This is the first of a three-part series analyzing the Rx market’s prospects through 2035.
Get The Important Insights!
With an expected global valuation of 1,8 trillion US$ in 2035, the Rx market is likely to continue to grow considerably over the next few years. Continue reading to discover the trends that will guide the growth of the Rx market, and to see if your company strategy is suitable for the evolution of this industry.
The General Evolution of the Rx Market
The prescription market was worth 1 trillion USD in 2020, and even with the COVID-19 pandemic, it is expected to recover very quickly and reach a total value of 1,8 trillion USD in 2035, experiencing an average growth rate of 4% globally.
The pandemic has amplified different trends regarding the use of prescription products that vary from region to region.
Here is an overview of the LATAM region and its future development, so that you can hold all the cards to best prepare your international strategy.
Infographic: Global Rx Market Growth
LATAM Region
Globalization as a Factor of New Disease Development and Need for Prescriptions
Globalization has encouraged the consumption of products like fast food. Latin America has been no exception, with the rapid spread of fast-food consumption leading to the rise of diabetes patients in the region. For reference, as of 2021, almost 16% of adults in Mexico are living with diabetes.
The spread of diabetes comes not only with an increase in healthcare expenditure, but also the need for more drugs and therapies, explaining the steady growth projections for prescription markets in Latin America.
Increase in Generic Drug Sales
In Latin America, inflation will definitely play a part in the future development of the prescription market. Rising inflation goes hand in hand with a reduction of out-of-pocket spending, as people with less spending power tend to reduce their consumption of goods overall, medicine included. As a result, the consumption of generic drugs will most likely rise, as they are less influential on healthcare expenditures overall.
Mexico Prescription Market Insights
Mexico has the 2nd largest market for contract manufacturing in the region. This has offered a wide range of opportunities, and growing sales of generic drugs. Overall, the Mexican Rx market is expected to continue growing at a forecasted rate of 7,5% in the next few years and should reach an ex-factory valuation of US$ 27,3 billion by 2035. These high growth rates are mainly attributable to an aging population, a growing middle class, a stable business environment, as well as improved access to health care services that increase the patient’s demand for OTC and Rx products.
How Chameleon Pharma Consulting Group can support you to expand your business internationally:
We offer systematic country analysis and selection in Latin America, as well as partner identification services to assist you to identify the best-fitting country and segment for your current portfolio and expansion goals. Our services can support you to expand your business internationally and be best prepared for the future of the prescription market. If you want to learn more about expanding your business in Latin America, contact us today!
Click here to read the next article in the series on the Rx Market Outlook 2035:
2/3 The future of prescription markets in the world in 2035: Asia
3/3 The future of prescription markets in the world in 2035: Europe
Photo by Haley Lawrence on Unsplash
Photo by Gonzalo Kenny on Unsplash
Photo by Volodymyr Hryshchenko on Unsplash
