Market Trends of Latin America Pharmaceutical Contract Manufacturing Organization Industry
The Liquid Dose Formulation Segment is Expected to Witness Growth
- Liquid formulations have been used in pharmaceuticals because of their high dosing flexibility, their ability to be swallowed easily, and their ability to act quickly. Most liquid formulations fall into two broad categories: monophasic and biphasic. Within these broad categories are many different dosage forms, such as oral suspension, syrup, solutions, and elixirs. The increasing demand for liquid drug formulations in Latin American countries boosts the market's growth.
- The rise in government initiatives in the healthcare field, biologics innovation, and an increase in cancer and age-related disorders are crucial and critical reasons propelling the expansion of the active pharmaceutical ingredient manufacturing market.
- Additionally, the Brazilian pharmaceutical and healthcare sector will experience strong demand in the medium and long term as the country's demographics are changing rapidly (the proportion of the population aged 50 and over is projected to rise to 24% by 2030). According to the International Trade Association, Brazil is the largest healthcare market in Latin America, and the industry is price-driven with the benefits of new technologies to boost the market's growth.
- Moreover, developing pediatric-specific dosage forms is incredibly challenging due to the many differences between pediatric and adult populations. If the oral dosage form is unsuitable for pediatric patients, the buccal dose form is a good alternative. Children may or may not have the same ability to swallow as adults; however, solid dosage forms are generally difficult for children under the age of 5. It is important to note that children may refuse medication regardless of the size of the tablet if the flavor of the drug is unpleasant. Such factors are expected to fuel the growth of liquid formulations in the region.
- Further, owing to the continued usage of liquid dosage formulation in the nasal and ophthalmic sectors, the liquid dosage formulation segment is expected to record stable growth. This growth is backed up by increasing R&D in nasal delivery systems for certain types of diseases and disorders, such as body pain, osteoporosis, and sexual diseases, which is expected to fuel the demand for contract packaging in the pharmaceutical industry.
- Out-of-pocket healthcare expenditure in Latin America has declined due to increased government investments in health. The growth on healthcare spending in Argentina, Brazil and Mexico boosts the market growth in the region.
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Mexico is Expected to Have a Signification Share in the Market
- The Mexican pharmaceutical market is attracting the attention of global pharma companies due to its low production costs and close proximity to the United States.
- According to the OECD, the country's healthcare expenditure accounted for 5.5% of the GDP in 2023. The health insurance coverage for vulnerable populations expanded over time, accounting for 89.3% among the OECD countries. This has triggered pharmaceutical companies to look into the Mexican market. However, due to weak support from the government and lower per capita health spending among the Mexican population, there is a significant scope for outsourcing pharmaceutical manufacturing.
- Continuous growth in the sales of generic drugs is driving the revenues of the local pharmaceutical contract manufacturers. In addition, significant growth in the Mexican generics market is garnering investments from foreign manufacturers seeking access to other Latin American markets through Mexico-based production activities. According to the International Trade Association, Mexico invests in research for biological applications and life sciences, which is a significant growth opportunity for the market.
- According to the International Trade Administration, pharmaceutical sales in Mexico were estimated to reach USD 10.83 Billion in 2023. The Mexican government provides affordable, safe, and efficient treatments to the population. Almost 400 laboratories manufacture pharmaceuticals in Mexico, thus boosting market growth.
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Latin America Pharmaceutical Contract Manufacturing Organization Market Report Snapshots
- Latin America Pharmaceutical Contract Manufacturing Organization Market Size
- Latin America Pharmaceutical Contract Manufacturing Organization Market Share
- Latin America Pharmaceutical Contract Manufacturing Organization Market Trends
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