In a recent report prepared by research and consulting firm GlobalData, the Brazilian pharmaceutical market is expected to reach approximately $47.9 billion by 2020. This figure represents a strong Compound Annual Growth Rate (CAGR) of 8.5 percent since 2014, when the industry was valued at $29.4 billion.
GlobalData’s report attributes the predicted growth to the country’s aging population, which will increase the incidence of chronic illnesses, as well as lifestyle-associated diseases. The report also notes Brazil’s continual investment in healthcare, as a market growth driver during the next five years.
The country’s economic policies and reforms are also being implicated as factors in the prosperity of the Brazilian pharmaceutical industry. Brazil has experienced global success as a manufacturing center for pharmaceutical and biotechnology companies.
José Serra, the country’s previous health minister, was a key player in encouraging foreign investment from generic companies. In particular, India has invested heavily in Brazil’s pharmaceutical manufacturing industry.
If Brazil’s past economic growth in the pharmaceutical sector is any indication, the predictions made by GlobalData may not be far off. The value of the Brazilian pharmaceutical market has more than doubled since it was worth $14.1 billion in 2008.
These figures have prompted industry insiders to label the Brazilian market as one of the most promising pharmaceutical industries in the world. Specifically, the country’s generics market is experiencing unprecedented growth, and most of the generics produced in Brazil are obtained by the country’s public healthcare system.
In 2014, the government announced they would be investing $34 billion into the Brazilian healthcare system, which has contributed to the success of other government programs such as the People’s Pharmacy program (Farmácia Popular). According to statistics provided by the US Department of Commerce, around 80 percent of pharmaceutical companies in Brazil are domestic, and this number is only going up.
While the vast majority of these companies are domestic, the Multination Companies (MNC) – such as Pfizer, Novartis and Roche – produce higher revenues compared to their domestic counterparts. The dominant domestic companies in Brazil are currently Hypermarcas and EMS Sigma Pharma.
- Brazil’s Pharmaceutical Market Value Will Approach $48B by 2020 – http://www.dddmag.com/news/2015/08/brazils-pharmaceutical-market-value-will-approach-48b-2020