The Enchanting Charm of the Brazilian OTC and Pharma Market
Colossal, enchanting, and blossoming. Why the Brazilian Self Medication and pharma market is developing into a truly enticing opportunity, you would regret to miss.
A true titan of the pharmaceutical market, the allure of Brazil is one that most major OTC and pharma companies would find difficult to resist. With the 7th largest population of over 210 million, a burgeoning healthcare industry, and an emerging economy characterized by stable, consistent growth, it is not difficult to understand why.
Total consumption purchases totaled more than USD 45 Billion in recent years, and have continued to grow in value. The federal state employs a decentralized, universal health system. The system works through a cooperation between the federal, state, and municipal governments. Care is delivered by the municipal and state governments, while the federal provides the funding through tax. All residents and visitors are able to receive free healthcare. As such, the government in Brazil necessarily plays a major role in the healthcare industry.
This however, does not discourage the private sector’s involvement. Consumer Health and Pharma retail reportedly grew around 15.4% the last year, proving that this colossal market still has some way to grow before it is considered fully mature. In 2018, roughly 23% of Brazilians had private medical or hospital insurance, mostly as a work benefit. That percentage has been rising and is projected to continue to do so. It is also worth noting that Brazil’s private health insurance market remains second only to the United States, with around 50 million people covered. Private insurance and healthcare are rapidly growing in concert with the Brazilian middle-class, such that private healthcare spending is expected to eclipse government spending by 2050.
Additionally, the Brazilian government has a dynamic and ever simplifying tender system which is increasingly inviting for foreign players interested in participating in this growing market.
There is ample room for partnership opportunities in Brazil, as the country has a budding pharmaceutical manufacturing industry with major local and international titans who hold considerable weight in the market. The three largest players in terms of value are: Grupo NC; Sanofi; and Eurofarma. These three firms cover the majority of market segments including prescription, hospital, OTC, food supplements and generics.
This dynamic market continues to evolve and diversify, providing golden opportunities to enter the market you would be remiss not to take.
Featured image at the top: Photo by Gabriel Rissi on Unsplash
