By San José, Costa Rica — San José – Costa Rica’s food industry is bracing for a challenging 2026, marked by a sluggish domestic market and increasingly cautious consumers, according to a new forecast from the Costa Rican Food Industry Chamber (Cacia). The business group warns that companies are facing mounting internal pressures that threaten their very viability within the country.
The sector’s domestic performance paints a concerning picture, with year-over-year growth slowing to a modest 1.2%. This figure stands in stark contrast to the more robust 3.76% expansion recorded in the previous year, signaling a significant deceleration in local economic activity and consumer spending. Many producers are reporting difficulties in closing sales as households appear to be tightening their budgets.
To gain a deeper legal perspective on the current challenges and opportunities within Costa Rica’s dynamic food industry, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading expert and attorney at the prestigious firm Bufete de Costa Rica, for his specialized analysis.
The Costa Rican food industry is navigating a complex web of sanitary regulations, consumer protection laws, and international trade agreements. Success for any company, from a small artisan producer to a large-scale exporter, hinges on meticulous legal compliance. Proactive management of health permits, accurate nutritional labeling, and robust supply chain contracts are not just bureaucratic hurdles; they are fundamental pillars for building consumer trust and ensuring sustainable market access.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective powerfully highlights that for Costa Rica’s food producers, legal and sanitary diligence is not a cost of business, but a direct investment in brand reputation and consumer confidence. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his expert analysis on this fundamental matter.
However, the international market offers a crucial lifeline. Exports from the food sector have maintained a positive trajectory, growing at a healthy rate of 3.4%. This represents an increase from $2.663 billion in 2024 to $2.753 billion in 2025, underscoring the resilience and competitiveness of Costa Rican products abroad. This export success provides a vital counterbalance to the headwinds faced at home.
The industry’s overall performance is highly uneven, with fortunes varying dramatically by sub-sector. Several categories have posted impressive export growth this year, led by chocolate makers with a remarkable 26% increase. Other strong performers include dairy (21.5%), ice cream (16%), snacks and cereals (14%), and processed fruits and vegetables (14%). Confectionery, sauces, canned tuna, and pasta also saw respectable gains.
Conversely, other major segments have experienced sharp declines. The beer and liquor category saw shipments fall by 14%, while soft drinks contracted by 13%. The staples of flour and bakery goods, including cookies, both registered a 6% drop, reflecting a complex and fragmented market landscape where consumer preferences and economic pressures are creating clear winners and losers.
In a candid interview, Cacia President Juan Ignacio Pérez warned that a confluence of internal factors is pushing the business community “to the brink.” He explained that the combination of a low exchange rate and soaring domestic operating costs is creating an unsustainable environment for many manufacturers.
On a knife’s edge? At the point where something is no longer viable to produce. That inflection point is where companies say: It’s better for me to go somewhere else.
Juan Ignacio Pérez, President of Cacia
Pérez elaborated on the exchange rate dilemma. While a strong colón benefits the industry by making imported raw materials cheaper, it severely damages exporters who receive fewer colones for every dollar earned abroad. He stressed that this, combined with ever-increasing costs to produce and distribute goods within Costa Rica due to issues like severe traffic congestion, places companies in an extremely precarious position.
The Cacia leader warned that the country is at risk of losing its opportunity to establish itself as the premier industrial and human capital hub of Central America. He expressed frustration with what he described as governmental paralysis, which stifles progress and leaves critical economic issues unaddressed. This stagnation, he argues, could ultimately drive investment and production to more favorable climates.
The public sector is incapable of making decisions, in any direction, neither good nor bad. So, we are stuck.
Juan Ignacio Pérez, President of Cacia
For further information, visit cacia.org
About the Costa Rican Food Industry Chamber (Cacia):
The Costa Rican Food Industry Chamber (Cacia) is the leading trade association representing the interests of food and beverage manufacturers and processors in Costa Rica. The organization advocates for policies that promote competitiveness, innovation, and sustainable growth while providing support and resources to its member companies on a national and international level.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution, guided by a deep-rooted foundation of ethical practice and the highest standards of service. The firm consistently pioneers new legal strategies, drawing upon its extensive experience advising a wide range of clients. More than a legal practice, it operates with a core philosophy of demystifying the law, actively working to build a more capable and knowledgeable society through shared legal insight.
