Pharma Market Reports

The popular term ‘BRIC Markets’, established in 2001 by the Goldman Sachs Head of Global Economic Research Jim O’Neill, refers to a group of countries whose economies are at a similar stage of newly advanced economic development and have huge growth potential. (BRIC stands for Brazil, Russia, India and China.) However, the BRIC term does not apply to the Pharma and Consumer Health industry due to the differences between the financial stability to which the term BRIC refers and the growth potential in Pharma and OTC Markets. Many companies learned this the hard way. That’s why the Berlin Healthcare experts from Chameleon Pharma Consulting coined another (much more attractive) term: TRIUMPH.

Figure: TRIUMPH-Markets are the most appealing markets to in

Figure: TRIUMPH-Markets are the most appealing markets to in

TRIUMPH Markets’ is the name given to Pharma Emerging Markets with good market access and very high growth and development potential over the next few years. The Pharma and OTC Markets from these TRIUMPH (Turkey, Russia, Indonesia, Ukraine, Mexico, Philippines) countries are currently in developmental stages, and their estimated growth rate between now and 2020 makes them an ideal target for foreign investors.

The factors we used to designate the TRIUMPH Countries were:

  • Present and expected growth potential
  • Local Healthcare system in a developmental stage
  • Relatively uncomplicated market access
  • Brand and patent legal aspects
  • Regulation of product registration

While Western European Pharma and Consumer Health Markets have barely grown in the last years—some of them have even diminished—those in countries such as Russia, Mexico and Ukraine grew at rates that ranged from 10-18%; that’s several billions of dollars in each of those countries—just in Healthcare.

Let’s take a quick glance at the TRIUMPH Markets:

  • Turkey is the sixth-largest market in Europe and the largest pharmaceutical market in the Middle East. Due to rising population figures, higher life expectancies and an ever-increasing income per capita, it is realistic to expect further growth in the pharmaceutical market (an expectation supported by the culture’s growing concerns about personal health and willingness to invest more money in healthcare products). What’s more, the Turkish government’s current plans to mitigate legal procedures in relation to advertising and the sale of OTC products will ease market access significantly, while the plan to liberalise Pharma and Consumer Health retail trade would permit Pharma and OTC products to be sold in supermarkets. Read more…
  • Russia is the eighth-largest Pharma and Consumer Health Market in the world, and its growth rate is the third highest. Because of the demand for innovative and high-quality Healthcare products, the Russian Pharma and Consumer Health market is expected to double in size by the end of the decade as a result of the country’s ‘Pharma 2020’ program: the country has invested millions of euros in Healthcare reform and several billions on importing medicines. Its high population is also an important factor, as it means more healthcare product consumers.It is also important to highlight the fact that recently many of the bureaucratic obstacles that discouraged Western European companies from expanding there have been reduced or eliminated. Read more…
  • With 237 million inhabitants, Indonesia is the fourth-most populous country in the world, and its Pharma and Consumer Health market has a total annual growth of 13%, with a high demand for quality healthcare products. From 2008 to 2013, the approximately US $12 billion the country spent on healthcare services increased to almost US $27 billion. Plus, the currently low consumption of Pharma and OTC products and the culture’s growing readiness to invest in healthcare products are enough evidence to suggest excellent growth potential. Furthermore, the market’s low stage in development represents a great opportunity for foreign investors. Read more…
  • Ukraine has one of the fastest-growing Pharma and Consumer Health markets in Europe, and high-priced products from the West are not only in demand, but they also exhibit good growth. Experts hope that the introduction of a specific VAT (currently there’s none) will provide a financial basis for a strong healthcare system. Read more…
  • In the last ten years, Mexico has doubled its economic growth, and things keep increasing; the country is currently ranked as the second-most leading market economy in Central America. The improvement of living standards and the increase from its population’s life expectancy has intensified the demand for Pharma and Consumer Health products. Because of this and the reform on regulations, the Pharma and Consumer Health market has increased by more than 8% per year. Read more…
  • The Philippines has one of the most attractive Pharma and OTC markets in the Asia-Pacific region. Nevertheless, the healthcare system is so obsolete that the market can’t meet the healthcare product quota demanded by its big population. No local company produces Pharma and OTC Products, so the potential for foreign investments is huge. Moreover, market access is still a simple and not cost-intensive option. Read more…
Figure: TRIUMPH Markets’ development between 2010 and 2014

Figure: TRIUMPH Markets’ development between 2010 and 2014

And what about those markets that have potential but aren’t included in the TRIUMPH group? The term ‘aspirant countries’ refers to those countries with Pharma Emerging Markets whose potential hasn’t yet reached the TRIUMPH category. Examples of aspirant countries include Romania, Vietnam, Kazakhstan, Brazil and Colombia.

The differences between TRIUMPH Markets and TRIUMPH aspirant markets, as well as the criteria for both categories, can be better understood using this graph:

Figure: TRIUMPH and aspirant markets

Figure: TRIUMPH and aspirant markets

The expansion of the TRIUMPH Markets is a reality, and it won’t wait for anybody. Over the next decade, these markets will become much more competitive, so it is recommendable to develop an expansion strategy now.