Market Introduction
South America (SAM) region consists of Brazil, Argentina, and Rest of South America. The countries are likely to offer growth opportunities due to growing domestic’s production of pharmaceutical and biopharmaceutical production, increasing support from governments, and rising research and developments. Brazil’s 70% of pharmaceutical business is dependent on imports of pharmaceutical products. For instance, in 2019, medicines worth US$ 7 billion were imported, among which biological medicines were worth US$ 2 billion, i.e., 30% of the total import. However, the COVID-19 pandemic has offered vital growth opportunities for the domestic production of medicines to Brazil and various countries across the world. Associations in Brazil such as the Brazilian Association of Generic Medicines Industries (PróGenlicos) and FarmaBrasil Group (GFB) state that the country can produce nearly 75% of the total demand for medicines in the country. Therefore, it is expected to increase the demand for pharmaceutical intermediates in the country. Also, in 2019, the country has imported a significant number of biological products or immunotherapeutic drugs worth US$ 1 billion. Therefore, it is expected that investing a huge amount in importing pharmaceutical products. The country can invest in the domestic production of medicines and will only incur in importing pharmaceutical intermediates. In addition, the companies operating in the country that are associated with FarmaBrasil Group have commitments, through the Partnerships for Productive Development (PDPs), to produce medicines domestically, including bevacizumab, palivizumab, infliximab, betainterferone 1A, and insulin, among others. Thus, it is expected that such strategic moves for domestic production will enhance the demand for pharmaceutical intermediate and eventually lead to market growth in the following years. Rise in prevalence of chronic diseases and infectious diseases is the major factor driving the growth of the SAM pharmaceutical intermediates market.
The South America region includes countries such as Brazil and Argentina. These countries have also registered a significant number of positive coronavirus infection cases. In the South American region, the virus continues to spread aggressively in Brazil, Peru, and Chile. Many South American countries have faced shortages of resources to manufacture and supply medical products. Some of the hard-hit countries such as Brazil, where case number surpassed 13,521,409, and Argentina, the case recorded as 2,551,999 as of April 2021. It is expected that the region is likely to impose a second lockdown, which will eventually hamper the healthcare industry in the area. COVID-19 continues to have a tremendous impact on the region. Although Peru established one of the strictest lockdowns in the South America region, it suffered the highest mortality rate due to COVID-19. The coronavirus pandemic has become an enormous challenge to this region, as they are low-cost regions. The Brazilian pharmaceutical industry is facing challenges of trying to contain the COVID-19 pandemic while dealing with enormous cost pressures. In Brazil, the rise in the dollar has made importing APIs more expensive and also there is increase in logistics costs, due to the reduction in air traffic, with the consequent upsurge in freight costs. Additionally, there is also significant increase in the prices of raw materials, inputs and finished products. These factors are likely to have negative impact on the market.
Market Overview and Dynamics
The pharmaceutical intermediates market in SAM is expected to grow from US$ 997.56 million in 2021 to US$ 1,197.02 million by 2028; it is estimated to grow at a CAGR of 2.6% from 2021 to 2028. Countries such as Argentina and Chile are emerging as attractive outsourcing locations for pharmaceuticals and biopharmaceuticals industries. Low manufacturing and operating costs in these countries are key factors driving the pharmaceutical manufacturing business in the region. Recent growth in the pharmaceutical industry indicate a positive outlook for the pharmaceutical intermediates market. Flourishing domestic pharmaceutical market in the region and increasing number of pipeline drugs are further opening new avenues for the contract manufacturers as well as generic drug manufacturing in the region. Additionally, to meet the growing demand, many contract-based organizations are expanding their manufacturing capabilities, further boosting the growth of the market. Thus, the emerging markets hold high potential and huge revenue generation opportunities for the pharmaceutical manufacturing companies across SAM region.
Key Market Segments
The SAM pharmaceutical intermediates market is segmented on the bases of type, application, distribution channel, and country. Based on type, the market is segmented into GMP and Non GMP. The GMP segment dominated the market in 2020 is expected to be the fastest growing during the forecast period. On the basis of application, the pharmaceutical intermediates market is segmented into antibiotics, antipyretic analgesics, vitamins, and others. The others segment dominated the market in 2020 and vitamins segment is expected to be the fastest growing during the forecast period. On the basis of distribution channel, the pharmaceutical intermediates market is segmented into distributor and direct sales. The direct sales segment dominated the market in 2020 and distributor segment is expected to be the fastest growing during the forecast period.
Major Sources and Companies Listed
A few major primary and secondary sources referred to for preparing this report on the pharmaceutical intermediates market in SAM are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are BASF SE; chiracon GmbH; Codexis; Dishman Carbogen Amcis Ltd; Midas Pharma GmbH; Pfizer Inc.; and Sanofi are among others.
Reasons to buy report
SAM Pharmaceutical Intermediates Market Segmentation
SAM Pharmaceutical Intermediates Market -By Type
SAM Pharmaceutical Intermediates Market -By Application
SAM Pharmaceutical Intermediates Market -By Distribution Channel
SAM Pharmaceutical Intermediates Market -By Country
SAM Pharmaceutical Intermediates Market -Company Profiles