With growth in pharmaceutical revenues flat in the United States and Europe, pharmaceutical firms are increasingly looking to emerging markets as a growth strategy. Countries such as Brazil, China, India, and Mexico offer plenty of opportunity for pharmaceutical companies. China’s pharmaceutical market is expected to grow to $150 billion in 2020 and $210 billion in 2025, a growth rate that approaches ten percent each year. By comparison, the pharmaceutical market in the United States is expected to grow between two and five percent each year to 2021.
The rapid growth of emerging pharmaceutical markets comes with its own set of challenges, however. Pharmaceutical companies, which often grow through acquisition, have a tendency to “get out over their skis” in emerging markets, with sales outstripping the ability of security and business continuity teams to catch up to the risks the firm is now exposing themselves to. Unfortunately, emerging markets are often fraught with cargo theft risk. Brazil and Mexico are among the most dangerous countries in the world for cargo theft, and the complexity and scale of cargo theft, diversion, and counterfeiting operations in China and India is increasingly rapidly.