Craft Beer in Costa Rica - 2025 Market Report
KEY DATA FINDINGS
Total volume sales rise by 5% in 2024 to 206 million litres
Non/low alcohol beer is the best performing category in 2024, with total volume sales rising by 7% to 21 million litres
Florida Bebidas SA is the leading player in 2024, with a total volume share of 82%
Total volume sales are set to grow at a CAGR of 4% over the forecast period to 253 million litres
2025 DEVELOPMENTS
Beer feels the strain of higher unit prices
According to official data, beer in Costa Rica recorded a CPI increase in excess of 16% in 2024, which was a sharp increase within the drinks industry. Coupled with the persistent inflationary pressures affecting the economy, consumers were forced to reduce consumption or trade down in 2024. As the year came to a close, however, prices came down for many products (negative CPI growth of 1.77%) and beer experienced a positive performance overall in 2024.
Craft beer continues to gain popularity
Many foreign entrants entered the craft beer scene in Costa Rica with over 20 brands looking to secure footprint on shelves. Despite ongoing marketing and promotional efforts, few have gained traction with many local brands being more competitive on both price, flavor, an cold chain cost mechanics. Notwithstanding, locals and tourists alike are flocking to craft beer for its unique flavor profiles and prolific partnerships with larger scale distribution based brands.
Novel ambar cbd beer finally comes to market
2024 saw the long-awaited introduction of Cerveza Ambar CBD, which contains 10mg of CBD. The launch took some time due to the lengthy authorisation process, but it appears to have been worth the wait as consumer interest in CBD products is burgeoning in Costa Rica. In addition to CBD, the beer has a 5% alcohol content and is also gluten free. Similar products are expected to be launched in the near to medium term as producers and distributors seek to exploit the opportunities offered by this flourishing trend.
Fiscal changes implemented in 2024
The 10% sales tax that had been applied to imported beers was removed in 2023, therefore domestically produced beer no longer enjoys a fiscal advantage. The fiscal change also seeks to reduce the amount of contraband in this sector and encourage more competition. Whilst this could benefit the final consumer as imported offerings will now be more accessible, smaller beer producers, particularly within the craft/artisanal segment and smaller microbreweries, could be impacted given the very high production costs that prevail in the country, including high labour and energy costs.
PROSPECTS AND OPPORTUNITIES
Steady volume growth expected, with rising interest in low calorie and light beer
Beer remains a popular beverage in Costa Rica, with locals often opting for a beer over other alcoholic drinks. New product developments in the near to medium term and new beer varieties entering the market will support further steady growth, as will prices normalising over the course of the forecast period.
Interest in light and lower calorie beers is expected to continue to grow in the country as rising health and wellness concerns will see consumers increasingly monitoring the alcoholic and calorie content of their drinks. Light beer has been performing well in the market, and further growth will be driven by new product launches in the near to medium term (both locally manufactured and imported products). Low-carb and/or gluten-free beer will also benefit from rising consumer demand for healthier products. More premium offerings with organic, local ingredients, meanwhile, will appeal to more affluent, informed consumers.
Watch out for more offerings from smaller players and local craft beers
Although the craft/artisanal sector is not as big as it was prior to the pandemic, players still operating in this area continue to produce high-quality offerings, often with locally sourced ingredients and flavours that appeal to local consumers. Tap rooms for promoting less mainstream beer brands, and subscription services for members to sign up to for monthly shipments are increasingly popular. More smaller producers are increasingly engaging in vertical integration and focusing on the on-premise channel to reach consumers, such as the Eremita Cervecería Ermitaña brewery and the Papagayo Brewing Company. Papagayo has operations in Nicaragua and the US and has five points of direct sale in Costa Rica where it offers four types of beer.
Non-alcoholic beer expected to remain niche
Unlike light beer, which has a burgeoning consumer base in Costa Rica, non-alcoholic beer continues to struggle. Although a variety of brands are available on the market, the category remains niche, with few consumers opting for alcohol-free offerings, and it is not expected to record dynamic growth over the forecast period.
In 2024, FIFCO added Heineken 0.0 to its portfolio (in 330ml cans and bottles), which contains 21 calories per 100ml, as well as vitamins, minerals and natural antioxidants, to appeal to those influenced by the health and wellness trend and adult non-drinkers. However, as Heineken 0.0 is a more premium offering, it remains out of reach for many consumers in the country.
CATEGORY BACKGROUND
Lager price band methodology
Leading brands in the premium segment include Libertas Ale, Leffe, and Hoegaarden premium lager. Premium brands are often found in supermarkets like Automercado, warehouse clubs like Price Smart, or on-trade locations that cater to higher income consumers.
Leading brands in the mid-priced segment include Imperial, Toña, and Miller Genuine Draft. Mid-priced beers have a good reputation and are the ones most often offered in restaurants.
Leading brands in the economy segment include Bohemia, imported brand Cezka, and Keler. Consumers can often find mid- or premium beer brands at similar prices to economy brands, when they are the product of contraband. Beer price promotion is also very common in modern retailers.