Itaú BBA - Pharmaceuticals and cosmetics: The expansion continues

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Pharmaceuticals and cosmetics: The expansion continues

November 26, 2014

Production and sales data reflect the positive momentum experienced by the sector.

• The Brazilian pharmaceutical industry is experiencing a growth cycle, which began in the 90s with regulatory changes and gained momentum in the 2000s, with income growth and the rise of millions of families into the middle-class. This growth trend will likely be maintained over the coming years, boosted by demand, which does not show any signs of slowdown.

• Production and sales data reflect the positive momentum experienced by the sector, which is also reflected in the indicator of business confidence in the industry.

• Generic medicines are the fastest growing segment within pharmaceutical products. However, strong competition in this category drives prices down, compressing pharmaceutical companies' margins. 

• The trade balance of the pharmaceutical sector posts a strong deficit, as a large part of pharmaceutical raw materials and medicines are imported and the majority of demand is domestic.

• Growth in the cosmetics industry, besides benefiting from income growth as a whole, was also driven by the increase in female participation in the labor force.


 

Please open the attached pdf to read the full report.

 
 



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