|Market Spotlight: Peru|
This month’s “Spotlight” focuses on Peru
Peru fueled by strong economic growth, and a pro-investment government led by newly-elected President Pedro Pablo Kuczynski, the Ministry of Health (MINSA- Ministerio de Salud) expects the country to reach universal health coverage by 2021.
Peru is the eighth most populous country in the Americas region with a population of 30.7 million inhabitants and an average life expectancy of 73.7 years. About 2.1 million people, or 6.8% of the total population, in Peru, are 65 or older. There is a demand for quality elder care and treatment for cancer, cardiovascular diseases, and diabetes. In addition, the rising middle class in and around Lima has led to an increase in the urban population with higher expectations from their healthcare providers and who are willing to pay for it.
Since the U.S.-Peru Trade Promotion Agreement (PTPA) came into force in 2009, the majority of medical devices/equipment and pharmaceuticals enter Peru duty-free, provided a U.S. certificate of origin is presented to Peruvian customs.
U.S. companies must register their products in Peru by partnering with a local distributor who has the ability to register through the Dirección General de Medicamentos, Drogas e Insumos (DIGEMID). Aside from obligatory registration, working with a local distributor is beneficial due to Peruvian preferences to buy locally from someone who can provide after-sales services. U.S. manufacturers should maintain close contact with end-users and provide training and demonstrations so that they can familiarize themselves with the equipment.
To succeed in the Peruvian market, U.S. firms should offer competitive pricing. Modern technology with strong post-sales technical and parts support is well received. All marketing materials and product information should be provided in Spanish.