Medical Equipment
Overview
Brazil is the largest medical equipment market in South America. The total market for medical equipment in Brazil should continue to expand through 2009. Brazil is both a major medical equipment producer and importer. This industry is comprised of a number of related products and services, including:
- Medical equipment and devices
- Dental equipment and products
- Radiological and diagnostic imaging equipment
- Laboratory equipment
Brazilian medical equipment revenues in 2007 reached an estimated US$ 4.1 billion, which represents an increase of 30% from the previous year. The United States accounts for approximately 40% of the import market, with U.S. sales mainly going through local agents, distributors and importers who sell to hospitals and clinics. The market for electro medicine equipment is around US$ 200 million, which represents 50% of total sales in Latin America.
There are few high-quality Brazilian manufacturers of advanced medical products so Brazil’s reliance on imports should continue for some time. Local buyers view US and other foreign products (mainly Canadian and European) as having comparable quality and reliability. Thus, financing terms often become the differentiating criteria in making a sale.
Best Products/Services
With continued expansion of Brazil’s private health care sector, the market should grow. New opportunities for US exporters abound, particularly for:
- Advanced medical equipment
- Disposables
- Diagnostic devices
- Implants and components
Opportunities
An interesting trend in Brazil is the growing market for home health care products, which has increased dramatically in recent years. Brazil has an estimated 150 home health care companies compared to approximately 1,440 in the US. In Brazil, these companies are increasingly viewed as ways to cut hospitalization costs while offering better services for patients. Brazilian health insurance companies are responsible for paying 99% of the costs related to home care treatment, and as such, the U.S. Commercial Service sees the market for home health care products growing dramatically during the coming years.
In addition to the attractive size of the Brazilian medical market, US exporters should consider the opportunities offered by Mercosul, and use Brazil as a "spring board" for exports into Argentina, Uruguay and Paraguay.
Pharmaceuticals
Overview
The Brazilian pharmaceutical industry is comprised of 270 companies and is the largest market in Latin America. This represents a total market value of US$ 17 billion in 2008, with an estimated 20% growth. Brazil is also among the five largest pharmaceutical markets in the world in terms of unit sales. U.S. exports account for approximately 20% of Brazilian pharmaceutical imports.
About 80% of pharmaceutical companies operating in Brazil are national, but they are only responsible for a minority of domestic sales. Foreign firms mostly from the United States and Europe, along with their Brazilian subsidiaries, supply 70% of the market, not including direct sales to the Government.
Generic Pharmaceutical Products
Generic drugs first entered the Brazilian market in 1999. Since then, the sector has grown rapidly and is estimated to have accounted for 14.2% of sales in 2007. Nearly all generic production is purchased by state public health care systems as part of the government’s program to distribute medicine to the poor. It is estimated that in 2008, the generic market will reach US$ 1 billion in sales represented 20% of total sales.
Best Products/Services
Best prospects are for products related to modern life style, such as contraceptive, erectile dysfunction, cholesterol, weight control, diabetes and other medicines for chronic diseases treatment.
Opportunities
Brazil’s Pharmaceutical market represents an excellent opportunity for US firms for a variety of reasons. The size of the pharmaceutical market is significant, and this market will likely grow as the Government lowers taxes on these products. Tax decreases will not only increase per client sales for current patients, but will bring into the fold those currently forgoing medication because of financial constraints.
Opportunities for U.S. firms to export raw materials to Brazil are abundant. Approximately 85% of the raw materials used in the production of generic drugs in Brazil are imported. In addition, we see major demand for equipment and services associated with the construction of pharmaceutical manufacturing plants, representing another opportunity for US exporters.
For Additional Market Research on the Healthcare Sector in Brazil:
Medical Device Regulatory Requirements for Brazil
Pharmaceutical Market in Brazil