Increasing demand, new competitors of all kinds and the manufacture of uncertified products are some of the changes that this business is bringing to the pandemic scenario in Costa Rica.
According to CentralAmericaData reports, in Costa Rica since January 5, 2020 the interactions on the Internet associated with cleaning products show a clear upturn.
Companies in the disposable plastic manufacturing sector have the capacity to replace all their production with environmentally friendly options, but the main obstacle is the limited capacity that customers must pay the surcharge for bioplastics.
In Costa Rica, some 31 companies indicated that they have the capacity to replace all their production with user-friendly options, the main limitations being the low capacity of customers to pay the surcharge for bioplastics and the restrictions on the functionality of the alternatives.
Because there are customers who demand gluten-free food, vegan food or dishes that adapt to the ketogenic diet, companies in Costa Rica can exploit new market niches.
The number of consumers who demand specialized food is rising in the Costa Rican market, so some restaurants have changed their menus to meet the demands of customers.
Last year, bottled water sales in Costa Rica were estimated at $89 million and they are expected to increase up to $106 million in 2023, a behavior explained by the downward trend in the consumption of carbonated beverages.
Although companies such as Florida Ice & Farm Co (Fifco) and Coca Cola Femsa have the opportunity to grow in the Costa Rican market, they will also face competition from new entrants such as Premium Brands.
The growing preference for freshly prepared foods meeting the demands of health-conscious consumers explains the niche market that is developing in Costa Rica.
Some of the companies which have found a niche market in the preparation of gourmet food specialized in the country, have emerged in response to the lack of time for people to cook and the need that several consumers have to meet the goals they define together with nutrition professionals.
For Costa Rican businessmen, the neighboring country is a very important market, since it is dedicated to logistics, trade and financial intermediation, and demands different types of goods produced by Costa Rica.
In 2018 Costa Rican exports to the Panamanian market totaled $606 million, which positioned Panama as the fourth most important destination for foreign sales, surpassed only by the United States, Holland and Belgium.
Explained by better promotional efforts, the proportion of Costa Rican SMEs that export to Asian, South American and Caribbean countries continues to grow.
According to the Foreign Trade Promotion Office (Procomer), last year 86% of companies that sold goods in South America were SMEs, in the case of Asia the proportion reached 81% and for the Caribbean it was 80%.
In four years Costa Rica has doubled its exports of frozen fruit, going from sales of $36 million in 2011 to $71 million in 2015.
An article on Elfinancierocr.com reports that the reason for this growth , "... could be a reduction in the supply of these products by Asian businesses, according to the CEO of the company Frutera La Paz, Luisa Chacon."
The propensity for a healthier consumption has created opportunities for drinks that prevent diseases.
From an article by the Costa Rican Foreign Trade Promotion Office:
According to the consulting firm Innova Market Insights, within the main trends for 2014 in the market for juices and beverages, is reducing waste in production processes and a greater focus on consumer confidence.
Unlike European and South American consumers, Asians show a greater willingness to pay more for organic products.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
The Spaniards are not willing to pay more for organic products, as is clear from the last Socialogue Report prepared by IPSOS in 24 countries worldwide. Although more than half of the Spanish population (51%) are appreciative of businesses who undertake initiatives to respect the environment, only 27 % were willing to pay more for these products.
Previously unthinkable export deals are now possible thanks to the soaring consumption levels of the Chinese.
An article by Amafredo Castellanos in Revistamyt.com reviews the success of Guatemala's Acuamaya, one of the largest shrimp companies in the region, which has already begun to export shrimp to China.
"... Selling seafood to China, or coffee, may sound like a joke.
The fall in consumption in Europe is forcing companies in the old continent to internationalize and find businesses in markets that have been hitherto unappreciated.
There is no longer such a thing as small markets, either in terms of size or purchasing power. And neither is the size of a company a limiting factor for, through the globalization of logistics, products to be sold worldwide, or to buy them from any country.
The Inter-American Development Bank has launched a new version of the Intrade website with information on tariffs and trade agreements for companies and countries seeking new markets for their exports.
A statement from the Inter-American Development Bank (IDB) reads:
IDB launches new version of Intrade, the most complete business information system in the region.
The Chilean market, current recipient of some Costa Rican products, could be better utilized by exporters.
Chile is already one of Costa Rica’s trading partners, selling the country juices, fruit concentrates, food preparations and cassava (yuka).
This list of products could be expanded if exporters take advantage of the opportunity and increase the diversification of exportable products, which according to a study by the Costa Rica Promoter of International Trade of (Procomer), is a possibility.
The global market adds 50 million consumers each year. Is your company ready to take advantages of theses new opportunities?
If Herb Meyer’s prediction of 50 million new consumers per year is accurate, as was his conjecture that the Soviet Union would fall, it may be crucial to get ready to what he labels “the greatest change the world has ever seen”.