The Brazilian pharmaceutical market is set to grow from $25.3 billion in 2016 to $29.9 billion in 2021, representing a compound annual growth rate of 3.5%, according to research and consulting firm GlobalData.

The company’s latest report states that Brazil is one of the most attractive and promising pharmaceutical markets in the world, with all major global pharmaceutical companies operating in the country. Changing demographics are a key driver of the Brazilian pharmaceutical space, as a growing population of elderly citizens is likely to increase the incidence of chronic and lifestyle diseases. When combined with the availability of universal healthcare and advancements in pharmaceutical and medical technology, this is likely to drive demand for healthcare services.

Brazil’s overall health expenditure is also expected to grow through 2018, supported by increased investments in the country’s universal and free public healthcare system, in line with the government’s initiatives to improve access to health services and pharmaceuticals among underserved parts of the population. This upward trend in health spending should have a positive impact on pharmaceutical sales and provide substantial opportunities for companies.

Local pharmaceutical companies are also seeing improved market opportunities. Traditionally, Brazil’s pharmaceuticals space has remained largely reliant on imports, with its biotechnology sector highly dependent on imported raw materials and active ingredients for generic drugs. Government initiatives such as the Growth Acceleration Program and the Greater Brazil Plan were introduced to increase domestic production. The former is focused on modernizing public infrastructure, while the latter encourages local production of innovative drugs and promotes public-private partnerships in the form of technology transfer to public pharma laboratories for the development of higher-priced biosimilars.