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The
fast-growing markets for pharmaceutical products in
Latin America are worth over US$30 billion at retail
prices; but what opportunities do they present for
manufacturers now and in the future?
Breakdown
of the Latin American Market by Country
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
The
biggest Latin American markets (Mexico, Brazil, Argentina,
Peru, Chile, Venezuela and Colombia) represent a market
of 427 million people with a GDP of US$1.8 trillion
in 2005. After China they are the fastest growing
markets, expected to grow at an annual rate of 10%
between 2005 and 2010 and reaching a market value
of over US$45 billion at retail prices by 2010.
Latin America shows considerable and untapped business
potential for the pharmaceutical industry: the economic
recovery of Argentina and Brazil and the strong manufacturing
base developing in Mexico are all making Latin America
much more appealing as a place in which to conduct
development and production.
Multinational
pharmaceutical companies that had left the area are
returning and expanding their sales and marketing
capacity. Local companies are expanding, merging,
or changing their business models. And governments
are trying to enact policies that encourage growth
in investment, protect the business of local manufacturers,
and supply needed medications to a relatively low-income
populace.
Latin
America presents a volatile market, but the draw of
pharmaceutical sales over $30 billion is undeniable,
and relative political and economic stability suggest
that figure could grow to almost $40 billion by the
end of 2007. As a result, the Latin American market
is changing and as it is as diverse as it is vast
and effectively consists of sub regions each with
distinctive and different characteristics it’s
vital to understand the market and the development
of the Pharma industry within such complex business
environment.
Market
Share and Sales Growth of Top Ten Pharma Companies
in Latin America
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
Total
Market Growth Rate, 2000-2005 (US $)
Source:
IMS HEALTH Pharma Prognosis Latin America, 2001-2005
The
market is showing strong scope for growth. The United
Nations projects the overall population of the region
will increase by about 23% over the next 20 years,
from 504 million to 623 million.
And according
to Simon Friend, Global Pharmaceutical Leader, PricewaterhouseCoopers:
“The pharmaceutical industry' s main markets
are under serious pressure and experiencing sluggish
growth so there is a real need to diversify. China
may be the popular target for other industries but
in some parts of Latin America per capita expenditure
on pharmaceuticals is more than double that of China.
Any company that wants to be global will ultimately
need to have a presence in Latin America.”
If you think you want to know more then you
should download immediately our FREE, comprehensive
and independent report
on the Pharma Industry in the Latin American Market
and sign up for the Pharma
Latin America 2007 - Sales and Marketing Congress |
