating overall sales over the forecast period.

Competitive Landscape
Induveca extends lead with Yoka and portfolio of imported brands

Induveca SA continues to lead yoghurt sales with its popular Yoka brand. Yoka is a well-established brand supported by an extensive distribution network in the Dominican Republic.

Rica’s entry into yoghurt is expected to shake up competition

Yoghurt in the Dominican Republic is still dominated by just a few key players, notably Induveca SA and Sigma Alimentos Dominicana SA. Other players include Agroindustrial Los Angeles SRL with the Elite brand and Grupo San Juan SAS with San Juan.

International brands may increase share following new launches and production investment

Some international brands are present in yoghurt in the Dominican Republic, such as La Yogurt, but they have a relatively small value share compared to that held by domestic brands. Nevertheless, Dos Pinos from Costa Rica is a brand to watch over the forecast period.

Prospects
Condensed milk dominates and sees highest growth due to being widely used for many purposes

Condensed milk remains the biggest category within other dairy in the Dominican Republic. The product is widely consumed by all socioeconomic groups and is available in many distribution channels throughout the country.

Cream sales expand steadily benefiting from wide range of products and uses

Cream, which is the second biggest category within other dairy, continues to achieve steady growth in the Dominican Republic. It is a valued dairy product, used by many consumers in the preparation of different savoury and sweet dishes, including sauces, soups, desserts, and sweetened beverages.

Dairy desserts benefit from appeal of small packs as a portion-controlled indulgence

Chilled and shelf stable desserts also continued to see growth in 2019, contributing to the overall growth of other dairy in the Dominican Republic. Pudding cups and chilled individual dairy desserts continue to see growth, in both retail and foodservice channels, as consumers favour smaller-sized indulgences.

Competitive Landscape
Consumer trust and affordable prices keeps Nestlé at the top of other dairy

Nestlé Dominicana SA continues to dominate other dairy in the Dominican Republic with its flagship brand, Carnation, in condensed milk. Plain condensed milk is the most popular variety but sweetened condensed milk, lactose-free and light plain condensed milks are also available, along with a cheese-flavoured option.

Pasteurizadora Rica dominates cream but competition is set to intensify

Pasteurizadora Rica SA, in second place, remains strong in other dairy, bolstered by steadily increasing sales of condensed milk and cream, the latter of which it dominates in the Dominican Republic. Pasteurizadora Rica is the largest milk processor in the country and benefits from an extensive distribution network.

Private label slowly increases presence in other dairy via modern grocery retailers

Private label remains present in other dairy, especially in coffee whiteners and cream, but faces strong competition from both local and imported brands. Private label, which is also seen in evaporated milk and some condensed milk, is limited to select modern grocers which have the resources available to support these lines.

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Dairy in Dominican Republic

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy 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 Dairy industry in Dominican Republic, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy 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  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Dominican Republic?
  • What are the major brands in Dominican Republic?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

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 Packaged Food market research database.

Dairy in Dominican Republic - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Butter remains popular but innovation may help deal with competition from healthier options
Dominican consumers continue to move towards healthier vegetable-based spreads
Private label has negligible presence but unpackaged products are widely available

COMPETITIVE LANDSCAPE

Varied portfolio of local and imported spreads keeps Mercasid in leading position
Sosua and Rica benefit from long-established and extensive distribution and consumer recognition and trust
Local players control butter and spreads but imported brands slowly carve out niche

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Cheese continues to see steady sales growth due to popularity and local production
Drought in Dominican Republic has adverse effect on local milk production and thus also on cheese production
Favourable trade agreements allow for growth in imported cheese

COMPETITIVE LANDSCAPE

Locally-produced cheese brands continue to dominate, with Sosua retaining lead
Sales remain fragmented while private label has a gradually increasing presence
Imports increase as local producers widen portfolios by distributing imported cheese brands

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 NBO Company Shares of Cheese: % Value 2015-2019
Table 18 LBN Brand Shares of Cheese: % Value 2016-2019
Table 19 Distribution of Cheese by Format: % Value 2014-2019
Table 20 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 21 Forecast Sales of Cheese by Category: Value 2019-2024
Table 22 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

Growing preference for liquid milk sees new brands and options becoming available with players able to expand
Powder milk remains popular only among a small group of consumers
Drought in Dominican Republic has serious effect on milk production

COMPETITIVE LANDSCAPE

Rica continues to lead but faces challenge from brands capitalising on ongoing shift towards liquid milk
Gains and losses seen among new entrants battling to challenge Rica’s lead in liquid milk
Monte Leche makes a notable entry into shelf stable milk

CATEGORY DATA

Table 24 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 25 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 26 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 28 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 29 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 30 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 31 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Condensed milk dominates and sees highest growth due to being widely used for many purposes
Cream sales expand steadily benefiting from wide range of products and uses
Dairy desserts benefit from appeal of small packs as a portion-controlled indulgence

COMPETITIVE LANDSCAPE

Consumer trust and affordable prices keeps Nestlé at the top of other dairy
Pasteurizadora Rica dominates cream but competition is set to intensify
Private label slowly increases presence in other dairy via modern grocery retailers

CATEGORY DATA

Table 35 Sales of Other Dairy by Category: Volume 2014-2019
Table 36 Sales of Other Dairy by Category: Value 2014-2019
Table 37 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 38 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 39 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 40 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 41 Distribution of Other Dairy by Format: % Value 2014-2019
Table 42 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 43 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 44 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Healthy options and interesting flavours keep yoghurt sales buoyant
Drinking yoghurt attracts consumers via its convenience and wide variety of flavours
Wider distribution, offer of local flavours and yoghurt’s image as a nutritious snack will all boost sales

COMPETITIVE LANDSCAPE

Induveca extends lead with Yoka and portfolio of imported brands
Rica’s entry into yoghurt is expected to shake up competition
International brands may increase share following new launches and production investment

CATEGORY DATA

Table 46 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 47 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 48 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 50 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 51 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 52 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 53 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 54 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 55 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Dominican Republic - Industry Overview

EXECUTIVE SUMMARY

Healthy economy has a positive impact on packaged food
Private label continues to make gains in packaged food
No major changes seen in the competitive landscape
Traditional channel still going strong despite the expansion of the modern channel
Packaged food to continue growing over the forecast period

FOODSERVICE

Sales to Foodservice
Vibrant tourism contributes to strong foodservice sales
Local players serve as major suppliers
Solid economic growth fuels sales

CATEGORY DATA

Table 57 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 58 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 59 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 60 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 61 Sales of Packaged Food by Category: Volume 2014-2019
Table 62 Sales of Packaged Food by Category: Value 2014-2019
Table 63 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 64 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 65 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 66 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 67 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 68 Penetration of Private Label by Category: % Value 2014-2019
Table 69 Distribution of Packaged Food by Format: % Value 2014-2019
Table 70 Distribution of Packaged Food by Format and Category: % Value 2019
Table 71 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 72 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 73 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 74 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

DEFINITIONS

SOURCES

Summary 1 Research Sources