Costa Rica Heated Tobacco Products Market Overview, 2030

The heated tobacco products market in Costa Rica is in its early growth phase, shaped by increasing awareness of harm reduction alternatives and the gradual entry of multinational tobacco companies. While the traditional cigarette segment still dominates nicotine consumption, especially among older adults and low-income populations, urban consumer segments are beginning to show interest in alternatives like HTPs, driven by lifestyle shifts, social stigma surrounding smoking, and greater health consciousness. Philip Morris International (PMI) has been leading the introduction of IQOS in Costa Rica, with small-scale rollouts concentrated in San José and other major urban centers since 2022. Awareness remains limited outside the capital, but growing exposure through international travel and social circles is expanding recognition of the product. The local market is also influenced by Costa Rica’s robust tourism economy and medical sector, which draws educated consumers with exposure to international wellness and tobacco alternatives. Heated tobacco is positioned as a premium product, often seen as a more socially acceptable and technologically advanced smoking option. Distribution remains limited, with availability mostly in specialty shops or through online ordering facilitated by local partners. As of 2025, Costa Rica lacks the large-scale infrastructure seen in more mature markets, but the market potential lies in the country’s rising middle class, tech-savvy youth population, and the government’s moderate approach to regulation. IQOS penetration is increasing incrementally, especially among smokers seeking to reduce exposure without giving up tobacco entirely. Consumer behavior suggests openness to new formats that blend innovation with familiarity.

According to the research report, ""Costa Rican Heated Tobacco Products Market Overview, 2030,"" published by Bonafide Research, the Costa Rican Heated Tobacco Products market is anticipated to add to more than USD 1.26 Billion by 2025–30. Costa Rica’s regulatory environment for heated tobacco products is evolving, reflecting both the country’s commitment to public health and its cautious openness to innovation. Currently, HTPs fall under the broader regulatory scope of tobacco products as defined by Costa Rica’s General Law on Tobacco Control and its Effects on Health Ley N° 9028. This law mandates health warnings, advertising restrictions, and age-verification requirements for any nicotine-containing product, including HTPs. However, unlike e-cigarettes, which have faced tighter scrutiny in recent years, heated tobacco has not been explicitly banned or restricted, allowing companies like PMI to operate in a legal gray area while building regulatory pathways. IQOS is the only available HTP brand in Costa Rica, distributed via direct partnerships and a limited retail footprint. No official “reduced-risk” designation exists under Costa Rican law, which limits marketing to informational and device-focused messaging without health claims. While there is currently no specific excise tax structure for HTPs, authorities are evaluating the classification of tobacco sticks under existing cigarette tax categories. This creates pricing uncertainty that could affect long-term scalability. Importantly, Costa Rica is influenced by regional regulatory trends and often aligns with frameworks from WHO recommendations and larger Latin American countries like Mexico or Colombia. Competitive activity is minimal, with no presence yet from BAT’s Glo or JTI’s Ploom, making the landscape unipolar and relatively uncontested. Enforcement of packaging laws is in effect, though IQOS packaging remains differentiated by stick variant names like “Amber” or “Turquoise,” in compliance with Costa Rican plain packaging norms. Regulatory clarity over the next 1–2 years will be key to encouraging broader participation, both from manufacturers and retailers. Should Health Authorities adopt a defined policy framework for HTPs, the market could shift from experimental to structured, opening opportunities for category expansion and local industry engagement.

The Costa Rican heated tobacco products market operates within a tightly controlled, single-brand closed-system model centered on PMI’s IQOS devices and their associated tobacco sticks. Tobacco sticks, sold under brand names like HEETS or TEREA, are the only consumable format currently available, featuring reconstituted leaf tobacco compressed into stick form for exclusive use with IQOS heating devices. These sticks are imported from PMI’s international manufacturing hubs and distributed via authorized partners in Costa Rica, primarily in San José and affluent urban districts. Leaf tobacco is not sold independently and plays no direct role in consumer purchasing behavior, though it is the base raw material for stick production. There is no local cultivation or processing industry for HTP-grade tobacco in Costa Rica, and all product supply chains are managed through PMI’s global operations. Capsules and cartridges, commonly seen in hybrid or open-system HTPs in Asian or European markets, are not approved for use in Costa Rica. All devices must operate as sealed systems with pre-filled, tamper-resistant sticks to meet regulatory compliance and reduce potential misuse. IQOS 3 Duo is currently the dominant device model, supported by growing interest in the newly launched ILUMA series, which uses induction heating and requires Smart core sticks. Devices are sold through direct-to-consumer retail, pop-ups, and partner stores, priced between CRC 55,000–75,000 approx. USD 100–140, and come with warranty and onboarding support. No competing heat-not-burn systems, such as BAT’s Glo or JTI’s Ploom, have yet entered the Costa Rican market, leaving IQOS as the sole participant in both device and consumable segments. Future diversification will depend entirely on regulatory acceptance and competitive entry.

In Costa Rica, the distribution of heated tobacco products is heavily reliant on offline retail, with online platforms operating under tight controls due to regulatory ambiguity and tobacco legislation. The primary channel for IQOS device and tobacco stick sales is through authorized specialty stores, premium electronics outlets, and select tobacco retailers located in urban centers such as San José, Escazú, and Heredia. These physical points of sale play a critical role in consumer onboarding, especially given the novel nature of the product and the need for personalized education on device handling, usage cycles, and stick compatibility. In-store brand ambassadors assist first-time users with product trials, registration, and warranty activation, helping build confidence and loyalty among adult smokers transitioning from combustible cigarettes. Offline channels also serve as the only legal route for immediate purchase, since Costa Rica’s regulatory framework currently lacks specific e-commerce guidelines for heated tobacco products. Online sales are minimal and mostly limited to device accessories or informational browsing. While PMI has a local website offering product information, purchasing of consumables is restricted, and most reorders are conducted offline. This limitation significantly affects consumer convenience in rural and semi-urban regions, where physical access is lower. There is rising demand for a more integrated omnichannel approach, but regulatory clarity is needed before e-commerce can scale. Until then, the offline channel will remain dominant for both acquisition and repeat sales. Brand visibility at point of sale, access to trained staff, and consistent product availability are key factors supporting consumer retention. As awareness of HTPs grows, expanding authorized retail presence beyond major cities will be essential to drive national adoption and improve market accessibility. Show more