South America Diabetes Drug Market Outlook, 2030

The South American diabetes drug market is experiencing steady growth driven by the increasing prevalence of type 2 diabetes, expanding healthcare access, and the growing adoption of innovative therapies. The rising incidence of diabetes, particularly type 2 which accounts for over 90% of cases, is primarily linked to urbanization, sedentary lifestyles, and a growing obesity crisis especially in countries like Brazil and Argentina where adult obesity rates are climbing steadily. Brazil is the largest market in the region, fueled by a strong public healthcare system (SUS) that offers free access to essential diabetes medications, including insulin and oral antidiabetics.

Moreover, with the expected patent expiry of semaglutide in Brazil by 2026, companies like Hypera and Biomm are preparing to launch biosimilar or generic versions, which will significantly boost the availability and affordability of these advanced therapies. Digital health is another critical area of innovation, with growing investments in telemedicine, smart insulin pens, mobile applications, and continuous glucose monitoring devices, especially in urban centers. The region faces several challenges, including disparities in healthcare access between urban and rural areas, limited insurance coverage for newer drugs, and high out-of-pocket costs for many patients.

Regulatory frameworks vary by country but are gradually evolving to support faster drug approvals and encourage public-private partnerships for drug distribution. Government programs like Brazil’s “Health Has No Price” initiative play a crucial role in ensuring equitable access, while legal actions in some countries have even mandated access to expensive biologics. As awareness of diabetes management grows and innovative therapies become more affordable, the South American market holds substantial potential.

According to the research report "South America Diabetes Drug Market Outlook, 2030," the South America Diabetes Drug market was valued at more than USD 4.70 Billion in 2024. The urbanization rate which now exceeds 83% across the region has also contributed to the increased consumption of processed foods and sugary beverages, pushing obesity rates to concerning levels. For instance, in Brazil, nearly 60% of adults are overweight or obese, creating a fertile ground for metabolic disorders like diabetes. Another factor is the increasing awareness and early diagnosis of diabetes, which is driven by health campaigns and community-based screening programs.

This early detection is boosting the demand for both oral and injectable antidiabetic medications, especially in middle-income groups who now prioritize disease management over emergency treatment. Furthermore, healthcare infrastructure improvements have supported the market’s expansion. Several South American governments have ramped up investments in public healthcare systems, leading to wider access to treatment, especially in the form of subsidized or free medication through public initiatives. Suganon (evogliptin), a new treatment for people with type 2 diabetes, is being introduced in Latin America thanks to Brazilian invention.

Suganon® (evogliptin) is a brand-new DPP-4 enzyme inhibitor with the advantages of simple administration and a minimal risk of drug interactions, providing prescribers and type 2 diabetic patients with more convenience and safety. In 10 national research sites located in the North, Northeast, Southeast, and Distrito Federal regions, the novel oral medication was specially studied in the Brazilian population, demonstrating effectiveness (average reduction of HbA1c more than 1) in glycemic management.

In Brazil, for example, government-backed programs provide insulin and metformin at zero cost in public health units, resulting in increased medication adherence. A growing middle-class population and rise in private healthcare access are also encouraging the uptake of premium and advanced drug therapies like GLP-1 receptor agonists and SGLT2 inhibitors, which were once considered cost-prohibitive for the average patient.

Market Drivers

• Increasing Urbanization and Lifestyle-Related Risk Factors: A major driver of the diabetes drug market in South America is the rise in urbanization and associated lifestyle changes leading to an increased prevalence of Type 2 diabetes. As more people shift from rural to urban living, dietary habits tend to become more reliant on processed and high-calorie foods, while physical activity often declines. Coupled with a growing obesity epidemic and high rates of hypertension, these factors contribute significantly to the surge in diabetes cases.
• Expanding Healthcare Access and Government Health Programs: South American governments have been gradually improving public healthcare systems, increasing access to essential medications, including diabetes drugs. Programs like Brazil’s Farmácia Popular, which subsidizes or offers free essential medications, including insulin and oral antidiabetic drugs, have been instrumental in ensuring wider access. Additionally, international partnerships and NGO support are helping strengthen diabetes screening, education, and treatment initiatives.

Market Challenges

• Economic Instability and Limited Healthcare Funding: A critical challenge facing the South American diabetes drug market is the economic instability that affects both public and private healthcare sectors. Fluctuations in national economies often lead to inconsistent funding for public health programs and hinder the procurement of modern and high-cost diabetes treatments. In many lower-income populations, out-of-pocket costs remain a barrier, leading to poor treatment compliance or complete lack of access. This economic vulnerability creates uneven drug availability and poses a significant obstacle for pharmaceutical companies trying to expand in the region.
• Low Diagnosis and Underreporting of Diabetes Cases: Despite rising prevalence, a significant proportion of diabetes cases in South America remain undiagnosed due to inadequate screening programs, especially in rural and underserved areas. Lack of awareness, cultural stigma, and limited access to regular medical check-ups contribute to delayed diagnosis and treatment. This underreporting not only affects the true estimation of market demand but also results in many individuals missing early intervention opportunities. Consequently, the need for improved diagnostic infrastructure and awareness campaigns is critical for unlocking the full potential of the diabetes drug market in the region.

Market Trends

• Growing Use of Generic and Biosimilar Diabetes Medications: A key trend in the South American market is the growing reliance on generic and biosimilar versions of diabetes drugs to manage treatment costs. Governments and healthcare providers are increasingly promoting cost-effective alternatives to brand-name insulin and oral hypoglycemics to expand access. Countries like Brazil and Colombia are adopting policies that favor generics to meet the rising demand without overburdening public budgets. This shift is encouraging domestic pharmaceutical manufacturing and creating competitive pricing, which is expected to further drive market expansion in cost-sensitive environments.
• Telemedicine and Digital Health Expansion in Diabetes Care: The adoption of digital healthcare tools and telemedicine platforms is rapidly emerging in South America, particularly after the COVID-19 pandemic highlighted their value. In the diabetes segment, mobile apps for glucose tracking, remote consultations, and digital prescription services are becoming more common, especially in urban centers. These technologies enable better patient monitoring, support medication adherence, and provide continuous care even in regions with limited physical healthcare infrastructure. This trend is helping bridge healthcare access gaps and modernizes diabetes management across the continent.

The moderate growth of SGLT2 inhibitors in the South America diabetes drug industry is primarily driven by increasing awareness of their cardiovascular and renal benefits, despite economic and accessibility constraints.

Sodium-glucose cotransporter-2 (SGLT2) inhibitors are experiencing moderate growth in the South America diabetes drug industry due to a growing body of clinical evidence highlighting their multifaceted benefits beyond glycemic control, particularly in cardiovascular and renal protection. In a region with a high burden of type 2 diabetes and its associated complications, these advantages are becoming increasingly important to healthcare providers seeking comprehensive treatment options. Physicians are gradually adopting SGLT2 inhibitors as part of a more holistic approach to diabetes management, especially among patients with coexisting heart failure or chronic kidney disease.

The awareness is being propelled by global guidelines such as those from the American Diabetes Association (ADA) and European Association for the Study of Diabetes (EASD), which is influencing clinical practices in South America as well. Moreover, the expansion of continuous medical education and international collaboration has helped improve understanding among practitioners about the long-term value of these drugs. However, despite their recognized efficacy, the growth of SGLT2 inhibitors remains moderate rather than rapid, due to systemic barriers such as the high cost of therapy, limited reimbursement mechanisms, and disparities in healthcare access across urban and rural regions.

In countries like Brazil, Argentina, and Colombia, healthcare systems are fragmented, and many patients rely on public healthcare institutions that are slow to adopt newer and costlier treatments into their formularies. Additionally, there is a lack of widespread awareness at the patient level, often leading to poor demand for newer therapies unless specifically recommended by physicians.

Type 2 diabetes is the largest segment in the South America diabetes drug industry due to the region’s high prevalence of obesity, sedentary lifestyles, and rapid urbanization, which are major risk factors for the disease.

Type 2 diabetes dominates the South America diabetes drug industry primarily because of the region’s escalating rates of obesity, poor dietary habits, and physical inactivity, all of which are key contributors to the onset of the disease. In recent decades, South American countries have experienced significant lifestyle and demographic transitions marked by increased urbanization, rising middle-class populations, and a shift from traditional diets toward highly processed, calorie-dense foods. These changes have led to a dramatic rise in overweight and obesity rates, which now affect a substantial portion of the adult population, especially in countries like Brazil, Argentina, and Chile.

Sedentary behavior has also become more common, with urban dwellers engaging less in physical labor and exercise, further compounding the risk factors. Moreover, limited public awareness about diabetes prevention, coupled with insufficient health education and screening programs, has led to a large population of undiagnosed or poorly managed type 2 diabetes cases. The aging population in South America also contributes to the growing prevalence, as type 2 diabetes risk increases with age. Socioeconomic disparities further exacerbate the problem many low-income communities lack access to nutritious food, preventive healthcare, and regular medical checkups, making them more vulnerable to chronic diseases.

Consequently, the demand for medications to manage type 2 diabetes, such as metformin, sulfonylureas, DPP-4 inhibitors, and increasingly SGLT2 inhibitors and GLP-1 receptor agonists, continues to grow. Governments and health agencies in the region are beginning to prioritize diabetes as a public health issue, which has resulted in more structured drug procurement programs and greater availability of diabetes medications, especially in public healthcare settings.

The subcutaneous route of administration is moderately growing in the South America diabetes drug industry due to increasing adoption of advanced injectable therapies like insulin analogs and GLP-1 receptor agonists, despite infrastructural and affordability limitations.

In South America, the subcutaneous route of administration is witnessing moderate growth within the diabetes drug industry as more patients and healthcare providers embrace modern injectable therapies such as insulin analogs and GLP-1 receptor agonists for better glycemic control and overall disease management. This growth is largely supported by the increasing prevalence of both type 1 and type 2 diabetes, particularly the rise in complex cases requiring intensive treatment regimens beyond oral medications. Subcutaneous injections provide a reliable and effective way to deliver insulin and other peptide-based drugs that are not viable through the oral route due to degradation in the gastrointestinal tract.

In recent years, there has been a gradual shift from older human insulins to next-generation analogs that offer improved pharmacokinetics, greater dosing flexibility, and lower risk of hypoglycemia, which has increased acceptance among patients and physicians. Additionally, GLP-1 receptor agonists, administered via subcutaneous injection, are gaining attention for their dual benefits in lowering blood glucose and promoting weight loss, a critical factor in managing type 2 diabetes in obese patients.

Multinational pharmaceutical companies have introduced user-friendly pen devices and once-weekly formulations, which help mitigate injection-related anxiety and improve adherence. However, despite these advancements, the overall growth of the subcutaneous segment remains moderate due to several barriers. The cost of injectable therapies is significantly higher than oral medications, making them less accessible to a large portion of the population, especially in lower-income and rural areas.

Online pharmacies are the fastest-growing segment in the South America diabetes drug industry due to increasing internet penetration, convenience of home delivery, and rising demand for affordable and accessible medication options.

The rapid growth of online pharmacies in the South American diabetes drug industry is being driven by a combination of digital transformation, increasing smartphone and internet penetration, and the growing need for accessible, convenient, and cost-effective healthcare solutions. As urban and semi-urban populations across countries like Brazil, Argentina, Chile, and Colombia become more digitally connected, consumers are turning to e-commerce platforms for their medical needs, including diabetes medications and supplies.

The shift has been further accelerated by the COVID-19 pandemic, which normalized telemedicine and digital health services, prompting patients especially those with chronic conditions like diabetes to seek safer alternatives to in-person pharmacy visits. Online pharmacies offer a significant advantage by eliminating geographical barriers and long wait times, providing home delivery of essential drugs such as metformin, insulin, and newer therapies like DPP-4 and SGLT2 inhibitors. Additionally, the ability to compare prices, access discounts, and subscribe for monthly refills is particularly appealing in a region where out-of-pocket health expenditures are high and public healthcare coverage can be inconsistent.

For diabetic patients who require long-term medication, these digital services offer cost-saving opportunities and reduce the burden of frequent pharmacy visits. Many platforms also include digital support tools such as medication reminders, health tips, and consultations with pharmacists, further enhancing adherence and patient engagement. Start-ups and large pharmacy chains alike are investing in logistics, warehousing, and customer service to improve the speed and reliability of deliveries, even to remote areas.

Brazil is leading the South American diabetes drug industry due to its high and growing diabetes prevalence, supported by government-funded healthcare programs and expanding access to modern treatments.

With one of the largest populations in the region, Brazil has witnessed a significant increase in type 2 diabetes cases, driven by rapid urbanization, lifestyle changes, and rising obesity rates. The adoption of sedentary habits, increasing consumption of processed and high-sugar foods, and limited physical activity especially in urban centers have created a public health challenge that continues to escalate. In response, Brazil’s government has made diabetes a national health priority. Through its Unified Health System (SUS), the country provides essential diabetes medications, such as insulin and metformin, free of charge at public health units and designated pharmacies.

This wide-reaching public healthcare support plays a key role in making treatments accessible, even in underserved and rural communities. Brazil also supports programs for early diagnosis, diabetes education, and self-management, which have increased the identification of new cases and consequently, the demand for treatment. Moreover, Brazil has a growing pharmaceutical industry that both manufactures generic drugs and partners with global companies to bring advanced therapies into the local market.

The regulatory environment has become more streamlined in recent years, allowing faster approvals for newer classes of diabetes drugs, including DPP-4 inhibitors and SGLT2 inhibitors, thereby enhancing treatment options. Brazil also serves as a regional center for clinical research and trials, contributing to global drug development efforts while simultaneously benefiting from early access to innovations. Public awareness campaigns and digital health initiatives have further improved treatment adherence and patient monitoring.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Diabetic Drug Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Drug Class

• Insulin
• GLP-1 Receptor Agonists
• DPP-4 Inhibitors
• SGLT2 Inhibitors
• Others (metformin, sulfonylureas, and combination therapies)

By Diabetes

• Type-1
• Type-2

By Route of Administration

• Oral
• Subcutaneous
• Intravenous

By Distribution Channel

• Hospital Pharmacies
• Retail pharmacies
• Online Pharmacies

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.