J. Mendoza
Research expert covering health, pharma and medtech
Pharmaceutical industry in Latin America - Statistics & Facts
Latin America is one of the fastest-growing pharmaceutical markets in the world. With an increasing and aging population of 660 million people, it is forecast to grow at a compound annual growth rate (CAGR) of seven to ten percent between 2023 and 2027. This is twice the expected CAGR for North America. Within the industry, Brazil stands out among Latin American countries, ranking among the top ten pharmaceutical markets worldwide while displaying figures comparable to those of Canada and Spain.
When it comes to pharmaceutical companies in the region, global leaders such as Bayer, Sanofi, and Pfizer are found alongside local corporations such as the Brazilian multinationals Eurofarma and Hypera Pharma, headquartered in São Paulo, and the Mexican company Genomma Lab, headquartered in Mexico City. Regarding pharmaceutical retailers, the leading drugstore company in Latin America is the Brazilian firm RaiaDrogasil, with a national presence and multiple pharmacies throughout the country known as Raia and Drogasil. Other major retailers are Farmacias Guadalajara and Farmacias Benavides, both with a strong presence in Mexico.
What are the industry’s key segments and players?
The segments presenting the highest revenue within the sector are vaccines and oncology drugs. The vaccine market drastically expanded during the COVID-19 pandemic and is forecast to stabilize in the coming years, while revenue generated by oncology drugs is forecast to increase continuously. Among over-the-counter (OTC) pharmaceuticals, analgesics and cold and cough remedies account for the highest proportion of total revenues. However, in the case of online consumers, the main category is for incontinence medications.When it comes to pharmaceutical companies in the region, global leaders such as Bayer, Sanofi, and Pfizer are found alongside local corporations such as the Brazilian multinationals Eurofarma and Hypera Pharma, headquartered in São Paulo, and the Mexican company Genomma Lab, headquartered in Mexico City. Regarding pharmaceutical retailers, the leading drugstore company in Latin America is the Brazilian firm RaiaDrogasil, with a national presence and multiple pharmacies throughout the country known as Raia and Drogasil. Other major retailers are Farmacias Guadalajara and Farmacias Benavides, both with a strong presence in Mexico.
Purchasing channels and average prices
Local pharmacy stores remain the most popular purchasing channel among consumers of medications in major Latin American economies, with nine out of ten buyers acquiring medicines in person. The share of people purchasing products in local retail stores, online pharmacies, and online stores is more varied between countries. Among online consumers, vitamin and mineral supplements are particularly popular. What also varies greatly are the average prices of medications. While in Colombia medicines aimed at chronic diseases have an average price of 43.1 U.S. dollars, in Ecuador and Peru this value circles around five U.S. dollars.
