Latin America is currently undergoing a seismic geopolitical realignment. A region long known for foreign intervention, first by Europe and then the US via the Monroe Doctrine,  is once again becoming a primary theater for great power competition. This shift is not merely rhetorical; it is characterized by a significant, assertive re-engagement by the United States that is aimed at rolling back external influences and cementing hemispheric dominance.

This aggressive geopolitical pivot has profound implications for commercial sectors across the board. However, few industries are as sensitive to these shifts — or as critical to national stability — as the medical equipment and device market. As Washington exerts newfound economic and military pressure on the region, the market for medical equipment and devices will face its most significant disruption since the onset of the COVID-19 pandemic.

The Hard Power Pivot: Washington Reasserts Control

For years, US influence in Latin America was viewed as waning and characterized by neglect that allowed other global actors to step into the void. That era now appears to be over. Washington has initiated a strategy defined by hard power and coercive diplomacy aimed at ensuring regional alignment with US interests.

The most startling manifestation of this new reality is the recent operation that resulted in the capture of Venezuelan President Nicolás Maduro. This action sent a shockwave through every capital in the Western Hemisphere and showed that the US is willing to utilize direct intervention to achieve its strategic goals.

On a smaller scale, the US is still trying to impose its will on the region in other ways. Thinly veiled warnings directed at key regional players like Mexico and Colombia regarding trade compliance, migration enforcement, and drug policy have reinforced the message: Alignment with Washington is no longer optional.

These actions inevitably create severe tensions in commercial relations among nations. When diplomacy is conducted through the lens of national security and military capability, standard trade relationships become volatile. Sovereignty concerns are heightened, and nations become wary of economic leverage being used as a political weapon. The immediate outcome of this posture is a climate of uncertainty that forces Latin American governments to recalculate their foreign policy risks, their economic priorities, and their alliances.

The Context: The Dragon in the Operating Room

To understand the impact of this US resurgence on the medical market, one must first understand the status quo. Over the past decade, and accelerating dramatically during the COVID-19 pandemic, China has become the undisputed primary supplier of medical devices and equipment to Latin America. 

When the pandemic struck and Western nations hoarded ventilators, PPE, and diagnostic tools, Beijing stepped in with “mask diplomacy.” Even amidst manufacturing limitations, trade restrictions, and logistical barriers, Chinese manufacturers provided rapid, affordable access to medical equipment when few others could or would.

Consequently, Chinese products — from high-end imaging scanners in Brazilian hospitals to basic consumables in Peruvian clinics — became ubiquitous throughout Latin America. This dominance was built not just on price, but on availability and a lack of viable alternatives during a global emergency. In recent years, this trend solidified, with Chinese medical imports frequently outpacing American products across the region.

Chinese medical products went from representing 25% of imports into Latin America in 2018 to 34% in 2024. Meanwhile, the share of US imports into the region fell from 38% to 28% over the same period. This trend was seen most notably in Brazil, Colombia, and Chile, where Chinese products represent over 50% of all medical devices imported.

The Short-Term Shock: A Forced Realignment

The newfound US assertiveness is poised to disrupt this Chinese-dominated landscape almost immediately. In the short term, we can expect the US to leverage its political wins (like the neutralization of the Maduro regime) and its pressure campaigns on Mexico and Colombia to force a commercial pivot.

Over the next 24 months, we are likely to see the opening of a long-forgotten healthcare market in Venezuela. Interestingly, the seizing of Venezuelan oil and the fall of the Maduro regime has also placed immediate pressure on Cuba’s already fragile system, so Cuba may well be the subsequent market to open to investment. 

Healthcare systems in both Venezuela and Cuba will need to be redesigned. The initial focus will be placed on increasing access to primary care, with investments in specialized hospitals occurring in a secondary phase. Immediate opportunities will arise in almost every area of the healthcare system, from the rebuilding of hospital infrastructure to technology, equipment, devices, consumables, and pharmaceuticals. Infrastructure, distribution, servicing, and financial models will need to be reassessed and, in many cases, rebuilt from the ground up. 

In established and existing markets, we can expect explicit demands or strongly worded “guidance” for Latin American health ministries to favor US partnerships over alternatives such as the current Chinese trade agreements. This could be facilitated via free trade agreements, tariffs, and financing mechanisms or tied to broader trade concessions. Nations eager to avoid being the next target of US ire, or those seeking to capitalize on a closer relationship with a resurgent Washington, will likely comply.

For all the euphoria associated with the opening of potential markets or commercial opportunities, it is prudent to recognize the uncertainty that surrounds the current context.  While the market may reward quick actions, the volatility of these situations may result in costly undertakings. Caution may be in order.

Long-Term Implications: Fragmentation and Resentment

While the US may achieve short-term market gains through these new interventions into the Latin American markets, the long-term implications are far more nuanced and complex.In a region where 70% of care is delivered by the public sector and where budgets are tight, market drivers (such as pricing) will be difficult to displace. It is unlikely that Latin American nations will completely abandon their commercial ties with China, even under US pressure.

While American products may regain some lost ground, Chinese manufacturers are unlikely to be completely dislodged. Instead of favoring American products for their technological or commercial benefits, we may see countries hedging their bets by buying American high-tech equipment to appease Washington while quietly continuing to source consumables and mid-tier technology from China to keep their budgets manageable.

Furthermore, heavy-handed tactics breed resentment. While Latin American nations may bend to US pressure temporarily, they will likely seek to regain strategic autonomy over the long term.

China, too, will adapt. Rather than just selling exports, Beijing may deepen its strategy by localizing production within Latin America, bypassing trade barriers and embedding itself deeper into the regional economy through technology transfers that the US has historically been reluctant to offer.

Navigating a New World Order

The capture of Nicolás Maduro and pressure on key allies mark a definitive turning point in US-Latin American relations. The era of passive competition is over. Ultimately, the power shifts in Latin America are not merely political maneuvers; they are economic earthquakes with profound implications for everyday commerce.

The medical equipment market serves as a vivid microcosm of this larger struggle, where geopolitical aspirations directly intersect with public health needs and commercial interests. The coming years will undoubtedly witness a delicate dance of diplomacy, economic incentives, and strategic partnerships as Latin American nations navigate a world increasingly shaped by the competing ambitions of global superpowers.

Next Steps

Position your brand for the LatAm pivot. As Washington reasserts dominance in the region, the medical device and pharmaceutical sectors face their most significant disruption in years. Gain clarity on emerging trends and market access risks with GHI’s expert research. Contact us today to see how our data can help you stay ahead of the competition.

Various countries in the region have begun to adopt more advanced surgical tools and equipment. In particular, minimally invasive equipment used for endoscopy, laparoscopy or robotic-assisted procedures has shown substantial growth. Let’s take a closer look at the numbers.

Endoscopy

One medical technology that has seen significant growth and is expected to grow even more in the coming years is endoscopy. An endoscope is a long, flexible tube that can be inserted inside the body to examine internal organs with a light and a camera. In many cases, surgical instruments can be inserted through a channel in the endoscope to remove tissue or perform other surgical procedures.

Endoscopes are often thought of as tools for digestive procedures and are inserted through the mouth or anus, but there are other forms of endoscopy, as well. These include arthroscopy, cystoscopy, hysteroscopy and many more.

In recent years, endoscopy has shown consistent growth in Latin America that has outpaced the growth of other surgical equipment. For example, the “installed base” of equipment in 2023 overall grew by just 4.7%, but endoscopes grew by 10.2% that year, and endoscopy towers grew by 13.7%.

Endoscopy in Latin America by the Numbers

• Revenue of the Latin American endoscopic device market in 2025: $2.2b
• Projected revenue of the market by 2030: $3.1b
• Projected compound annual growth rate (CAGR): 7.14%

Growth in the endoscopy market is consistent all over the region, but major markets like Argentina, Mexico and Brazil are major drivers, with projected CAGRs of 13.6%, 10.1%, and 9.7% respectively.

Laparoscopy

Laparoscopy is a form of endoscopy, but it’s specifically used to examine and treat the organs of the abdomen and reproductive system via an incision in the abdomen. Like other endoscopic equipment, however, laparoscopy has seen major growth in Latin America in recent years, continued growth in the market is anticipated.

Laparoscopy in Latin America by the Numbers

• Revenue of the Latin American laparoscopic device market in 2023: $2.35b
• Projected revenue of the market by 2033: $4.61b
• Projected compound annual growth rate (CAGR): 7.79%

Like endoscopic equipment in general, laparoscopic equipment has shown growth throughout the region but particularly in countries like Brazil and Mexico, at 12.9% and 9.2% growth in 2023, respectively. Chile also showed significant growth in the laparoscopic equipment market with 12% growth in 2023, while Argentina and Colombia lagged behind at 5% and 4.9% growth that year.

Robotics

Robotic-assisted surgery is a growing market worldwide, and while the reach in Latin America is still fairly small, it’s also showing significant growth, as well as a projected forecast for growth in the years ahead.

Surgical Robotics in Latin America by the Numbers

• Revenue of the Latin American surgical robotics market in 2024: $246.6m
• Projected revenue of the market by 2033: $573.2m
• Projected compound annual growth rate (CAGR): 9.8%

Here again, the demand for surgical robots in Brazil and Mexico is ahead of the rest of the region, but all of Latin America is seeing a rising demand and a forecast for increasing revenues over the next decade.

Why the Rise in Demand?

As these numbers indicate, Latin America is ready and willing to spend the money to update its medical technology and bring its facilities up to date with the latest equipment and devices. What prompted this pivot in the region? The answer is multi-faceted, but one theory is that the COVID-19 pandemic exposed many of the shortcomings of the Latin American healthcare system. Since then, administrators and patients have demanded better treatments, which requires better technology.

Of course, other factors are at play here, as well. Patients are learning more about the less invasive medical procedures that are now available from equipment such as endoscopic, laparoscopic and robotic devices, and they are demanding that their treatments be performed this way. Chronic diseases such as obesity, heart disease and diabetes are also becoming more prevalent, which requires more diagnoses and procedures be performed with these tools.

Upgrading to the latest equipment has benefits for the healthcare facilities as well as the patients. Less invasive procedures from endoscopy, laparoscopy and robotics have improved outcomes and shorter hospital stays. This creates greater satisfaction rates among patients and allows the hospitals to see more patients in a shorter amount of time.

Barriers to Adoption

As with all changes in technology, there are challenges along the way as hospitals begin to upgrade. New equipment is costly, and many public facilities lack the budgets to upgrade as much as they’d desire. This is why some of these devices and equipment, particularly robotics, are growing at a faster rate in private hospitals than in public ones. Even so, tools like endoscopes and laparoscopes are increasingly being seen as the standard of care for many procedures, which puts pressure on public health systems to upgrade, regardless of the associated costs.

Other barriers include the challenges of training or hiring healthcare professionals to run these new devices and equipment. This can make the costs and challenges much greater than simply acquiring the equipment. However, most facilities report long-term benefits in terms of efficiency, outcomes and patient satisfaction when they make these initial investments.

Key Takeaways for Health Care Companies

If your company is in the surgical device and equipment market, these numbers clearly indicate that the entire Latin American region is ripe for growth in the years ahead, particularly in the endoscope, laparoscope and robotics markets. Now is the time to finetune your strategy, not only for private hospitals, but also for the public healthcare systems that are trying to keep up with patient demands.

You can rely on GHI and its suite of data solutions like HospiScope and SurgiScope to check hospital inventory and tailor your strategy where the greatest needs exist. There’s no question that this market will only continue to grow, so it’s time to finalize and implement your sales strategy for 2026 and beyond.

Next Steps

Contact GHI to learn more about surgical trends and their potential impact on the medical device and equipment markets in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

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Sources:

• https://my.clevelandclinic.org/health/diagnostics/25126-endoscopy
• https://my.clevelandclinic.org/health/procedures/4819-laparoscopy
• https://www.grandviewresearch.com/horizon/outlook/endoscopes-market/latin-america
• https://www.grandviewresearch.com/horizon/outlook/endoscopes-market/argentina
• https://www.grandviewresearch.com/horizon/outlook/endoscopes-market/mexico
• https://www.grandviewresearch.com/horizon/outlook/endoscopes-market/brazil
• https://www.statista.com/outlook/hmo/medical-technology/medical-devices/endoscopic-devices/latam?srsltid=AfmBOoqlTFhssZ09QS62ZAn9yXFNMPQYkI44NhKsNsZQSRODDFzODjZz
• https://www.marketdataforecast.com/market-reports/latin-america-endoscope-reprocessing-market
• https://www.businessmarketinsights.com/reports/latin-america-laparoscopic-devices-market
• https://www.marketdataforecast.com/market-reports/latin-america-laparoscopy-device-market
• https://www.grandviewresearch.com/horizon/outlook/surgical-robots-market/latin-america
• https://www.tritonmarketresearch.com/reports/latin-america-surgical-robotics-market
• https://globalhealthintelligence.com/ghi-analysis/parsing-the-robotic-surgery-market-in-latin-america/

Though they are not a new medical technology, biopharmaceuticals, also known as biologics, have significantly expanded in recent years and are continuing to evolve in their potential to treat illnesses such as cancer, diabetes, and more. While traditional drugs are created via chemical means and are made up of small molecules, biopharmaceuticals are made from living cells, proteins, tissues, or nucleic acids. They typically have larger molecules than traditional pharmaceuticals and are often administered via injection.

More about Biopharmaceuticals

Biopharmaceuticals made headlines a few years ago with the rapid development of the COVID-19 vaccine, but that’s far from the only type of biopharmaceutical in regular use. Types of biopharmaceuticals include:

• One of the original biopharmaceuticals, vaccines have helped eradicate diseases around the world, such as smallpox and measles, among others.
• Monoclonal antibodies (mAbs). These drugs mimic the immune system and target specific proteins to block their activity or destroy them. They are used in the treatment of autoimmune disease and some cancers.
• Gene therapy. These medications can cure or treat genetic or infectious diseases by introducing genetic material into the patient’s cells. They have been used to treat retinal diseases, spinal muscular atrophy, and more.
• Cell therapy. These treatments include stem cell transplants and involve modifying cells to enhance or restore their function. They can treat leukemia, lymphoma, and other degenerative disorders.
• Recombinant proteins. These proteins are grown inside living cells and include enzymes, hormones, and cytokines that are used to treat diseases ranging from hemophilia to diabetes.

Vaccines in Latin America

In years past, Latin America was often reliant on other regions to provide vaccines and other biopharmaceuticals. This became problematic in the wake of the COVID-19 pandemic, when only 15 percent of vaccines were locally produced. This led to vaccination rates below 25 percent in some countries, such as Guatemala, Venezuela, and Honduras, in October 2021.

Luckily, the region took this development as a “lessons learned” moment and has made great strides in easing regulations and promoting the production of both vaccines and other pharmaceuticals since then. In September 2021, the Pan American Health Organization (PAHO) approved the Special Program, Innovation and Regional Production Platform, aiming to increase the production capacity for essential medicines and health technologies across Latin America. The Forum for the Project and Development of South America (PROSUR) is another organization that is pushing similar efforts forward.

These efforts are already beginning to pay dividends across the region. For example, in July 2024, the Brazilian vaccine manufacturer Bio-Manguinhos/Fiocruz joined CEPI’s network of vaccine manufacturers to help create faster and more equitable responses to future disease threats. This growth appears to be region-wide, with countries such as Mexico, Colombia, Chile, and more expected to see growth in the vaccine market in the upcoming years. You can find more data in the table below.

Easing Regulations on Other Biopharmaceuticals

Aside from vaccines, Latin American regulatory agencies are also making efforts to speed up and streamline the process of biopharmaceutical approvals. This should result in a better environment for companies trying to bring drugs to those markets.

In Brazil, for example, the Brazilian Health Regulatory Agency, ANVISA, began implementing a new resolution on January 21 to simplify the process of introducing biological products, including vaccines, radiopharmaceuticals, and generic drugs. It also makes corrections, new indications, withdrawals, and other processes around pharmaceuticals easier to navigate. To be eligible for this simplified process, companies must have at least one other drug or biological product already approved in the Brazilian market.

Other markets in Latin America, including the Dominican Republic and Colombia, have announced similar measures in recent months. In July 2024, Argentina announced several related measures to ease restrictions on pharmaceuticals, including allowing more generic drugs to enter the marketplace, easing barriers to opening new pharmacies, and permitting the sale of over-the-counter medications in businesses other than pharmacies.

Mexico has undergone similar efforts to promote clinical research and enhance access to generic and biosimilar medicines. Interestingly, Mexico’s efforts appear to be targeting not only local access, but also the availability of these medications in markets such as the United States. What this means for pharmaceutical manufacturers is potentially more friendly and open markets for new or generic versions of drugs in the years ahead.

An Increase in Manufacturing

As these regulatory changes indicate, Latin America is “all in” on the biopharmaceuticals market, and these regulatory changes are already beginning to pay dividends. The Center for Global Development notes that many middle-income countries, including Brazil, have already become essential players as global vaccine suppliers. As production continues to ramp up across the region, it’s possible that other countries could follow suit as important players in the worldwide vaccine market.

The other component of the rise in biopharmaceutical manufacturing in Latin America is the role of biosimilars and generic drugs. As specialty medications have grown more expensive, the availability of more affordable generic alternatives has become critical for many people in the region who need them. The easing of regulatory restrictions in countries such as Brazil, Argentina, Colombia, and more has made it easier to bring these drugs to market.

As the market for these medications has expanded in Latin America, so too has the pool of talented professionals looking to work in these industries. Many students are now pursuing biotechnology as their desired profession, leading to an influx of scientists and other skilled professionals who continue to drive innovation in the field.

For a closer look at how the biopharmaceutical industry is growing in Latin America, check out the table below:

Clinical Trials in Latin America

One offshoot of the growth of biopharmaceuticals in Latin America is the explosion of clinical trials in the region. Latin America is now the world’s fourth-largest clinical trials market and is seeking to quadruple participation in the coming years. Around 70 percent of the trials take place in Argentina, Brazil, Chile, Colombia, Mexico, and Peru.

Experts cite Latin America’s diverse patient population, lower operational costs, and improved regulatory framework as reasons that clinical trials have begun to grow substantially in the region. This development has further contributed to Latin America’s growing role as an innovator in the biopharmaceutical market.

Key Takeaways for Health Care Companies

With the easing of restrictions and the efforts to ramp up manufacturing and clinical trials across the Latin American region, pharmaceutical manufacturers are well-positioned to take advantage of these regulatory and market changes in the months and years ahead.

If you’re a major multinational pharmaceutical company with a significant market presence in the region, you should continue to see growth due to the streamlined processes many countries are implementing to review, approve, and add drugs to the marketplace. One interesting challenge for these larger manufacturers in the coming years may stem from increased competition, as more generic drugs and biosimilars from smaller manufacturers enter the market. Larger companies can stay ahead of the curve by staying agile and continuing to push for innovation in the biopharmaceutical sector.

Next Steps

Contact GHI to learn more about healthcare trends and their potential impact on the biopharmaceutical industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

Sources:

• https://www.path.org/l/diagnostic-and-vaccine-manufacturing-capacity-in-latin-america/
• https://www.paho.org/en/special-program-innovation-and-regional-production-platform-rp
• https://cepi.net/mobilising-brazils-manufacturing-might-support-vaccine-production-global-south
• https://www.statista.com/outlook/hmo/pharmaceuticals/vaccines/guatemala
• https://www.elsevier.es/en-revista-vacunas-english-edition–259-articulo-latin-american-participation-in-scientific-S2445146022000267?covid=Dr56DrLjUdaMjzAgze452SzSInMN&rfr=truhgiz&y=kEzTXsahn8atJufRpNPuIGh67s1
• https://tdtmvjournal.biomedcentral.com/articles/10.1186/s40794-021-00135-5
• https://www.raps.org/news-and-articles/news-articles/2025/1/latin-america-roundup-agencies-continue-shift-to-o
• https://scigeniq.com/the-evolving-regulatory-landscape-for-latin-american-pharma-companies/
• https://www.dlapiper.com/en/insights/publications/2024/07/argentina-deregulates-healthcare-and-pharmaceutical-industries
• https://www.drugpatentwatch.com/blog/the-growing-importance-of-specialty-generics-in-the-latin-american-pharmaceutical-market/#:~:text=The%20Latin%20American%20pharmaceutical%20market%20has%20been%20experiencing%20significant%20growth,effective%20alternative%20to%20branded%20pharmaceuticals
• https://www.cambridge.org/core/journals/journal-of-law-medicine-and-ethics/article/pharmaceutical-market-for-biological-products-in-latin-america-a-comprehensive-analysis-of-regional-sales-data/6AE11D8A159BD46B0CA243A1BAC709A7
• https://www.raps.org/news-and-articles/news-articles/2024/3/latin-america-roundup-brazil-and-colombia-advance
• https://www.languageconnections.com/clinical-trials-in-latin-america/
• https://www.thepharmaletter.com/pharmaceutical/latin-america-seeks-to-quadruple-its-participation-in-clinical-trials
• https://www.bioaccessla.com/blog/why-latin-america-leads-in-clinical-trials-exploring-the-key-factors

Tariffs are top of mind for many these days, particularly those dealing with international business relationships and the day-to-day realities of selling medical devices, equipment and supplies in different countries. Economic uncertainty quickly translates to uncertainty, making sales and forecasts more challenging. The last several months have brought plenty of that in the form of constantly evolving tariff news coming from the United States.

The Time of Tariffs

Tariff news has been almost constant, and evolving, since Donald Trump took office as the President of the United States in January 2025. One of the first major changes was a universal 10% baseline tariff on all countries, which went into effect on April 5. However, other countries, including Mexico, Canada, China and more, have been hit with even higher tariffs. Various tariffs have also been implemented for specific goods, such as oil, steel, minerals, and more. Other factors that have impacted tariff levels include the perception of an unfair trade balance with the United States, promises of larger investments, and individual negotiations with the White House, amongst others.

One resulting fallout of this is a “tariff yo-yo.” Tariff news has become almost a daily occurrence, and the rates on different countries, goods, and services seems to change frequently. It’s also unclear which tariffs have been implemented, and which have been merely threatened. This makes it confusing for equipment manufacturers and providers to understand what tariff rates will be leveraged on their goods at any given time in any given country.

The Reciprocal Fallout

Then, of course, there’s the impact of “reciprocal tariffs,” which some countries, including China, have leveraged on American imports because of America’s tariff-related actions. This means that manufacturers not only have to be concerned about the rate of tariffs in the United States, but across the globe, further muddying the tariff waters. Interestingly, Donald Trump’s heavy use of tariffs in international trade may also be having the secondary impact of encouraging other countries to do the same.

A recent example of this is the trade tension between the EU and China related to medical devices. These issues first began in June, when the European Commission announced that Chinese companies would no longer be able to participate in EU public tenders for medical devices that are worth over $5.8 million. In July, the Chinese reciprocated on the EU with a similar regulation. The Chinese government is now restricted from purchasing medical devices from the European Union that exceed 45 million yuan ($6.3 million) in value.

Global trade tensions have become much more than just an American import issue. They are a factor that companies will need to consider in their price points and sales strategies, regardless of which country they’re coming from and where they’re going.

How Trade Instability Impacts the Medical Market

While they may have their political defenders, there’s no question that tariffs make international business challenging for all participants. When prices and taxes are stable, it allows companies to think ahead. They can plan their sales strategy, set their vision for the future and create a roadmap for continuing growth. Forecasts become more challenging when businesses are unsure of how to set pricing on their products across different markets from day to day.

For the medical device market, some of the challenges of tariffs become even more complex and critical. Many medical devices are large, expensive machines, so the impacts of tariffs can be enormous for items that are already quite expensive. They are also often manufactured using materials from across the globe, and each of these components may be impacted by their own set of tariffs. So not only the sales, but the manufacturing of these items grows more complex and costly.

Then there’s the essential nature of many of these machines. While cars and other costly, complex equipment are undoubtedly important in keeping the economy moving, people’s lives depend on medical equipment, devices and pharmaceuticals. If they can’t get them, the costs to a region can be enormous. This is particularly true in a region like Latin America, where over 90% of all the medical devices and equipment in the region are imported from other countries.

How GHI Can Help You Form Your Sales Strategy

Despite the continuing global challenges of tariffs, the reality is that international commerce will continue, particularly in a medical sales market where equipment and devices are essential for public welfare. The firms that will come out ahead are those with the most up-to-date market data on which devices are selling in which markets, and for what prices. In times of uncertainty, you can’t afford to operate blindly. You need real, actionable intelligence to guide your decisions moving forward.

One tool that helps medical firms make informed decisions is GHI’s BrandTrack (formerly ShareScope). By providing real-time data on which devices are selling in which markets, and who is importing more or less down to a product-by-product level, it is essentially providing market tariff impact information in real time.

“With a BrandTrack subscription, companies can monitor the import of their devices in several countries to see where they stand, and then verify that with their approach internally,” says Mariana Romero Roy, Senior Director of Intelligence Services for Global Health Intelligence. “They can also view data from their competitors in the market and define their marketing strategies accordingly.”

Next Steps

Contact GHI to learn more about the impact of tariffs on the health care industry in Latin America and how you can navigate the challenges. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

Among the current global trade tensions, the United States and President Trump’s implementation of tariffs on imports have garnered the most headlines. Although the numbers seem to be constantly in flux, the current tariff rate on Chinese goods stands at 55%, one of the highest rates in the world. European goods entering the U.S. currently face a 10% tariff, though that can vary by good or by country.

Escalating Chinese/EU Tensions

Though it hasn’t generated as much media attention as the U.S. tariffs, a smaller but important tension is also currently happening between the Chinese government and the European Union. This particular spat may have even more significant ramifications for medical device manufacturers.

The issues first began in June 2025, when the European Commission announced that Chinese companies would no longer be able to participate in EU public tenders for medical devices that are worth $5.8 million or more. The rationale for this decision was that European medical device firms did not receive fair access to Chinese markets.

However, instead of encouraging the Chinese to open their markets to more European firms, the decision had the opposite effect. In July 2025, the Chinese essentially reciprocated on the EU with a similar regulation. The Chinese government is now restricted from purchasing medical devices from the European Union that exceed 45 million yuan ($6.3 million) in value.

The Resulting Fallout

What’s interesting about this recent back-and-forth is that it comes at a time when it would be beneficial for the EU and China to be unified in the face of rising tensions with the United States. Instead, the tariffs seem to be having the opposite effect in terms of encouraging similar trade-related behavior elsewhere around the globe.

Though it’s still early in the standoff between China and the EU, tensions still seem to be rising at this point. Thus far, we’ve seen a war of words from both sides of the trade dispute, with few signs that the policies will be changed in the months ahead. China has also escalated the trade war with Europe in other ways, as well, including imposing antidumping taxes on European brandy and threatening or imposing tariffs on pork and dairy products.

What This Means for Device Manufacturers

For medical device firms conducting business and competing for tenders in China and the EU, the implications of this escalating trade war are pretty apparent. EU-based firms doing business in China, and vice versa, are sure to see a major blow to their sales prospects, as they are essentially banned from selling their high-dollar devices in those markets.

The story is different, of course, for non-EU firms doing business in China, or non-Chinese firms competing for tenders in the EU. For these firms, new opportunities in these markets may now exist, particularly for companies that make devices that compete against those of the EU and Chinese firms.

Is There More to Come?

However, there is also the possibility that this is just the opening strike in an escalating global trade war related to medical devices, so companies will certainly want to keep an eye on future developments in the months ahead. It’s certainly no secret that other markets aside from the EU, including Latin America, are wary of China’s impact on their markets, particularly their ability to produce lower-cost versions of medical devices and undercut the competition when it comes to winning tenders. Considering the fact that Latin America imports around 90% of its medical equipment and devices from other countries, any similar moves by Latin American governments could have a major impact on regional markets.

For medical device manufacturers in the United States who are exporting their goods around the globe, the potential future impact of this escalation is even more apparent. With the current ongoing tariff situation, most countries have a sound rationale to get trade retribution of some form on the U.S., whether that’s via reciprocal tariffs on U.S. imports or other measures. If banning medical device manufacturers from competing for tenders in other countries becomes more of a trend than an anomaly, the U.S. could potentially become a target as a result of tariff retribution.

Key Takeaways for Medical Companies

Although a lot of this is simply speculation for the time being, the rising tensions between the EU and China and the resulting fallout for medical device manufacturers in the two regions are certainly a situation worth keeping an eye on, even if it doesn’t directly impact your company or the region where you work right now.

As always, you can prepare yourself for success in the ever-tumultuous global marketplace by relying on GHI and its tools and services to refine your sales approach for the Latin American market. With BrandTrack, for example, you can see which regions are importing more or less of specific products and tailor your strategy accordingly. Even as tensions mount and prices fluctuate, the need for valuable medical devices will remain consistent, so the key is to identify where the need is greatest and be ready to offer your goods and services in those areas.

Next Steps

Contact GHI to learn more about the latest trade tensions and their potential impact on the health care industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

Whether it was COVID-19 a few years ago, the resulting supply chain issues that followed or the current trade battles that are reaching their global apex, medical supply and equipment companies are certainly no stranger to market uncertainty. In fact, you could argue that recent years have indicated that the only thing certain in this business is uncertainty.

The most recent uncertainty on many people’s minds, of course, is the looming threats of tariffs from the United States. The current proposal is a 10% baseline tariff on goods sent to the U.S. from most countries, with even higher tariffs threatened for countries such as Mexico, Venezuela, Nicaragua and a few others. Of course, this has created the additional possibility of reciprocal tariffs on U.S. exports to other countries, as well, further muddling the medical device market. Compounding the issue is the volatility of the tariff negotiations themselves—often on-again, off-again—which makes it even more difficult for companies to plan with any degree of certainty.

Though it hasn’t made as many waves, currently the EU and China are going through a similar battle over medical device restrictions that may have far-reaching implications, as well. The EU recently voted to ban Chinese companies from participating in public procurement tenders for medical device contracts valued at more than 5m Euros, which resulted in a similar ban for EU-based companies in China.

What all this means isn’t exactly clear yet, other than procuring devices or supplies from other countries, or sending them to other countries, without penalty is becoming increasingly difficult. Add those challenges to the usual supply chain issues, regulatory hurdles and inexpensive foreign competitors, and staying successful in the market is now more challenging than ever.

How to Stay Ahead

Of course, markets have always been fluid: That’s not a new phenomenon. But the current rate at which changes occur requires even more fluidity on your part as you craft your business strategy for winning contracts. The bottom line is that agility in your planning and objectives is more important than ever.

Strategy #1: Review plans and objectives frequently

Does your company have a sales plan that gets reviewed on an annual basis to meet your goals and objectives for the coming year? It might be time to revisit those plans more frequently: Quarterly, monthly, or even ad hoc as new situations arise. With all the volatility currently in the market, your company needs to be able to pivot as new challenges arise without it sinking an entire year of progress.

If your operation is large, then you should have even more opportunities for agility simply based on who you can turn to for supplies, manufacturing, distribution and other key facets of your manufacturing process. “Global supply chains are always under pressure, and the recent news regarding potential tariffs in the United States has only complicated issues,” says Marc Duocastella, General Manager of Philips Mexico. “Phillips handles these challenges by diversifying our manufacturing with factories all over the world. If one site has an issue, we have other alternatives.”

Of course, whether your company is large or small, it takes a concerted effort to truly make your company agile in the face of uncertainty. But by prioritizing it and making it a part of your day-to-day operations, even the largest brands with the most established processes can build more agility into their workflow. Today’s market environment just might demand it for continued success.

Strategy #2: Build brand loyalty

While being able to adapt is key to coping with market uncertainty, another core strategy for weathering the storm is a bit of a throwback, and that’s relying on strong client relationships. If you have developed true loyalty with a strong customer base, that tends to stick regardless of what market fluctuations occur — within reason.

While developing brand loyalty is an age-old tenet of any business, the methods for fostering those relationships have changed. One new approach that some companies have adopted is letting sales grow organically by recruiting select healthcare providers as “brand ambassadors” and letting them do some of the heavy lifting for evangelizing the value of your products.

Think of these brand ambassadors as social media influencers on a larger, more strategic scale. If you hand-pick the right people who are plugged in and can spread the good word about your products in the proper channels, that goodwill tends to grow all on its own even without heavy involvement from your sales team. Having someone outside your company as a proponent of your product also lends an air of authenticity to the proceedings and may bend the ear of others who are less likely to be receptive to conventional sales methods.

Regardless of your approach, market experts agree that a wide footprint of loyal customers is key to weather any market uncertainty. “We have a footprint of more than 400 people across Mexico, some who have been working with our company for over 30 years,” says Duocastella. “Our stakeholders are more like family than clients.”

Strategy #3: Research and share results

While positive word of mouth certainly doesn’t hurt in fortifying your brand during uncertain times, the other thing that resonates with medical professionals is hard data. Clinical evidence of sound reliability, strong performance and good safety all speak volumes to people considering your product. Specifically, improved outcomes over existing market solutions are also a key driver of sales and tenders.

Clinical research is likely a critical part of your company’s process already, so the key for your sales and tenders strategy is sharing those results with potential clients. If this data can be designed and distributed effectively for a more compelling impact, even better.

Strategy #4: Rely on quality

Ultimately, any effective sales strategy relies on a strong product at its core. Compelling products that fill a legitimate market need have a good chance of surviving the ebbs and flows of the market, regardless of how turbulent the waters may be. By starting with good products, evangelizing their benefits through clinical evidence and brand ambassadors, and being agile in your strategy for handling market fluctuations, you’ll be well-positioned for success in the ever-evolving marketplace.

Next Steps

Contact GHI to learn more about international sales trends and their potential impact on the healthcare industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

While innovation is the driving force of any medical company, complementary tactics may be required to drive sales across specific markets. This is particularly true across sub-segments of the healthcare markets in Latin America.

While the newest, most technologically advanced equipment may be appealing to private hospitals in wealthy areas, equipment companies focused on volume sales in the region need to remember that c. 70% of medical procedures in Latin America take place in the public sector. And those public facilities are often trying to fill needs on a much tighter budget than private facilities.

All that being said, that 70% represents a huge opportunity for companies that approach the market with the right pricing and product strategy. With that in mind, here are a few ideas to pursue and formulate a sales approach for winning tenders in the region.

Strategy #1: There’s a place for “good enough”

Sure, this is not an approach you would ever take in your customer-facing marketing and PR campaigns, but when it comes to your “under the hood” sales strategy for the Latin American public sector, “good enough” can be surprisingly effective to drive sales.

Consider it this way: The public sector still wants the very best that they can afford for their patients. But the reality is that few institutions have the budget for the latest equipment with all the bells and whistles. However, if you can craft a strategy that provides institutions with high-quality, reliable devices at a lower price, then your chances are good at appealing to the mass market.

What institutions are ultimately looking for is a good quality-price ratio that fits their budget. Price is certainly important, but it’s not everything. If you can strike the proper balance between a high-quality product at the right price for your customers, then you’ll hit your mark.

“If you talk to private hospitals, they may want AI, robotics and the latest equipment. Other hospitals have very basic needs,” says the Mexico head of a leading medical device manufacturer. “You need to understand both sides to navigate the differences and approach them with the right services. We must be adaptable to help all patients as effectively as possible.”

Strategy #2: Build relationships through communication, training and service

Savvy salespeople know that even the more affordable models from multinational companies often struggle to compete against lower-cost Asian alternatives. This is where strong fundamentals—like communication, training, and reliable service—can tip the scales in your favor.

Your clients need to know that you’re not just selling them a medical device or piece of equipment: You’re selling them a team of dedicated professionals devoted to their facility’s success and their patients’ health and well-being. By taking the focus away from price and refocusing on factors such as continuous training, servicing and support that are offered along with the equipment, you can make yourself stand out from the competition even at a slight premium.

This is an approach that not only can win you more tenders in the short-term, but also lifelong clients. It’s also an approach that many smaller companies with limited regional presence will have trouble replicating.

Strategy #3: Portfolio sales to win accounts

Winning a tender on one piece of equipment is one thing. The true measure of long-lasting success in the market is to transition from device-based sales to account-based sales. This requires a complementary portfolio that can appeal to multiple needs of a facility or market at the same time.

“We have focused our investments into research and development to understand where our offerings can make the biggest difference, and how we can specialize to meet the needs of the organizations,” says Marc Duocastella, General Manager of Philips Mexico. “We also partner with healthcare professionals to determine which direction we need to go.”

Ultimately, this comes down to product diversification. But it must be informed diversification, based on open communication with clients and a keen understanding of the needs for individual markets or facilities. “We try to be comprehensive in our offerings, whether it’s related to vascular care, oncology or other devices, to meet the needs of a wide variety of patients,” says Sergio Arturo Dominguez Miranda, Head of Cardiovascular Care & Interventional Radiology, Latin America, for Siemens Healthineers. “We also know we are just one part of our patient’s care journey, so partnering with other companies to provide comprehensive care is important.”

Strategy #4: Build teams to win bids

Even with competitive prices, outstanding customer service and a diversified portfolio of products, there’s no question that the market out there for bids is more competitive than ever before. Local companies face not only challenges from overseas competitors, but lingering supply chain challenges that can impact everything from manufacturing to pricing.

Successful companies have realized that a paradigm shift is needed when it comes to assessing and participating in the bidding process. It takes more than just salespeople to get it done. If you haven’t already, you may consider allocating resources to building teams dedicated to winning accounts for your company. They can do the heavy lifting of building relationships, assessing needs, ensuring that your company has the product portfolio on hand to meet those needs, and then supporting that portfolio with the required training, servicing and other needed support. Put it all together, and it’s a winning strategy that can push tenders your way, even if your prices are a touch higher than the competition.

Next Steps

Contact GHI to learn more about international sales trends and their potential impact on the healthcare industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

Whether it’s due to transportation, logistics, government regulations or other issues, international trade always poses unique challenges, particularly when it comes to medical equipment. With U.S. President Trump wielding the tariff cudgel on many international trading partners, that atmosphere has become even more unpredictable.

The tariffs have far-reaching impacts, including a 10% baseline tariff on goods sent to the U.S. from most countries, but Mexico was hit even harder with a 25% tax on imports. Other countries and regions, ranging from the European Union to Guyana may also face a higher tariff rate in the near future. Some countries have imposed reciprocal tariffs on U.S. exports into their countries, which will complicate the international landscape for medical equipment and devices that are largely imported into Latin America.

Staying Strong in Latin America

What can international healthcare, medical device and equipment companies do in the face of this uncertain trade climate? Fortunately, there are a few key tenets companies can focus on to maintain trading advantages and stay ahead of the shifting landscape. Here are some of the top strategies for maintaining good trading relations within Latin America, even in an increasingly complex trade environment.

Strategy #1: Look for Opportunities Locally

If your business is already heavily invested in Latin America, one of the best ways to avoid the challenges of shipping, logistics and retaliatory tariffs is to keep as much business as possible within the region. If your firm already does heavy business in an area, perhaps you have an opportunity to do more, including storage, distribution and manufacturing.

“Global supply chains are always under pressure, and the recent news regarding tariffs in the United States has only complicated issues,” says Marc Duocastella, General Manager of Philips Mexico. “Phillips handles these challenges by diversifying our manufacturing with factories all over the world. If one site has an issue, we have other alternatives.”

Sergio Arturo Dominguez Miranda, Head of Cardiovascular Care & Interventional Radiology, Latin America, for Siemens Healthineers, agrees that focusing on manufacturing close to the source is key to solving supply chain challenges, and there is plenty of opportunity for this manufacturing within Latin America. “There is definitely an opportunity to increase manufacturing here,” he says. “We have sites in Costa Rica, Brazil, Mexico and other locales around the region, but it’s continuing to grow.”

Even if local manufacturing isn’t an option for your company, it’s worth pursuing other strategic partnerships or initiatives with local businesses. Good relationships with local partners can provide your business with advantages over competitors even in the face of economic challenges. Being heavily invested in different regions also offers advantages beyond logistics, including enhancing the resiliency of your business overall. Being geographically diversified can serve to protect your business from unexpected economic factors in specific regions.

Strategy #2: Optimize Your Operations

Nobody likes to talk about belt-tightening, but it’s the reality in many situations. With innovative thinking, companies can uncover ways to continue doing strong business with limited impact on product price or workforce.

Steven Bipes, Vice President of Global Strategy and Analysis for the Advanced Medical Technology Association (AdvaMed), says that dealing with regulatory delays and navigating the approval process in different Latin American countries can end up costing companies more money than tariffs. “We estimate the total financial burden of unnecessary regulations at about $50 billion annually across Latin America,” he says. By working closely with government regulators and ensuring there is a smooth path toward entry and adoption in the region, you can enhance efficiency and save your company millions, he says.

Another way that companies can optimize and make their operations more efficient is by taking a closer look at their supply chain. Whether it’s trade routes, inefficient shipping practices or other wasted costs, there are often ways to tighten up without downsizing. For example, you might find a more efficient route or method for shipping needed supplies and equipment. In some cases, you can bundle or consolidate materials to save costs. Packaging can also be a major cost factor that’s worth a closer look. It’s not uncommon for inefficiencies to creep into the supply chain over time, so all these items are worthy of review.

Making use of GHI’s detailed regional databases of hospitals and medical centers, such as HospiScope, PriceScope, SurgiScope and more, also can help refine your business strategy and tailor your offerings to what hospitals and medical centers truly need. This can minimize wasted efforts and maximize the volume of outreach that leads to actual sales.

Part of that strategy in Latin America is understanding the distinction between the public and private markets and tailoring your offerings accordingly based on who you’re providing equipment to. “If you talk to private hospitals, they may want AI, robotics and the latest equipment. Other hospitals have very basic needs,” says Hector Orellana, Vice President of North Latin America for Medtronic. “You need to understand both sides to navigate the differences and approach them with the right services. We must be adaptable to help all patients as effectively as possible.”

Strategy #3: Explore Disruptive Strategies

In an ever-changing and hostile trade landscape, you can’t pursue business as usual and expect it to keep working. Atypical and even disruptive thinking is the key to turning a sales plateau or downswing into a trade advantage in a challenging market.

Take the growing volume of Asian (and specifically Chinese) medical supply and equipment manufacturers as an example. Many companies are finding it challenging to compete on price in what seems to be a “race to the bottom.” The disruptive thinking here is the opposite approach: Make your higher quality (and prices) work to your advantage by promoting trust and positioning your business as a strategic ally to your clients, thus making your equipment more desirable than less expensive competitors.  Factors such as safety, durability and reliability are at the center of decision-making.

You can go even further by reinforcing your portfolio with product training, product support and medical certifications. If your clients know they can trust your business not only for its high-quality products but can also rely on you for everything they will need to use those products successfully, then you’re on your way to earning a client for life, even if it costs a little bit more.

Another disruptive strategy that has yielded success specifically in Latin America is an adaptive approach to public vs. private hospitals. You may sell devices and equipment with all the latest bells and whistles, and there may be a small volume of private hospitals and centers throughout the region that are interested in paying a premium for the latest and greatest.

However, many hospitals and medical centers across Latin America may be more focused on increasing access than on delivering the latest technology – thus looking for savings along the way. They still want good, reliable equipment, but something a little less cutting edge, but just as reliable at a lower cost will suit their needs just fine. By employing an adaptive strategy that caters to both markets, you can increase your sales across the region without sacrificing innovation.

Next Steps

Contact GHI to learn more about international sales trends and their potential impact on the healthcare industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

Chronic diseases like heart disease, diabetes and obesity are growing problems around the world, not just in Latin America. But the various nations around the region have their own unique issues with these diseases, and each is experiencing a steady rise as time goes by.

For example, the number of adults with diabetes in Brazil in 2022 was projected around 15 million, with 14 million more in Mexico, and those numbers are only projected to grow larger over time. In Mexico alone, adults have twice the rate of type 2 diabetes as Europeans or white Americans.

Obesity poses similar challenges in Latin America, with recent projections from The Lancet putting the rate of overweight people in the region at 57%, with 19% being obese. This is higher than the global rates of overweight and obesity, which are around 39% and 13%, respectively.

When it comes to heart disease, the news for Latin America is a little better, but there is still work to be done in the region, just as there is around the world. Heart disease remains the number one killer of all people globally and in Latin America. But according to the International Journal of Cardiology, rates in the region actually dropped when standardized by age between 1990 and 2019. High blood pressure, or hypertension, also remains an issue around the region, with 35.4% of adults aged 30-79 affected by the disease.

Initiatives to Fight Chronic Diseases

Luckily, several major medical organizations are aware of the challenges of these chronic health diseases throughout the region and are taking steps to reduce their prevalence. One prime example is the Pan American Health Organization (PAHO), which is moving forward with the WHO Acceleration Plan to Stop Obesity throughout Latin America. The nine countries pioneering this initiative are Argentina, Barbados, Brazil, Chile, Mexico, Panama, Peru, Trinidad and Tobago and Uruguay.

The PAHO plan involves several strategies, including:

• Regulating the marketing of unhealthy food products
• Applying front-of-package warning labels to unhealthy foods
• Enhancing the quality of foods offered in schools
• Promoting breastfeeding
• Improving physical activity initiatives in public and school settings
• Adopting fiscal policies that promote healthy diets
• Strengthening primary care

PAHO also has a Better Care for NCDs Initiative in place, which seeks to improve primary care for people with noncommunicable diseases in several ways. This initiative seeks to improve the ability of primary care providers to collect data, create a comprehensive care plan and provide full screening, diagnostic, treatment and follow-up care options for patients with obesity, diabetes, heart disease, cancer, breathing problems and more.

The World Bank Group is another organization that is striving to improve outcomes for people with chronic health conditions by improving access to care. The organization has 28 health projects across Latin America, with investments totaling $3.9 billion. Their goal is to bring quality, affordable healthcare access to 1.5 billion people by 2030. One of these projects is the Nacer/Sumar Plan in Argentina, which brings medical care access to millions of uninsured families.

Regional governments are also making strides to curb obesity and the health problems that accompany it. For example, the Mexican government announced the Vive Saludable, Vive Feliz (Live Healthy, Live Happy) strategy in early 2025. This program includes a national health census, a prohibition on the sales of unhealthy foods in schools and education on healthy diet and exercise. This program shows the Mexican governments emphasis not only on the treatment of diseases but also prevention.

Brazil’s government has a similar strategy to prevent childhood obesity known as PROTEJA that has been in place since 2021. The program involves multiple facets of the community, including health, education, social assistance, agriculture, urban development and more, and the goal is to promote healthy eating and physical activity among the youth of Brazil. More than 1,320 communities around Brazil have joined PROTEJA, and the program won an award from the United Nations Task Force for the Prevention and Control of Chronic Noncommunicable Diseases in 2022.

 The Role of Digital Health

One of the other keys in reducing the prevalence and deaths related to chronic health diseases is increasing access to digital health solutions such as smartphone applications, monitoring and wearable technology and telemedicine. The World Health Organization estimates that greater adoption of these technologies could help save over 2 million lives and 7 million hospitalizations or acute events over the next decade.

The ways that digital health can reduce the risks of diseases such as obesity, diabetes, heart disease and more are multi-faceted, but they can all work together to lower risks and improve outcomes in the years ahead. For example, smartphone apps can provide education and tracking for food, alcohol and tobacco use, daily behaviors and more. By logging, monitoring and being mindful of these behaviors, people can begin to make positive changes.

Monitoring devices and wearable technology can also provide patients access to data such as blood pressure, weight, heart rate, blood sugar levels and more. If a health care provider has direct access to this information, they can provide advice and interventions in a timely fashion to prevent future problems.

And then there’s telemedicine, which has already increased access to health care for millions of people in Latin America and has the potential to help millions more. With the ability to access care and speak directly with a provider over their phone, it’s much easier for people in remote areas or with busy schedules to get the care they need without scheduling an in-office visit.

This is just the beginning of the opportunities for preventing chronic health diseases as technology continues to evolve. Medical equipment manufacturers are already beginning to make use of artificial intelligence to provide more accurate diagnoses and better treatments.

Key Takeaways for Health Care Companies

Despite the advances in government initiatives, as well as technology and treatments, there’s no question that public health issues such as obesity, diabetes, hypertension and more will continue to be part of the fabric of Latin American healthcare for many years to come. If you’re a medical supply, device or equipment provider in this market, then you have a unique opportunity to be part of the solution in the years ahead.

It’s clear that both regional governments and major health organizations are focused on the prevention and treatment of noncommunicable diseases, or NCDs. Any medication or technology that’s focused on the prevention, education, diagnosis or treatment of public health issues such as obesity or diseases such as diabetes or heart disease are sure to be of interest as countries continue to battle these issues and try to bring rates down.

Many organizations have also identified that access to quality care is another major issue in battling these NCDs. Any devices or technology that improve access to care, whether through wearable or monitoring technologies or telemedicine opportunities, should have an edge in the Latin American marketplace.

Next Steps

Contact GHI to learn more about healthcare trends and their potential impact on the pharmaceutical or medical device and equipment markets in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.

With all the emphasis on artificial intelligence and device advancements in recent years, it’s easy to lose sight of another major player in the healthcare marketplace — pharmaceuticals. But whether it’s innovations, the increasing availability of generic drugs, or regulatory changes to the markets, pharmaceuticals still play a significant role in the healthcare markets of not only Latin America but around the world.

With that in mind, it’s a good time to look at some of the most recent changes related to pharmaceuticals within the Latin American healthcare market, and how these changes might impact your business moving forward. Here, we’ll take a closer look at new regulations, new medications, and how it’s all impacting the global supply chain.

The Impact of Regulatory Changes

With the wide variety of disparate markets and varying regulations, one common complaint about Latin America is the difficulty for pharmaceutical manufacturers to navigate them all in order to do business in the region. Luckily, 2025 looks like it might be one of improvements for Latin American pharmaceutical regulations. Across the region, many countries are making efforts to speed up and streamline the process of pharmaceutical approvals. This should result in a better environment for companies trying to bring drugs to those markets.

In Brazil, for example, the Brazilian Health Regulatory Agency, ANVISA, began implementing a new resolution on January 21 to simplify the process of introducing biological products, including vaccines, radiopharmaceuticals and generic drugs. It also makes corrections, new indications, withdrawals and other processes around pharmaceuticals easier to navigate. To be eligible for this simplified process, companies must have at least one other drug or biological product already approved in the Brazilian market.

Other markets in Latin America, including the Dominican Republic and Colombia, have announced similar measures in recent months. In July 2024, Argentina announced several related measures to ease restrictions on pharmaceuticals, including measures to allow more generic drugs to enter the marketplace, easing barriers on the opening of new pharmacies, and allowing the sales of over-the-counter medications in businesses other than pharmacies.

Mexico has undergone similar efforts to promote clinical research and enhance access to generic and biosimilar medicines. Interestingly, Mexico’s efforts appear to be targeting not only local access, but also the availability of these medications in markets such as the United States. What this means for pharmaceutical manufacturers is potentially more friendly and open markets for new or generic versions of drugs in the years ahead.

The Rise of Generic Drugs in the Marketplace

Reading through those regulatory changes, it’s probably no surprise that biosimilars and generic drugs are on the rise in Latin America. As specialty medications have grown more expensive, the availability of more affordable generic alternatives has become critical for many people in the region who need them. The easing of regulatory restrictions in countries such as Brazil, Argentina, Colombia and more has made it easier to bring these drugs to market.

Generic drugs were already a core component of the Latin American healthcare market, with generics making up almost half of all Latin American pharmacy drug sales between 2015 and 2019. This upward trend is expected to continue in the years ahead, particularly with the easing of restrictions in the market. Take a look at the table below for projected increases in the upcoming years.

Latin American Generic & Biosimilar Sales

• Percent of all drug pharmacy sales made up by generics from 2015-2019: 45%
• Value of the LatAm biosimilars market in 2018: $517m
• Projected value of the LatAm biosimilars market in 2025: $3.9b
• Compound annual growth rate (CAGR) of the biosimilars market from 2018-2025: 33%
• Worldwide biosimilars market projection for 2032: $893b

Source: https://www.cambridge.org/core/journals/journal-of-law-medicine-and-ethics/article/pharmaceutical-market-for-biological-products-in-latin-america-a-comprehensive-analysis-of-regional-sales-data/6AE11D8A159BD46B0CA243A1BAC709A7

How Local Pharma Impacts the Global Supply Chain

As you can see from the table above, market forecasters are projecting nothing short of an explosion in generic and biosimilar sales in the years ahead. The projection is so large, in fact, that it could fundamentally change the role of smaller, local pharmaceutical companies in the overall marketplace, both in Latin America and globally.

Though major multinational companies own the most significant portion of the market share in Latin America, there are also almost 2,000 smaller pharmaceutical companies in the region. Couple this fact with the easing of restrictions on producing generic and biosimilar drugs in many regions across Latin America, and these smaller local companies are well-positioned to produce and sell generics and biosimilars in the region and beyond.

Across the region, you’re already beginning to see efforts to expand the production and availability of these drugs. In Brazil and Colombia, for example, initiatives are underway for local companies to begin producing generic, publicly available versions of popular drugs.

Key Takeaways for Health Care Companies

With the easing of restrictions and the efforts to improve access to generic and biosimilar drugs across the Latin American region, pharmaceutical manufacturers are well-positioned to take advantage of these regulatory and market changes in the months and years ahead.

If you’re a major multinational pharmaceutical company with a large market presence in the region, then you should continue to see growth due to the streamlined process that many countries are implementing to get drugs reviewed, approved and added to the marketplace. One interesting challenge for these larger manufacturers in the coming years may stem from increased competition, as more generic drugs and biosimilars from smaller manufacturers enter the market. Larger companies can stay ahead of the curve by staying agile and continuing to push for innovation in the pharmaceutical sector.

For smaller and regional pharmaceutical companies whose focus is primarily generic drugs or biosimilars, the recent regulatory changes should be nothing but good news for your bottom line. The market is open to these medications coming to market across Latin America, with fewer roadblocks to approval and access than ever before.

Next Steps

Contact GHI to learn more about healthcare trends and their potential impact on the pharmaceutical industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.