Pharma's untapped growth potential: The Latin American opportunity
Pharma faces increasing challenges in mature healthcare markets, including patent expiries and heightened regulatory & payer pressures. These factors are slowing growth in traditional regions and creating greater uncertainty — particularly in the US, where tariffs add complexity.
Against this backdrop, emerging markets offer a promising alternative growth path.
According to a 2024 report from IQVIA, the highest projected pharmaceutical market growth (2023–2028) is not in the traditional powerhouses — but in emerging regions:
- Latin America: 14.3%
- European non-EU countries: 11.8%
- Indian subcontinent: 9.4%
North America and EU follow behind with 8.2% and 6.3% respectively.
This positions Latin America as a promising region for pharma investors and drug development. Moreover, regulatory change might be on the horizon.
The Latin American and Caribbean Medicines Agency (AMLAC) is expected to help harmonize health regulations across the region. While not yet operational, initial steps have been taken. On April 26, 2023, in Acapulco, Mexico, the regulatory authorities of Colombia (INVIMA), Cuba (CECMED), and Mexico (COFEPRIS) signed the Declaration of Acapulco, initiating the creation of AMLAC.
Following up on our LinkedIn post about promising Brazilian biotechs, we wanted to zoom out and compare Brazil to one of the European key players: Germany. We performed a high-level forecast of pharmaceutical market sizes based on reported revenues by Statista for 2021-2024 and a CAGR of 3,5% (Germany) and 6,5% (Brazil). To ensure comparability, we adjusted Germany’s revenue figures — originally reported as retail prices — to reflect ex-factory prices reported for Brazil.
Based on these calculations, Brazil may very well surpass Germany in the next decade!
This projection highlights the growing importance of Latin America as a strategic region for the future of the pharma and biotech industries.
Let's connect,if you are exploring opportunities in emerging markets!