Costa Rica’s garment industrys

Costa Rica’s garment industrys

Costa Rica’s garment industry has experienced significant transformations over the past few decades, evolving from a robust export-driven sector to a more specialized and sustainability-focused industry.

Historical Context and Decline

In the early 2000s, Costa Rica’s textile sector was a major contributor to the national economy, with 152 companies employing approximately 30,000 workers. However, by 2009, the number of textile companies had dwindled to 82, employing just 8,000 individuals. This decline was marked by the closure of significant manufacturing plants, including a Cartago-based facility producing Levi’s and Dockers, which ceased operations in January 2011. Consequently, textile export revenues plummeted from $729 million in 2000 to $234 million in 2009.

Current Landscape and Economic Impact

Despite the downturn, the apparel market in Costa Rica remains substantial. In 2025, the market is projected to generate approximately US$1.05 billion in revenue, with women’s apparel accounting for nearly half at US$485.30 million. The industry is expected to grow at an annual rate of 3.22% between 2025 and 2029.

While large-scale manufacturing has declined, numerous small and medium-sized enterprises continue to operate. Companies such as Dada Textil S.A., Kon Wah Textiles Industriales S.A., and SOCOFAM are notable players in the current market.

Shift Towards Sustainability and Artisanal Production

Costa Rica is increasingly recognized for its commitment to sustainable fashion. The country’s abundant biodiversity and eco-conscious policies have fostered a culture of environmental responsibility within the fashion industry. Events like the Costa Rica Fashion Summit highlight the nation’s dedication to eco-friendly practices, featuring plastic-free and carbon-neutral initiatives.

Artisanal craftsmanship plays a significant role in this sustainable shift. Indigenous communities, such as the Boruca, contribute through traditional textile weaving and mask-making, preserving cultural heritage while supporting the local economy.

Export Markets and Global Presence

Costa Rica exports textiles to over 41 countries, with the United States, Spain, and China being the primary importers. The U.S. alone accounts for 61% of these exports, underscoring the country’s continued relevance in the global textile market.

Conclusion

Costa Rica’s garment industry has transitioned from a large-scale manufacturing hub to a sector characterized by sustainability and artisanal production. While it no longer dominates the export market as it once did, the industry’s evolution reflects the country’s broader commitment to environmental stewardship and cultural preservation.