The active pharmaceutical ingredients (API) market in the Americas was worth a staggering $46 billion in 2011, with North America accounting for over 88% of it. But due to rapidly expanding economies and improvements in healthcare, South and Central America (SCA) are set to take a more substantial chunk in the future, according to a new report from GBI Research, a pharmaceutical industry analyst.
According to the report, the SCA region has one of the fastest growing API markets in the world, with a growing demand for generic and biologic medications. Mexico is currently the largest market in the region, but due to an aging population and a strengthening healthcare system, Brazil is expected to overtake by 2017.
SCA countries are becoming increasingly open to global drug producers and supporting the manufacture of medications at home through investments. Many governments in the region are aware of the huge potential of generics and are providing financial backing as well as promoting pharmaceutical growth through the employment of various programs and schemes.
This region is also home to an expanding aging population and is witnessing an increase in lifestyle diseases such as diabetes and obesity—further driving the demand for healthcare and pharmaceutical treatments.
The API market in SCA was valued at $5.4 billion in 2011 and is expected to climb at a Compound Annual Growth Rate (CAGR) of nearly 13% to reach $11.1 billion in 2017. As the North American API market is expected to grow at a more modest CAGR of 4.4%, the SCA will increase its share of the total Americas market to 17.4% from the 11.7% stake held in 2011.