About Brazil

A Massive Opportunity

Brazil is the third largest private healthcare market in the world, behind only the US and China. The Brazilian healthcare market is estimated at $120 billion, with a 10-year historical growth rate of almost 20%, and is expected to continue growing rapidly due to demographics. Driving that growth are Brazil’s baby boomers aged 65+, whose population has been growing three times faster than in the US. Because of this, and despite economic woes and recession in the country, healthcare spending has been protected and is one of the rare retail areas with growth.

Market Segmentation


Across the medical devices and diagnostics landscape in Brazil (and other emerging markets), less than 50% of the market is composed of hundreds of premium customers being called upon by dozens of multinationals. These customers are less price sensitive and demand the latest, most innovative products. It is in this segment that the early adopters, key opinion leaders and high end institutions reside.

In contrast, more than 50% of the market is made up of thousands of value-oriented, or “long tail,” customers who typically value high-quality, more affordable solutions. These customers address the needs of the overwhelming majority of the population who have more modest purchasing power and limited healthcare coverage, if any. This segment is often neglected in Brazil, creating in that vacuum thousands of regional, family-owned distributors and local manufacturers that cater to this segment.

Our portfolio and commercial platform has been built to serve the needs of these two important segments.

A Complex Environment


Like many emerging markets, Brazil does not function with the discipline of the US or other developed countries. The challenges are many. Regulations are constantly changing. Quality is inconsistent. Ethical lapses are frequent. Shipping and inventory disruption is common due to customs delays and strikes. “Mom and pop” distributors know the market, but language issues, loose compliance with company marketing and standards, and customer financing can be problematic.

Despite the opportunity, it is too difficult for all but the largest companies with deep pockets and much patience to establish their own presence in Brazil. Adavium Medical helps companies of all sizes.

Source: World Development Indicators: July 1, 2015 (2013 GDP USD)

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