Overview

Although Costa Rica is a small country, with a population of just over 5 million people, it is known for providing high-quality and affordable healthcare for its citizens, spending approximately 5.33 percent of its annual GDP via the country’s public healthcare system – the CAJA Costarricense de Seguro Social (CCSS). With a health expenditure per capita of (current US$) $978.84, reported for 2022, the government has demonstrated a commitment to providing quality services to its population – particularly when compared to the expenditures of other Central American countries.

However, as is the case with most emerging economies, even with a strong public healthcare system, the country has a growing private sector system that accounts for 25.60 percent of the country’s total health expenditure. Costa Rica currently has 15 public hospitals administered by the CAJA Costarricense de Seguro Social and 4 private hospitals. Both the public and private healthcare sectors aim to build new infrastructure in the coming years.  

Leading Sub-sectors

Medical Devices

One crucial import/export sector in the Costa Rica-United States trade relationship is medical devices, accounting for $582.1 million in imports into the United States, while pharmaceuticals accounted for $129 million according to The Observatory of Economic Complexity.  

The medical device sector is a great opportunity for companies looking to export to Costa Rica, as there is a steadily growing demand for quality and reliable medical devices in the country. The level of demand for medical equipment in Costa Rica is expected to rise, as the public system, which represents 70 percent of the market, will continue replacing obsolete equipment in virtually all categories of products. Medical devices and equipment are also needed for R&D purposes, primarily with leading Costa Rican Universities and foreign pharmaceutical and medical device companies developing new products and performing clinical trials in the country.  

In addition, with the growing medical tourism sector, opportunities for medical device and supply companies are continuing to grow in the private healthcare sector. On average, 13.4 percent of tourists coming to Costa Rica annually, come for a medical treatment such as:  

• Orthopedics (hip, shoulder, and knee replacement).
• Surgery (bariatric surgery and gastric bandages placement).
• Dermatology (skin stein and wrinkle removal through laser application).
• Ophthalmology (cornea transplant, cataract surgery, refractive surgery).
• Plastic surgery (liposuction and face lifting).
• Dentistry (several procedures). 
• Fertility treatments.
• Substance addiction recovery (wellness tourism).

Medical tourism benefits companies operating in the health sector, such as medical device manufacturers, engineering firms, biomedical producers, pharmaceutical companies, ambulance services companies, insurance companies and more. Having such demand, both private and public Costa Rican hospitals and clinics will demand medical devices, supplies, discardable supplies, laboratory equipment, pharmaceuticals, specialized construction materials, health education, health IT solutions and other biomedical products to provide top-quality health services to patients. 

Hospital Infrastructure

According to Caja’s Infrastructure Investment Portfolio Plan for 2021-2030, the public institution foresees 348 major projects over the next 20 years, representing a more than $3 billion opportunity for U.S. firms. The private sector also foresees important projects, such as the construction of a new hospital called Hospital Clinica Biblica in San Jose, Costa Rica. For U.S. companies to participate in these projects, it is important to partner with a key distributor, or hospital developer who has already been awarded a project or will be bidding on future projects.  

Cosmetics 

Overview

In November 2021, Costa Rica’s Ministry of Health created new registration guidelines for cosmetic products, reducing the timeline from 25 to one day. This coupled with a rising middle class, a close relationship with the United States, and benefits under CAFTA-DR Free Trade Agreement, have helped open the market for U.S. cosmetic companies.  

According to Costa Rica’s Ministry of Foreign Trade, imports of cosmetic products have been steadily increasing in recent years. Consumer habits in Costa Rica are becoming more sophisticated due to greater awareness of the aging process, which has led to increased investment in premium products and services. This sector is expected to continue growing, driven by rising demand for personal care products among the Costa Rican population.

From 2021 to 2024, imports into the Costa Rican market grew consistently, increasing from US$201 million to US$297 million in 2024. Mexican companies continue to lead the cosmetics market in Costa Rica, followed by companies from Colombia and the United States. Guatemala and Colombia have also become key competitors within the Central American region, due to sustained development in the cosmetics sector and the existence of free trade agreements.

Furthermore, as demand for U.S. products continues to grow, imports from the United States increased from $32 million in 2021 to $48 million in 2024. This demonstrates that there are significant opportunities for U.S. companies in Costa Rica’s expanding cosmetics sector.

The distribution channels for professional products include approximately 4,000 beauty salons in the Greater Metropolitan Area (GMA). Around 200 of these salons sell high-end products while 3,000 are smaller spas that only sell mass consumption products. There are also approximately 1,000 professional spas of which 100 are premium spas, 200 are small spas, and 700 are independent aestheticians. Professional products can also be found in pharmacies (approximately 1,000 in Costa Rica). Dermatologists and plastic surgeons recommend products purchased in pharmacies. Mass consumption products are distributed in big box stores such as Walmart, PriceSmart, retail stores, discount stores, pharmacies and through catalogs.   

The prices of perfumes vary according to brand.  Premium perfumes such as Jean Paul Gautier and Gucci range from $100-$200.  Mass consumption perfumes and splashes, usually generic brands that are manufactured in China, range from $14-$20.  Professional shampoos cost between $40-$80, while mass consumption shampoos cost between $6-$10.  Mass consumption make-up products cost between $5-$30, while high-end and premium make-up products cost between $30-$100.   

Opportunities 

At the commercial level, cosmetics are classified in two categories: (1) Beauty products which are considered as luxury products where the demand is influenced by aspects such as age, social class, and financial income; and where purchase appears to be more personal; and (2) Personal hygiene products which are considered in most parts of Costa Rica as basic essentials. These products are purchased primarily by the family, and as individual family members grow and have financial means, they may select their own brands depending on their personal needs and preferences.

Because Costa Rica’s local production is not significant, most cosmetic products sold in the country are imported. Furthermore, wealth distribution means that only the top 20 percent of the population can afford premium products, whereas 80 percent of the population will only buy mass consumption products. Roughly 70 percent of cosmetic sales are made within the Central Valley, in the greater San Jose Metropolitan Area (GAM) with the remaining sales being made in rural areas, such as Guápiles (in Limon), Perez Zeledón (Southern Costa Rica) and Puntarenas. The local market has always been very receptive to purchasing from U.S. companies due to their excellent reputation, prestige, and quality guarantees. Imports from the United States demonstrate how American-made makeup products, perfumes, and soaps have great recognition in the Costa Rican cosmetic market.  

Actual consumption patterns demonstrate a tendency to acquire a diversity of products such as oils, keratin, and capillary and facial treatments. This is a market opportunity for high-end products. This line of products is very attractive to suppliers and distributors due to the large profit margins. Meanwhile in the mass consumption market, there are opportunities because of the active commercialization of these types of products in Costa Rican discount stores.  

Additionally, U.S. companies enjoy a market advantage in Central America, especially Costa Rica, because of the benefits under the CAFTA-DR free trade agreement. Under this agreement almost all cosmetic products’ import duties have been significantly reduced.

Even though Costa Rica has a high demand for cosmetic products, there are some disadvantages in terms of market accessibility. Costa Rica is a competitive market that is very price sensitive. Minimum quantities can be an issue due to competition from competitor countries’ products. In addition, product registration has been an obstacle for U.S. companies trying to access the Costa Rican cosmetics market. The main issue with product registration is the requirement by the Costa Rican Health Ministry to obtain a Certificate of Good Manufacturing Practices or License of Operation, which must be issued to the manufacturer by either the government or a trade association. The registration process can be done on the Regístrelo platform, but it requires a digital signature.  

Additionally, the process requires a power of attorney (in Spanish) to allow a third party to sign in the name of the foreign company, and to specify a person who will be responsible for sanitary registration when importing and selling the product in Costa Rica. Finally, a clarification letter is required, certifying that the respective company is the manufacturer of the product that will be exported to Costa Rica. In some cases, the Ministry of Health will accept the Manufacturing License of Operation that is issued by the respective state’s Municipal License emitting office, instead of the Good Manufacturer Practices document.  

In November 2021, the Ministry of Health announced a new Executive Decree 43291-S that reduces the registration procedure of processed foods and low-risk cosmetics from 25 days to one day. This decree was officially published on November 24th, 2021, in La Gaceta (Official Newspaper where are judicial edicts published), and was officially implemented on February 1, 2022.  

For more information or to discuss how CS Costa Rica can help you expand to Costa Rica, contact Commercial Assistant Isabel Salazar.