A GEM HIDDEN IN THE MOUNTAINS
Often overlooked in favor of the titans of South America, the Peruvian consumer health and pharma market is very much the hidden gem of the continent. Offering consistent and predictable returns, a fair business environment, as well as growing demand for all things OTC and pharma, Peru has a lot to offer!
- The Peruvian self-medication and pharma market has been growing in leaps and bounds in recent decades.
- So much so that the market is projected to grow to US$ 4.1 billion by 2030; growing at a rate of 8,1%.
- Much of this can be attributed to the economic climate of the South American country. The last 30 years have seen stable and consistent economic growth, supported by political stability.
The regulatory arm of the government concerned with OTC and pharma products and distribution is known as DIGEMID (Dirección General de Medicamentos, Insumos y Drogas) and often works in conjunction with the National Pharmaceutical Laboratories Association of Peru (ALAFARPE in Spanish). Unlike in most countries’ OTC and consumer health markets, the legal framework of the Peruvian market ensures that it does not favor local players, with the Ministry of Health often buying medication directly from foreign companies.
Additionally, the Peruvian constitution does not permit price controls, and this essentially creates a ‘free market’ for drugs. This does not mean that just any consumer health or Rx product can enter the market, however. The implementation of Law 29459 in 2009 ushered in an environment which ensures the quality of the medication. New laws are also encouraging clinical research in Peru, as the country hopes to become a hub for OTC and pharma innovation and development.
Photo by Agnieszka Mordaunt on Unsplash
As such, ALAFARPE has developed good working relations with other regulatory bodies in the region, adopting innovations from other countries in the region like Chile; with its remarkable competency at producing medication for complex diseases.
The rise in the digitization of healthcare in Peru is another factor which adds luster to this hidden gem. Before the COVID-19 pandemic, only around 20% of physicians used a teleconsulting platform. However, now it is likely that the figure now stands closer to 90%. These are but a few examples of the exciting dynamism which characterize the Peruvian OTC and pharma market.
Thus the stable political climate, favorable economic policies, and pursuit of technological advancement make the Peruvian consumer healthcare and pharma market a true gem hidden in the Andes.
Internationalization is an important asset to any pharma and OTC business, at CPC we gather more than 20 years of healthcare expertise and we can help expand your business in many countries, including Peru.
Photo by Willian Justen de Vasconcellos on Unsplash
