The Brazilian pharmaceutical market will expand in value from $29.4 billion in 2014 to reach approximately $47.9 billion by 2020, representing a strong compound annual growth rate (CAGR) of 8.5%, according to research and consulting firm GlobalData.

The company’s latest report says that Brazil’s increasingly elderly population, which will lead to a rising incidence of chronic and lifestyle-associated diseases, as well as the country’s robust investment in healthcare, will be key drivers of market growth during the forecast period.

Joshua Owide, GlobalData’s director of healthcare industry dynamics, says that the Brazilian pharmaceutical industry continues to prosper, primarily due to the country’s economic policies and reforms.

“Brazil has emerged as a global manufacturing hub for pharmaceutical and biotechnology companies, with countries such as India investing heavily in the manufacturing sector after former Brazilian health minister, José Serra, invited investment from generic companies,” said Mr. Owide. “As a consequence, Brazil is now one of the most attractive and promising pharmaceutical markets in the world. Indeed, its pharmaceutical market value has increased considerably over the past six years, having more than doubled from $14.1 billion in 2008.”

GlobalData’s report also says that Brazil’s market for generic drugs is witnessing rapid growth, with almost all of the country’s generics procured by the public healthcare system.

“Government initiatives, such as the People’s Pharmacy program (Farmácia Popular), have been responsible for the increased usage and availability of generics, further boosted by the announcement of $34 billion investment in the Brazilian healthcare sector in 2014,” said Mr. Owide. “According to the U.S. Department of Commerce, approximately 80% of pharmaceutical companies in Brazil are domestic, and this number has been increasing since the Generic Law was introduced in 1999. However, multinational companies (MNC) currently generate higher revenues than domestic companies.”

The leading MNCs operating in the Brazilian pharmaceutical market are Pfizer, Novartis and Roche, while the major domestic companies are Hypermarcas and EMS Sigma Pharma, according to GlobalData.

For more information on the report click here.