Brazil 4 Business

Chemical and pharmaceutical industry

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 Globally, Brazil has the 6th largest chemical market and in the last 20 years, the industry is growing at rates of over 7% per annum, representing approximately 3% of total GDP, or 10% of all the transformation industry.

Graphic - Participation of sub-sectors of the chemical industry in Brazil - 2013 Among all the chemicals sold, the category of chemical products for industrial use is the most representative, and its growth is very much in line with the sector. 

In the domestic market, products that account for over 70% of the group are:

  • Basic Petrochemicals;
  • Thermoplastic resins;
  • Products and various chemical preparations;
  • Other Organic Chemical products

The majority of producers are in the South-eastern region, close to the largest industrial parks in the country.

Pharmaceutical products come in second place, since the Brazilian market is the 6th largest in the world. In the country, revenue is concentrated, in such a way that classes B and C are responsible for over 80% of revenues (public of more than 120 million people). Much of the growth in recent years came from membership and popularity of generic and similar medicines through the law project in 1999. The Federal Government provides incentives for innovation in the pharmaceutical sector through credits with easy payment policies.
Brazil's primary competitive differential is the presence of the greatest biodiversity in the world, promoting the development of new products, followed by obtaining patents. 

Fertilizers are important to be highlighted and the current agriculture and productivity gains are quite associated with each other. The imported volume is almost 3 times greater than that produced nationally.

Graphic - Participation of medication classes on the market - 2014 Personal hygiene, perfumes and cosmetics products are seen as one of the main target groups of the emerging classes. Brazil is in a positive promotion momentum for the families from the lower classes to the middle. In other words, this public increases year by year.

The category of pesticides is the fastest growing in the industry, with over 11% per year in recent times. The development of agricultural productivity is fully connected to the performance of this class of products. The good performance is not only linked to the size of the national agricultural production. Company that manufactures various types of pesticides has constant orders over the years since climate changes, which are one of the main factors influencing the harvested volume, also imply different types of problems or pests, requesting different types of pesticides. Opportunities exist with respect to the reverse logistics of packaging. 


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