While the U.S. and Canada made up the lion's share of the API market across the Americas last year, API manufacturing in Central and South America is growing at a rapid pace and projected to double in 5 years.
A GBI Research report shows that North America constituted 88% of the massive $46 billion raked in from the region's active pharmaceutical ingredient market. The $5.4 billion generated last year out of Central and South America makes up just less than 12% of that total but the API market there will climb at a compound annual growth rate (CAGR) of nearly 13% through 2017. It will then reach an estimated $11.1 billion.
That compares with a CAGR of just 4.4% expected in North America, GBI researchers say. GBI says the API market in all of the Americas is expected to reach $63.8 billion by 2017, for a CAGR of 5.6%.
Which countries are fueling that growth? While several countries have invested in expanding their local pharmaceutical infrastructure, Brazil will account for much of the growth. With South America's largest economy, Brazil will overtake Mexico as Central and South America's largest API market by 2017. Its aging population and emerging healthcare system are the reasons, GBI says.
An increase in diabetes and obesity across Central and South America is driving the demand for better healthcare and more pharmaceutical treatments in general, GBI reports.
- have a look at the GBI release
- read over the study abstract