Dominican Republic: Rum Market 2024

Rum Market Size in the Dominican Republic

In 2022, the Dominican rum market increased by 109% to $X for the first time since 2019, thus ending a two-year declining trend. Over the period under review, consumption, however, continues to indicate a precipitous setback. Rum consumption peaked at $X in 2012; however, from 2013 to 2022, consumption remained at a lower figure.

Rum Production in the Dominican Republic

In value terms, rum production contracted to $X in 2022 estimated in export price. In general, production, however, saw a drastic downturn. The growth pace was the most rapid in 2017 with an increase of 27% against the previous year. Rum production peaked at $X in 2012; however, from 2013 to 2022, production failed to regain momentum.

Rum Exports

Exports from the Dominican Republic

In 2022, rum exports from the Dominican Republic skyrocketed to X litres, growing by 24% on the previous year. Overall, total exports indicated a modest increase from 2012 to 2022: its volume increased at an average annual rate of +1.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +70.7% against 2020 indices. The pace of growth appeared the most rapid in 2021 when exports increased by 37% against the previous year. The exports peaked in 2022 and are expected to retain growth in the immediate term.

In value terms, rum exports skyrocketed to $X in 2022. In general, total exports indicated a measured expansion from 2012 to 2022: its value increased at an average annual rate of +4.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +74.3% against 2020 indices. The pace of growth appeared the most rapid in 2021 with an increase of 42%. The exports peaked in 2022 and are likely to see steady growth in years to come.

Exports by Country

Spain (X litres) was the main destination for rum exports from the Dominican Republic, accounting for a 38% share of total exports. Moreover, rum exports to Spain exceeded the volume sent to the second major destination, the United States (X litres), twofold. Latvia (X litres) ranked third in terms of total exports with a 13% share.

From 2012 to 2022, the average annual growth rate of volume to Spain stood at +1.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+10.0% per year) and Latvia (+90.6% per year).

In value terms, Spain ($X) remains the key foreign market for rum exports from the Dominican Republic, comprising 43% of total exports. The second position in the ranking was taken by the United States ($X), with a 16% share of total exports. It was followed by Latvia, with an 8.5% share.

From 2012 to 2022, the average annual rate of growth in terms of value to Spain totaled +2.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United States (+9.9% per year) and Latvia (+96.1% per year).

Export Prices by Country

The average rum export price stood at $X per litre in 2022, remaining stable against the previous year. Over the last decade, it increased at an average annual rate of +2.7%. The pace of growth appeared the most rapid in 2013 an increase of 12%. Over the period under review, the average export prices hit record highs at $X per litre in 2021, and then contracted slightly in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Germany ($X per litre), while the average price for exports to Chile ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Haiti (+11.7%), while the prices for the other major destinations experienced more modest paces of growth.

Rum Imports

Imports into the Dominican Republic

In 2022, approx. X litres of rum were imported into the Dominican Republic; rising by 314% on 2021. Overall, imports enjoyed a significant increase. Imports peaked at X litres in 2016; however, from 2017 to 2022, imports failed to regain momentum.

In value terms, rum imports soared to $X in 2022. Over the period under review, imports continue to indicate a significant increase. The pace of growth appeared the most rapid in 2014 when imports increased by 297%. Over the period under review, imports reached the peak figure in 2022 and are likely to see gradual growth in years to come.

Imports by Country

In 2022, Venezuela (X litres) constituted the largest supplier of rum to the Dominican Republic, accounting for a 83% share of total imports. Moreover, rum imports from Venezuela exceeded the figures recorded by the second-largest supplier, Panama (X litres), more than tenfold. Colombia (X litres) ranked third in terms of total imports with a 3.1% share.

From 2012 to 2022, the average annual growth rate of volume from Venezuela stood at +436.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Panama (+34.7% per year) and Colombia (+224.2% per year).

In value terms, Venezuela ($X) constituted the largest supplier of rum to the Dominican Republic, comprising 65% of total imports. The second position in the ranking was taken by Panama ($X), with a 14% share of total imports. It was followed by Guatemala, with a 5% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Venezuela amounted to +362.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Panama (+38.3% per year) and Guatemala (+17.2% per year).

Import Prices by Country

In 2022, the average rum import price amounted to $X per litre, reducing by -22.7% against the previous year. Over the period under review, the import price showed a abrupt slump. The pace of growth appeared the most rapid in 2017 an increase of 110% against the previous year. Over the period under review, average import prices attained the peak figure at $X per litre in 2015; however, from 2016 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Guatemala ($X per litre), while the price for Colombia ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Guatemala (+6.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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