In relative terms—measured by the number of factories and per capita production—the Dominican Republic’s cosmetics industry stands out as the largest in Latin America and the Caribbean. This dynamic sector plays a significant role in the country’s economic activity, not only due to its direct contributions through sales and exports but also because of its ability to generate jobs and linkages across various industries such as packaging, logistics, retail, and advertising.
According to data from the Dominican Association of the Cosmetics, Personal and Home Care Industry (Afaper), the country is home to 347 formally registered cosmetics companies. This thriving sector comprises various businesses ranging from microenterprises to large-scale manufacturers. Of these, a remarkable 81.27% are microenterprises, showing the importance of small-scale entrepreneurship in fueling the growth of this industry. Additionally, 2.68% are categorized as small businesses, 2.31% are medium-sized, and 3.75% are large enterprises, underscoring a diverse ecosystem that includes local innovators and established market players.
A Resilient Sector with Growing Global Reach
Despite logistical difficulties, climate-related challenges, and global supply chain disruptions—especially concerning raw materials—the Dominican Republic cosmetics industry has shown strong resilience and continued to thrive in domestic and international markets. During their recent participation at the HOY Economic Forum, Afaper leaders, including former presidents Pedro Alorda and José Antonio Lomba, board secretary Zaira Mártir, and executive director Yndhira Hernández, underscored the industry’s ability to meet growing demand despite these external pressures.
This resilience is reflected in the sector’s export performance. In 2024, exports reached approximately US$144.64 million, representing a solid 12.64% growth compared to 2023. These figures demonstrate an upward trajectory, reinforcing the industry’s capacity to scale and compete in global markets.
The Dominican Republic ranks seventh in the region in terms of beauty product exports, holding a 2.1% share. While not the highest in absolute export volume, this ranking is particularly impressive considering the country’s size and population, further affirming its leadership in per capita production.
Key International Markets and Export Dynamics
The Dominican Republic’s cosmetics industry has an impressive international footprint. In 2024, 95.64% of exports were directed to just a handful of key markets. These include the United States, Colombia, Curaçao, the Netherlands, Japan, Panama, Cuba, Guatemala, Haiti, Puerto Rico, Costa Rica, and Caribbean territories such as Bonaire, St. Eustatius, and Saba.
The United States remains the top destination, consistently accounting for nearly 49% of total exports over the past five years. This sustained demand from the U.S. underscores the industry’s ability to produce high-quality, competitively priced products that resonate with international consumers.
Moreover, Dominican cosmetic products are now present in over 70 countries, reflecting the industry’s increasing global appeal and capacity to meet diverse markets’ regulatory standards and consumer preferences.
Economic Impact and Job Creation
The Dominican Republic cosmetics industry’s positive economic impact extends beyond export revenue. In 2024, the sector directly employed 7,053 individuals, reflecting a 0.99% increase over the previous year. Women play a significant role in this workforce, holding around 48% of direct jobs, highlighting the industry’s contribution to female employment and empowerment.
In addition to direct employment, the industry generates approximately 185,000 indirect jobs across related areas, such as beauty salons, independent product sales, and brand promotion. These indirect roles help sustain a broad network of small business owners and service providers, many of whom operate in underserved or rural communities.
Moreover, the average monthly salary within the sector increased to RD$39,508.20, a 7.46% rise compared to 2023. This salary growth reflects the sector’s economic stability and commitment to improving its workforce’s livelihood.
Sales Growth and Market Expansion
According to Euromonitor data, the Dominican Republic cosmetics industry closed in 2024 with total sales of US$1.569 billion, equivalent to approximately RD$93.355 billion. This figure marks a 2.28% increase compared to 2023’s total of US$1.528 billion. Despite global economic headwinds, the industry continues to expand, driven by both local consumption and international demand.
This consistent growth is attributed to a combination of factors: the adaptability of local companies, increasing consumer awareness, improved branding and packaging, and the rise of natural and organic product lines that appeal to global markets.
The Role of Packaging and Graphic Design in Product Success
One key factor in the success of the Dominican Republic’s cosmetics industry is the synergy it has developed with other local industries—particularly packaging and graphic design. Afaper executives noted that advancements in these complementary sectors have significantly enhanced the quality and presentation of locally manufactured cosmetics.
Dominican plastics manufacturers have improved the functionality and sustainability of packaging materials, while the country’s graphic design sector has evolved to produce modern, appealing, and competitive labels and branding. This has allowed domestic producers to increase consumer acceptance and better compete on international shelves, where aesthetics and first impressions are often decisive factors in purchasing behavior.
Supporting Microenterprises and Innovation
Since microenterprises comprise more than 80% of the industry, fostering innovation and providing technical support for small business owners remains crucial. Many of these microenterprises operate at a community level, often producing artisanal and specialty products using natural ingredients sourced from the Dominican Republic’s diverse ecosystems.
Efforts to formalize and support these enterprises—through access to credit, training, and quality control mechanisms—are essential to ensuring that the industry continues to grow inclusively. Moreover, several small and medium-sized enterprises (SMEs) are beginning to invest in research and development, aiming to differentiate their offerings through product innovation, sustainable practices, and tailored marketing strategies.
Future Outlook and Continued Growth
Looking ahead, the Dominican Republic cosmetics industry is well-positioned for continued expansion. The combination of a skilled workforce, favorable trade relationships, improving infrastructure, and growing demand for health and beauty products—both locally and abroad—points to a positive future.
Industry leaders believe targeted investments in technology, e-commerce, and logistics will help overcome current raw materials and transportation challenges. Expanding trade agreements and partnerships, particularly with neighboring Caribbean and Central American countries, will likely open new growth opportunities.
As the country continues to strengthen its manufacturing base and diversify its export portfolio, the Dominican Republic’s cosmetics industry is a shining example of how small and medium-sized enterprises can fuel sustainable economic development, job creation, and international competitiveness in the modern economy.