How inflation will impact Brazil’s IVD market

Brazil’s in-vitro diagnostics (IVD) market will recover in the 2023 to 2026 period and grow slightly at an average of under 1% per year, reversing the market contraction experienced in the pandemic years. The market focus will expand beyond routine tests and increasingly drive the uptake of preventive tests, such as next-generation sequencing (NGS) tests for cancer and infectious diseases.  

The impact of inflation on the IVD market   

Healthcare spending in Brazil is expected to be on a long-term upward trend from 2023, with an expected 9.9% of GDP by 2023-2024 to 12.6% of GDP by 2040. However, high inflation means that, in real terms, healthcare spending growth will average at under 1% per year in 2023-27.

Inflation and supply-chain challenges have increased costs on the production and prices of IVD equipment and reagents. Inflation pressures will continue to be a key challenge to growth in Brazil’s IVD market with rising inflation negatively impacting purchasing power and healthcare budget allocation.  Clearstate expects inflationary pressures to dampen growth in 2023 with higher prices resulting in lower demand for tests purchased by the federal and subnational governments.

What is the size of Brazil’s IVD market? 

Brazil’s IVD market is estimated to be valued at US $1.1bn in 2022.

Essential 2023-2026 insights into Brazil’s IVD market:

  • The period of 2023 to 2024 is expected to be a critical period of post-pandemic recovery with the Brazil IVD market projected to decline in 2023 after a slowdown since the covid-19 pandemic in 2020, before climbing back onto its growth trajectory from 2025 onwards.
  • Brazil’s centralised diagnostic (CEDx) market is set to recover, with central laboratories looking to drive greater adoption of automation to reduce the costs of running tests.
  • Point-of-care testing (POCT) market is expected to contract during this period due to the scaling back of covid-19 testing. However, there is strong growth in other test areas outside of covid-19 testing. Tests for infectious diseases such as hepatitis, in particular, HCV and sexually transmitted diseases (STDs) will be the fastest growing segment within POC and across the country’s IVD market. POC testing trends include self-tests and all-in-one devices which support a broad menu of tests on a single platform.
  • The molecular diagnostics (MDx) market is expected to contract by about 3% annually on average from 2023 to 2026 as the country scales back on covid-19 testing. Outside of covid-19 testing, market segments such as cancer biomarker tests are expected to grow strongly in this period. 
  • The tissue diagnostics (TDx) market is set to grow by almost 10% annually on average in the same period. Advanced staining equipment and reagents will be the fastest growing segment within TDx.
  • The next-generation sequencing (NGS) market is also expected to grow by more than 10% annually on average in the same period.

Brazil IVD Segment Trend Report

The IVD Segment Trend Report provides insights into the demand and supply shaping IVD market and the specific drivers impacting growth in the major test segments— ie. Centralised Diagnostics, Molecular Diagnostics, Point-of-Care Testing and Tissue Diagnostics.