This report assesses the business environment in the Dominican Republic, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

The report examines the economic landscape of Dominican Republic and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by exports, private consumption and government spending. However, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

The chocolate confectionery market in the Dominican Republic is expected to sustain its positive growth trajectory in current value terms throughout 2025. This continued momentum will be supported by a robust local manufacturing base, strong consumer preference for high-quality chocolate, and price increases driven by ongoing inflationary pressures. Although the country is a major global cocoa producer, its domestic chocolate products remain exposed to the effects of rising international cocoa p

The gum market in the Dominican Republic is expected to sustain positive growth in current value terms throughout 2025. As social interactions increase, more consumers are opting to chew gum to freshen their breath and relieve anxiety. In addition, its low unit price makes it an attractive option for those seeking convenient, on-the-go indulgence, while its lower sugar content positions it as a healthier alternative compared to other confectionery products.

The sugar confectionery market in the Dominican Republic is projected to continue growing in both volume and current value terms in 2025, extending the positive trend seen in the previous year. This growth is largely driven by the category’s lower unit prices compared to other types of snacks. With rising prices and household incomes under pressure, many Dominicans are turning to more affordable treats to satisfy their sweet cravings.

The market for sweet biscuits, snack bars, and fruit snacks in the Dominican Republic is projected to grow steadily in both volume and current value throughout 2025. This will be propelled by a shift towards indulgence and strategic marketing efforts by multinational companies like Frito-Lay Dominicana (PepsiCo). Within this category, sweet biscuits holds the largest market value, driven by continuous innovation in product formulations - introducing new flavours and enhanced sensory experiences

Despite the rising cost of raw materials and imports, the savoury snacks market in the Dominican Republic continues to expand, driven by an increase in on-the-go consumption occasions and the growing significance of local brands and private labels which cater to every household budget. Price remains the most important purchase driver, as consumers prioritise value for money, rather than premium, high-end options. In response, companies are increasingly offering multi-packs and bonus-sized produc

The market for snacks in the Dominican Republic is expected to achieve solid growth in current value terms in 2025, partly driven by price increases as companies respond to persistent inflationary pressures. A key tactic used to manage rising production costs has been shrinkflation, with many brands reducing package sizes across multiple categories. Nevertheless, the expansion of private label offerings has helped cushion the impact on consumers, providing more affordable alternatives and enabli

Ice cream sales are projected to maintain healthy growth in current value terms in 2025, supported by increasing consumption and rising prices. This growth is taking place within the context of a strong national economy, which continues to support a thriving tourism sector - an important contributor to the country’s GDP - which in turn, increases demand for ice cream. At the same time, rising disposable incomes among local consumers are fuelling more discretionary spending, with ice cream increa

Wine registered very healthy volume growth in the Dominican Republic and in fact was the best performing alcoholic drink in 2024. In a country more associated with rum and beer, wine has seen significant volume growth over the review period. The pandemic in particular stirred a growing interest in wine, since many people tried wine during lockdowns. In addition, retailers such as modern grocery retailers and specialist retailers have also been a key driver in this growth, expanding their offerin

Cider/perry was the worst performing alcoholic drink in the Dominican Republic in 2024. Volume sales fell significantly and this was from an already low base. The seasonality of cider/perry is one reason for its continued muted sales, with sales concentrated around Christmas and New Year. Its failure to develop beyond this continued to dampen sales.

Beer continued to be the most popular alcoholic drink in the Dominican Republic by far and registered healthy volume growth in 2024. Its affordability compared to other alcoholic drinks supported volume sales. A particularly warm summer also contributed to volume growth, as beer is seen as a refreshing drink. Mid-priced beer continued to account for most volume sales, though imported premium beer registered the highest volume growth.

It was a mixed picture for alcoholic drinks in the Dominican Republic in 2024. While wine and beer performed well, volume sales for spirits, RTDs and cider/perry all fell. In terms of beer, its affordability supported volume sales, as consumers continued to be price sensitive, after several years of price hikes. In addition, consumers find beer refreshing during the hot summer months. This price sensitivity was one reason for the decline in spirits, as it more expensive than other alcoholic drin

Volume sales of spirits fell in the Dominican Republic in 2024, Spirits are more expensive that other alcoholic drinks and after several years of rising prices, consumers continued to be price sensitivity. This contributed to the fall in volume sales. In addition, the maturity of spirits also dampened volume sales. Dark rum, followed by white rum, continued to account for most volume sales and together both accounted for more than half of volume sales. However, volume sales fell for both dark an

There was a decline of volume sales in RTDs in 2024. Although RTDs have seen growth in recent years, mainly from younger consumers of under 30-years-of-age, competition with beer in the last year, whose price per litre is much lower, negatively impacted sales. Spirit-based RTDs continued to dominate. The combination of flavourful mixes and budget-friendly pricing makes them a preferred choice. However, wine-based RTDs, while having lower penetration compared to spirit-based RTDs, performed bette

There was a significant fall in volume sales of cigarettes in the Dominican Republic in 2024. This was both to a continuing reduction in smoking prevalence, as well as a continuing rise in illicit trade. In terms of reduced smoking prevalence, smoking restrictions, higher taxes, and public health campaigns all contributed to the decline. That being said, smoking rates were still high. In terms of illicit trade, this has consistently grown over the review period, with supplies mainly coming in f

Cigarettes continued to be the most popular tobacco product in the Dominican Republic in 2024, in terms of volume sales. However, it registered a significant fall in sales in 2024, largely due to a continuing reduction in smoking prevalence. That being said, the rising illicit trade also contributed to the decline in licit volume sales.

The Dominican Republic is a world leader in premium cigar production, standing out for its focus on high-value-added products that are appreciated in markets such as Europe and the United States. This standing has been supported by the adoption of new technologies in both the cultivation and manufacturing processes, which has allowed for greater efficiency and diversification in production. The government's role has also been fundamental in strengthening this industry, through institutions such

Both e-vapour products and heated tobacco registered both healthy value and volume growth in the Dominican Republic in 2024. Many are switching to these new alternatives, as they are perceived as less harmful. A lack of restrictions also drove growth. However, there is growing concern about the increasing adoption of e-vapour products in particular among younger consumers of under 30-years of age. This situation is exacerbated by the lack of clear and specific regulations, which has led to a hig

The number of households is set to increase moderately, while the average household size will remain unchanged in Dominican Republic over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 87.8% by 2029.

This report covers the retail sector in Central America and the Caribbean. Euromonitor International’s definition of the region includes the following countries:

Sales of hair care saw a positive performance in both value and volume terms in the Dominican Republic in 2024. For local consumers, and especially in the female demographic, hair care tends to be a priority. Indeed, local consumers believe that self-care begins with paying special attention to hair care. Seeking to show clean, shiny, silky hair, with no split ends or dandruff, are patterns sought by the majority of Dominican women, regardless of the socioeconomic segment to which they belong.

Men’s grooming sustained positive sales in the Dominican Republic in 2024, in both value and volume terms, albeit with volume notably lower than value. The current generation of Dominican men is more actively involved in the purchasing decisions of beauty and personal care products for their use than seen in previous generations, with the latter more inclined to use products purchased for them by their partners, or those for general family use However, male grooming rituals are adopted more regu