Healthcare Market

Brazil is the largest medical equipment market in South America and it is expected to recover from recent retraction (2015 and 2016) soon.

Medical equipment revenues in 2014 reached an estimated US$ 7.0 billion, representing an increase of 9.4 % from the previous year in local currency. According to the World Bank, in 2014 private and public healthcare expenses in Brazil were US$ 195.7 billion, corresponding 8.1% of the GDP.

The United States accounts for approximately 30% of the import market.  In 2015, imports of medical products and devices were US$ 5.1 billion, with a retraction of 13.7% from the previous year. As an exception, dental products presented increase of 10.6% in imports and imaging diagnostics 32.4%.

In general, the segmentation of the market for medical equipment and devices is:

• Reagents for In Vitro Diagnostic 20%;
• Materials and Consumables 19%;
• Prosthesis, Implants and Parts 15%;
• Lab equipment 14%;
• Imaging equipment and consumable 8%;
• Dental Equipment 3%;
• Furniture 2%;
• Other 19%.

Market Entry

For medical products, foreign medical equipment/devices suppliers must establish a local office or assign an agent or distributor to sell in Brazil. Due mainly to regional economic disparities, varying states of infrastructure, it is often difficult to find one distributor that has complete national coverage. Main cities are São Paulo, Rio de Janeiro, Belo Horizonte, Brasília, Porto Alegre, Salvador, Recife and Curitiba.

Either setting up a company in Brazil or acquiring an existing entity can be a relatively complex option for Brazil, although the Ministry of Development has signaled intention for simplified process.

Companies are also joint venturing with Brazilian industries for final assembling and packaging of products. For some industries, this option can reduces import duties and documentations that are required for finished goods. In addition to that, Brazilian Government is offering margins of preference in the public purchase of medical products for local made products.

Current Market Trends

Despite Brazil’s recently economic downturn, private and public hospitals still have great purchasing power, and with continued expansion of Brazil’s private health care sector, the market should grow.  New opportunities for US exporters abound, particularly for:

• Clinical Chemistry, Biomedical and advanced medical devices – high demand for new technologies;
• Laboratory equipment – investments in R&D, including some duties and registration exemptions;
• Disposables and surgical – high consume from private and public hospitals;
• Diagnostic devices and monitoring equipment – high demand for innovative products
• Orthopedics and Implants – high demand of imported products, despite higher sanitary requirements;
• Health IT – demand in hospitals, including education, telemedicine, big data and integration systems;
• Dental – Brazil has one of the highest number of dentists in the world;
• Drugs, Pharmaceuticals and Nutrition Supplements – high dependency on imported products.

Main Competitors

There are few high-quality Brazilian manufacturers of advanced medical products so Brazil’s reliance on imports should continue for some time.  Local buyers view US and other foreign products (mainly Canadian and European) as having comparable quality and reliability.  Thus, financing terms often become the differentiating criteria in making a sale.

Current Demand

The market for home health care products has been increasing in two digits every year and is estimated in US$ 1,3 billion. Brazilian health insurance companies are responsible for paying 90% of the costs related to home care treatment.
US exporters should consider the opportunities offered by Mercosur, and use Brazil as a “spring board” for export into Argentina, Uruguay and Paraguay.  Since compulsory product registration before sale is required for all of Mercosur countries, US exporters should consult a local lawyer/consultant before signing a contract with any agent/distributor.

Barriers

Medical products in Brazil are regulated by Anvisa, the Brazilian counterpart of FDA. All products must be registered or notified in order to obtain sales licenses. For products with higher grade risk (class III or IV) or considered strategic for the public system, it may be necessary to have additional local certifications for electric components, economic market data from other countries and inspections in manufacturing plants (GMP).

Import system is very complex and can add up to 100% fees over products. For a more detailed explanation about how to do business in Brazil: https://export.gov/brazil/doingbusinessinbrazil/index.asp