Overview
Peru is the eighth-most populous country in the Americas, with a population of 34 million and an average life expectancy of 77.4 years. The government continues to strive for an advanced health sector and medical services have improved in tandem with Peru’s development over the past two decades. However, wide coverage disparity remains between Lima and the country’s rural regions. Peru’s 2023 budget included $6.7 billion for the health sector, an eight percent increase from 2022. Priorities include improving hospital and primary care capacity, cancer prevention, child vaccination, and mental health. Following a temporary boost in spending due to COVID-19, spending growth has been slowing lately and will likely continue to do so should the pandemic continues to abate.
Peru’s healthcare sector is a mix of public and private entities but remains concentrated in the public sector. The Ministry of Health (MINSA) serves 60 percent of Peruvians through a network of public hospitals and clinics, as well as offers Seguro Integral de Salud (SIS), publicly funded insurance. EsSalud, the national social security program, serves 30 percent and in the last few years has inaugurated two public-private partnership hospitals to expand service. The remaining 10 percent of the population obtains coverage through either the Armed Forces, National Police, or the private sector. The Superintendency of National Health acts as the industry’s supervisory and regulatory body.
Opportunities
Peru’s healthcare sector faces challenges such as a lack of access and coordination. However, opportunities exist for improvement through both public and private initiatives. A growing middle class is increasingly using private healthcare with higher expectations, while an aging population, with more than 4 million aged 65 or older, needs more treatment for chronic diseases, creating opportunities for investment. The government is working to implement universal healthcare, improve prevention and coordination, invest in hospital infrastructure, and expand telemedicine. Although more progress is needed on digital health and internet access, teleconsultations have drastically increased in recent years, improving access. There are currently more than 2,700 health establishments incorporated in Peru’s National Telehealth Network.
Private companies see potential in specialized equipment as local manufacturing is limited. Lima will remain the most attractive area, as it has most of the best public and private medical facilities, targeting an urban population that has more disposable income. Under the PTPA, medical devices/equipment and pharmaceuticals enter Peru duty-free. The importer must present a U.S. certificate of origin and U.S. companies must register their products (via a local distributor) with the General Directorate of Drugs, Supplies and Medications/Dirección General de Medicamentos, Drogas e Insumos (DIGEMID). Furthermore, a sanitary registration and a local distributor/representative is generally required to sell medical equipment and devices.
To succeed in the Peruvian medical equipment market, U.S. providers should work with local distributors, maintain close contact with end-users for training and support, offer competitive pricing, provide modern technology with post-sales support, and have all marketing materials in Spanish. Local distributors can help U.S. firms sell to public and private hospitals that prefer to buy from local suppliers, while direct engagement with end-users ensures proper training and maintenance.
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
| Consumables | 110.9 | 119.6 | 126.8 | 134.9 | 142.4 | 149.5 |
| Diagnostic Imaging | 118.4 | 126.7 | 135.2 | 144.5 | 152.6 | 159.9 |
| Dental Products | 26.3 | 30.7 | 32.5 | 35.7 | 40.5 | 45.5 |
| Orthopaedics/Prosthetics | 31.5 | 38.5 | 42.0 | 46.1 | 50.0 | 53.7 |
| Patient Aids | 40.8 | 41.7 | 46.3 | 50.5 | 55.1 | 59.5 |
| Other Medical Devices | 145.6 | 156.5 | 168.1 | 180.7 | 192.2 | 203.0 |
| TOTAL | 473.5 | 513.7 | 550.8 | 592.5 | 632.8 | 671.2 |
Challenges
While improving healthcare is a top priority, Peru’s health system remains under-resourced, inefficient, and fragmented with one of the lowest health budgets in South America at just 3.6 percent of GDP. The country continues to suffer from a shortage of medical staff, specialists, and critical supplies, particularly in rural areas. Peru has only 14 health workers per 10,000 people and less than six ICU beds per 100,000 people. Peru’s total medical device market, while projected to grow, remains small compared to other countries in the region. Furthermore, as with many other sectors of the economy, public procurement can be arduous, complex, and lengthy. Therefore, U.S. suppliers would benefit significantly from working with a local partner or distributor.
Resources
Tecnosalud 2023 – Goods and services for the healthcare industry.
Sep. 7 – 9 2023
Jockey Plaza Convention Center
https://www.tecnosalud.com.pe/