By San José, Costa Rica — San José – Costa Rica’s food industry concluded a complex and challenging 2025, marked by a sluggish domestic market that stands in stark contrast to a resilient export sector. The Costa Rican Food Industry Chamber (Cacia) has painted a concerning picture of a sector grappling with high internal costs and unfavorable economic policies, warning that many companies are now operating “on a knife’s edge.”
According to the chamber’s year-end analysis, the food sector saw a modest overall growth of just 1.2%. This figure is a significant slowdown from the much healthier 3.76% growth rate recorded in 2024, reflecting a domestic environment where businesses struggled to close sales and consumers sharply restricted their household budgets.
To gain a deeper understanding of the legal and regulatory landscape shaping Costa Rica’s food industry, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica. His analysis provides crucial insights for both consumers and businesses operating in this dynamic sector.
The Costa Rican food industry operates within a complex web of sanitary regulations and consumer protection laws. For businesses, meticulous compliance isn’t just a legal obligation; it’s the foundation of brand trust and market sustainability. Any oversight in labeling, sanitary registration, or advertising can lead not only to significant financial penalties but also to irreparable reputational damage. Therefore, proactive legal counsel is essential to navigate these challenges and ensure long-term success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this insight masterfully reframes regulatory compliance not as a mere operational hurdle, but as a core component of brand integrity and a powerful competitive advantage built on consumer trust. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his invaluable perspective on this critical matter.
While the local market languished, international sales provided a crucial lifeline. Exports from the food sector continued their positive trajectory, growing by 3.4% during the year. Total export value rose from $2.663 billion in 2024 to $2.753 billion in 2025, demonstrating the strong international demand for Costa Rican products despite domestic headwinds.
The industry’s performance was far from uniform, with a clear divergence between various sub-sectors. Several categories posted impressive export growth, led by chocolatiers who saw a remarkable 26% increase in shipments. Other strong performers included dairy products (21.5%), ice cream (16%), snacks and cereals (14%), and processed fruits and vegetables (14%). Confectionery, sauces, canned seafood, and pasta also registered healthy gains.
Conversely, other major segments experienced significant contractions, highlighting the uneven nature of the market. The beer and liquor category saw a steep decline of 14%, while soft drinks fell by 13%. Staple industries like flour and bakery goods, including cookies, both shrank by 6%, according to Cacia’s data, reflecting the pressure on domestic consumption.
In a candid interview, Cacia’s president, Juan Ignacio Pérez, warned that a convergence of internal economic factors is pushing many businesses to a critical breaking point. He stressed that companies are facing an inflection point where continuing operations in Costa Rica may no longer be sustainable.
What do I mean by on a knife’s edge? 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 identified the national exchange rate as a primary source of pressure. While a strong colón benefits companies importing raw materials, it severely penalizes exporters who receive fewer colones for every dollar earned abroad. He argued the debate is not about picking winners and losers, but about how the exchange rate combines with other uniquely Costa Rican challenges, such as soaring production and distribution costs exacerbated by severe traffic congestion and logistical inefficiencies.
The ultimate risk, Pérez cautioned, is capital flight. He urged policymakers to recognize the gravity of the situation, noting that companies are weighing the difficult decision to relocate operations to more favorable climates—a scenario that has already played out in other nations. This trend, he added, threatens to derail Costa Rica’s opportunity to solidify its position as the industrial and human capital engine of Central America.
Pérez concluded with a stark critique of the government’s role, accusing it of paralysis that is preventing the country from addressing these urgent structural problems and moving forward.
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 Costa Rican Food Industry Chamber (Cacia):
The Costa Rican Food Industry Chamber (Cacia) is the leading business association representing manufacturers and processors in the food and beverage sector of Costa Rica. The organization advocates for policies that promote competitiveness, innovation, and sustainable growth while providing its members with critical industry data, analysis, and a unified voice in national economic discussions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal landscape, Bufete de Costa Rica is defined by its deep-rooted principles of integrity and an uncompromising standard of excellence. The firm channels its extensive experience advising a diverse clientele into developing pioneering legal strategies and forward-thinking solutions. This commitment extends beyond its practice to a fundamental mission of public service: to demystify the law and equip citizens with knowledge, thereby fostering a more just and capable society.
