By Jay Forte, Contributing Reporter
RIO DE JANEIRO, BRAZIL – According to a report by GlobalData, the Brazilian pharmaceutical market is set to grow from US$25.3 billion in 2016 to US$29.9 billion in 2021, representing a compound annual growth rate of 3.5 percent. This is welcome news in the midst of Brazil’s worst economic recession on record.
GlobalData latest report states that Brazil is one of the most attractive and promising pharmaceutical markets in the world, with all major global pharmaceutical companies operating in the country.
Changing demographics are a key driver of the Brazilian pharmaceutical space, as a growing population of elderly citizens is likely to increase the incidence of chronic and lifestyle diseases.
When combined with the availability of universal healthcare and advancements in pharmaceutical and medical technology, this is likely to drive demand for healthcare services.
According to the industry research group, Brazil’s population grew from 191 million in 2009 to 202 million in 2016, mainly due to the increase in the life expectancy. The value of the pharmaceuticals market increased from US$15.4 billion in 2009 to US$25.3 billion in 2016 at a Compound Annual Growth Rate (CAGR) of 3.4 percent.
Brazil’s overall health expenditure is also expected to grow through 2018, supported by increased investments in the country’s universal and free public healthcare system, in line with the government’s initiatives to improve access to health services and pharmaceuticals among underserved parts of the population.
The report also states that local pharmaceutical companies are also seeing improved market opportunities. Traditionally, Brazil’s pharmaceuticals space has remained largely reliant on imports, with its biotechnology sector highly dependent on imported raw materials and active ingredients for generic drugs.
However the country’s economic crisis and new governments budget cuts may effect the bullish predictions set by GlobalData.
Yet in March it was reported that the overall industrial production in Brazil started 2017 with a monthly increase compared to the same days of the previous year, after 34 consecutive months of decline.
During the period the IBGE considers that there were significant increases in the overall rate of pharmaceuticals and pharmaceutical products, with a 21.6 percent expansion.