Milk powder market in Costa Rica

Earlier Report Observations

Between 2018 and 2020, the milk powder market in Costa Rica experienced significant shifts. Improved agricultural practices and the adoption of more efficient technologies enhanced the competitiveness of the dairy sector, supporting production growth and enabling a surge in exports to 10.9 thousand tons in 2019. This export focus temporarily reduced domestic market volume to 11.2 thousand tons that year. The high tariff barrier of 66% on most dairy products protected national production from imports. In 2020, the COVID-19 pandemic disrupted supply chains and consumption patterns, leading to a drop in exports. This, combined with continued protective tariffs, allowed the domestic market volume to recover to 13.3 thousand tons.

From 2021 onward, the market entered a phase of sustained expansion, reaching 18.8 thousand tons by 2023. A strong emphasis on sustainability and reducing dependence on imported inputs, under initiatives like NAMA Ganadería, fostered product differentiation through sustainability seals and strengthened local production resilience. Simultaneously, shifting consumer preferences towards products distinguished by sustainability and nutritional quality, along with policies promoting responsible consumption, boosted domestic demand. Changes in sales distribution, with hypermarkets accounting for 58% of sales, improved market access. These factors encouraged a redirection of production from export to the domestic market, evident in falling export volumes, which drove the market size upward.

Production milk powder in Costa Rica

In kind, 2017-2020, t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Milk powder production in Costa Rica increased for the second consecutive year. In 2020, Costa Rica produced 22 069 tonnes of milk powder, marking a 1.6% year-on-year rise. Over the period from 2017 to 2020, production grew by 3.8%, with a compound annual growth rate of 1.3%. The lowest production level was recorded in 2018 at 21 248 tonnes. The largest decline occurred in 2018, with a 0.1% decrease, while the largest increase was in 2019, with a 2.3% rise.

Annual dynamics of production in Costa Rica in kind, 2017-2020, t

In value, 2017-2020, M $ US

In 2020, the output of milk powder in Costa Rica was valued at 111.1 million US dollars, representing a 17.3% increase compared to the previous year. From 2017 to 2020, production value rose by 12.7%, with a compound annual growth rate of 4.1%. The lowest value was recorded in 2019 at 94.8 million US dollars. The largest decline occurred in 2019, with a 6.0% drop.

Annual dynamics of production in Costa Rica in value, 2017-2020, M $ US

Exports milk powder from Costa Rica

Exports in kind, t

After a two-year rise, milk powder shipments from Costa Rica to abroad declined. In 2020, exports totaled 9 159 tonnes, showing a significant reduction of 16.2% compared to the previous year. Over the period from 2017 to 2020, exports increased by 27.7%, with a compound annual growth rate of 8.5%. The highest export volume was recorded in 2019 at 10 924 tonnes. The largest increase occurred in 2019, with a 51.6% rise.

Annual dynamics of product's exports from Costa Rica in kind, 2017-2020, t

From 2017 to 2020, Guatemala, the Dominican Republic, and El Salvador accounted for the largest share of Costa Rica's milk powder exports in kind. Guatemala represented 39.0% of exports, the Dominican Republic 17.3%, and El Salvador 12.5%. Together, these three countries comprised 68.7% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Costa Rica in kind, 2017-2020

Exports in value, K $ US

After a two-year gain, Costa Rica's milk powder export volume declined. In 2020, Costa Rica exported 46 118 thousand US dollars worth of milk powder, representing a 3.2% decline compared to the previous year. Over the period from 2017 to 2020, exports increased by 38.7%, with a compound annual growth rate of 11.5%. The highest value was recorded in 2019 at 47 636 thousand US dollars. The largest increase occurred in 2019, with a 39.4% rise.

Annual dynamics of product's exports from Costa Rica in value, 2017-2020, K $ US

From 2017 to 2020, Guatemala, El Salvador, and the Dominican Republic continued to lead as the top buyers of milk powder from Costa Rica in value terms. Guatemala accounted for 40.9% of exports, El Salvador for 15.3%, and the Dominican Republic for 13.3%. Collectively, these three countries represented 69.5% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Costa Rica in value, 2017-2020

Imports milk powder to Costa Rica

Imports in kind, t

There were noticeable fluctuations in market performance during the period. Imports varied significantly, with a 3-fold difference between the low in 2017 and the high in 2018. In 2020, foreign milk powder supplies to Costa Rica amounted to 415 tonnes, showing a gradual advance of 7.1% relative to the prior year. The highest import volume was recorded in 2018 at 599 tonnes. The largest decline occurred in 2019, with a 35.4% drop, while the largest increase was in 2018, with a 195.0% rise.

Annual dynamics of product's imports to Costa Rica in kind, 2017-2020, t

Throughout 2017 to 2020, the United States and Nicaragua concentrated 87.3% of total milk powder imports in kind to Costa Rica. The remaining share was distributed among other destinations, each with smaller individual contributions.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Costa Rica in kind, 2017-2020

Imports in value, K $ US

The market showed signs of volatility over the observed period. Import levels fluctuated, with a 2.2-fold difference between the low in 2017 and the high in 2018. In 2020, Costa Rica imported approximately 1 186 thousand US dollars worth of milk powder, amounting to a gradual decrease of 5.1% compared to 2019. The highest value was recorded in 2018 at 1 635 thousand US dollars. The largest decline occurred in 2019, with a 23.5% drop, while the largest increase was in 2018, with a 122.6% rise.

Annual dynamics of product's imports to Costa Rica in value, 2017-2020, K $ US

Throughout 2017 to 2020, two countries—the United States and Nicaragua—concentrated most of the imports in value terms of milk powder to Costa Rica. Other markets were less important individually.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Costa Rica in value, 2017-2020