Brasil Pack Trends 2020

BrasilPackTrends2020 32 packaging market: world and Brazi l The decrease in the unemployment rate has also reflected on the increase of private health insurance plans, resulting, from 2003 to 2010, an increase of around 85% in the consumption of high cost pharmaceuticals. It is estimated that, from 2003 to 2010, the number of lives covered by private health insurance have jumped from 32 million to 46 million. Table 1.51 Pharmaceutical industry: main companies by income Company Control Type Income (US$ MM) Pfizer American Private 2,160.7 Novartis Swiss Private 1,949.7 Sanofi French Private 1,900 Roche Swiss Private 1,884.3 Medley French Private 1,607.7 AstraZeneca Anglo-Swedish Private 1,088.9 EMS Brazilian Private 903.6 Eurofarma Brazilian Private 839.8 Aché Brazilian Private 823.9 Merck German Private 576.9 Source: DATAMARK, PORTAL FARMACÊUTICO, 2012, FÓRUM DE LÍDERES, s.d. The economic development has also caused changes in the most consumed generic pharmaceuticals in Brazil. Painkillers and antibiotics, even though they are considered the main pharmaceuticals in sales volume, they begin to lose out to products aimed at treatments of more complex diseases, such as sildenafil citrate, Viagra’s active principle (erectile dysfunction treatment), that in 2011, became the 4 th most consumed pharmaceutical in Brazil in value. Other pharmaceuticals that treat high blood pressure, heart conditions, cholesterol and even cancer may beat the top of that ranking as pharmaceutical patents expire. The consolidation of major pharmacies is another important trend that reflects the growth potential of the sector in Brazil. In 2011, Raia and Drogasil and Pacheco and São Paulo chains announced mergers, creating the largest groups in the sector, with sales above R$ 4 billion. The process will continue, since many regional chains are being targeted for acquisition by the majors, mainly because the pharmaceutical market in Brazil is very fragmented. There are more than 60,000 pharmacies in the country, with the four leaders having only 25% share versus 60% share of the four biggest chains in USA. Thus, there is plenty of space to grow. That segment should increase packaging consumption, with average rates of 5.6% a year, in value (US$ million), and 5.6% in volume (tonnes), between 2011 and 2015. Metals, plastics, paper and paperboard packaging should show the highest growth rates ( Tables 1.52, 1.53 and 1.54 ). Table 1.52 Historical trends and projections for packaging consumption for healthcare: Value Material US$ million 2007 US$ million 2011 Average growth 2007-2011 US$ million 2015* Average growth 2011-2015* Corrugated board 84.4 165.0 18.3% 203.4 5.4% Paper and board 72.2 143.3 18.7% 178.0 5.6% Glass 82.9 129.0 11.7% 160.3 5.6% Flexibles 69.9 114.0 13.0% 141.5 5.6% Plastics 50.2 92.1 16.4% 114.4 5.6% Metals 5.1 16.9 34.7% 21.0 5.6% TOTAL 125 223 15.5% 277 5.6% *Estimate Source: DATAMARK