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General Overview of the Pharmaceutical Industry in Central America
Feb 25, 2025
The pharmaceutical industry in Central America plays a key role in the healthcare system and the region's economic development. With a constantly growing market, this sector supplies both public and private healthcare systems, offering a variety of essential medicines and healthcare products.
Size and Growth of the Sector
Central America has experienced significant growth in its pharmaceutical industry in recent decades. Factors such as population growth, increased awareness of healthcare, and the modernization of healthcare systems have driven the demand for medicines. Additionally, the expansion of regional trade and free trade agreements have facilitated the distribution and commercialization of pharmaceutical products in the area.
Key Players
The sector comprises a combination of multinational companies and local laboratories. Renowned pharmaceutical companies have established operations in the region, importing and manufacturing medicines to supply the local market. On the other hand, Central American laboratories have strengthened their presence by producing generics and other high-demand drugs. Among the countries with the most developed industries are Costa Rica, Guatemala, and El Salvador, which have important production and distribution centers.
Regulations and Standards
Each Central American country has its own regulatory framework for the pharmaceutical industry, supervised by government institutions that ensure the quality, safety, and efficacy of medicines. In recent years, efforts have been made to harmonize regulations at a regional level to facilitate trade and streamline sanitary registration processes. The adoption of international standards has been key to strengthening the sector's competitiveness and improving access to quality medicines.
Economic Data
Pharmaceutical Exports:
Between 2017 and 2021, pharmaceutical exports from Central America increased from $501.4 million to $648.6 million, representing a 29.3% growth.
In the same period, intra-regional exports grew from $417.9 million to $522.9 million, showing a positive evolution of 25.1%.
Performance by Country:
Guatemala: Leads the region's pharmaceutical exports. Between 2017 and 2021, total exports increased from $208.1 million to $304.1 million, a 46.1% rise. Over 86% of these exports were destined for the intra-regional market.
El Salvador: Recorded a 54.4% increase in total pharmaceutical exports, from $118.8 million in 2017 to $183.5 million in 2021. Between 53.4% and 83.2% of these exports went to the intra-regional market.
Costa Rica: Unlike its neighbors, it experienced a decline in total pharmaceutical exports, from $159.3 million in 2017 to $110.2 million in 2021. However, between 73.9% and 78.3% of these exports were directed to the intra-regional market.
Healthcare Investment:
In 2022, the Costa Rican government invested $3.475 billion in the healthcare sector, representing 26.91% of total public expenditure.
Regional Economic Impact:
In 2019, the annual gross value added by the pharmaceutical industry in Latin America reached $21 billion, generating an additional $16 billion in the rest of the regional economy.
Between 2013 and 2019, the pharmaceutical industry contributed to economic growth in Latin America and the Caribbean by creating nearly 700,000 jobs, of which 38% were direct and 62% were indirect or induced.
Pharmaceutical Imports
Imports by Country:
Guatemala: In 2022, Guatemala imported pharmaceutical products worth $598 million, ranking as the 65th largest importer of these products worldwide. The main countries of origin for these imports were India ($104 million), Spain ($64.2 million), Mexico ($59.8 million), Germany ($54.4 million), and the United States ($50.3 million).
Honduras: In the same year, Honduras imported pharmaceutical products worth $350 million, ranking as the 106th largest global importer in this category. The main suppliers were Guatemala ($87.9 million), Belgium ($45.7 million), El Salvador ($39.2 million), Costa Rica ($37.2 million), and India ($30.9 million).
El Salvador: In 2021, El Salvador imported pharmaceutical products totaling $621 million. The main countries of origin for these imports were the United States, Mexico, and other unspecified sources.
Imports from Mexico:
In 2022, pharmaceutical product purchases from Mexico to Central America reached $360 million, with Guatemala being the region's largest importer.
These data reflect Central America's reliance on pharmaceutical imports, as well as the diversity of supplier countries that supply the regional market.
In conclusion, the pharmaceutical industry in Central America is an expanding sector, with a growing participation of local and international players. Despite regulatory and technological access challenges, the market continues to evolve and consolidate itself as a fundamental pillar for the region's health and economy.
SOURCES
https://oec.world/es/profile/bilateral-product/packaged-medicaments
https://www.cancilleria.gob.ar/es/el-salvador
https://www.saludyfarmacos.org/lang/es/boletin-farmacos/boletines/nov202202/49_in/
