The Role of Latin America in Global Vaccine Development & Distribution
By Mariana Romero Roy
The story of vaccines in Latin America in recent years goes down two distinct paths. On one hand, you have a region that struggled with the COVID-19 vaccination rollout in 2021 and now faces challenges with the childhood vaccination rates. On the other hand, you have areas that are ramping up vaccine development and turning the region into a global player in vaccine production.
How did we get here? Let’s take a closer look at the history of vaccines in the region, starting with the COVID-19 pandemic.
COVID-19 Vaccines in Latin America: A Look Back
Though COVID-19 had a dramatic effect on a global scale, the impact on Latin America was pronounced. The region experienced 25% of all COVID-19 cases worldwide, as well as 27% of deaths due to COVID-19.
Looking back at that time, it appears that several factors led to COVID-19’s outsized impact on the region, but one of them was certainly the slow rollout, adoption and acceptance of the COVID-19 vaccine. The reasons for the delays in vaccination varied across the region, from lack of supply in some regions to vaccine skepticism in other areas. But the bottom line is that vaccine administration across the region was slower and more uneven than many other parts of the world.
For example, a report from October 2021 noted that only 39 percent of the Latin American population at that time had been vaccinated. While some countries, such as Chile and Uruguay, had vaccination rates over 70 percent, other countries like Guatemala, Venezuela and Honduras were below 25 percent. While some of this is undoubtedly due to vaccine hesitancy, many countries were also fully reliant on donations to vaccinate their population, which made supply and inequity real issues, as well.
By 2023, Latin America had made up ground, with some countries exceeding a 90% full vaccination rate. However, other countries continue to fall short of the World Health Organization’s target of a 70% vaccination rate.
An Alarming Trend: Childhood Vaccination Rates in Latin America
Unfortunately, the COVID-19 pandemic was not the only recent vaccine-related challenge that Latin America has faced. Another alarming trend, notes UNICEF, is the declining rate of childhood vaccination in the region. From 2012 to 2021, Latin America has gone from having some of the highest childhood vaccination rates in the world to some of the lowest. You can view more details in the table below.
A Vaccine Success Story: Increasing Vaccine Production in the Region
Though the stories of COVID-19 vaccinations and childhood vaccination rates in Latin America clearly indicate that there is room for improvement, hope may be on the horizon. One of the clear lessons learned during the pandemic is that the region needs to be less reliant on vaccine imports.
While the COVID-19 pandemic was ongoing, only 15 percent of vaccines in Latin America were locally produced. Since then, many local governments and regional bodies with strong manufacturing bases have been making investments to expand their production capacity and produce more vaccines locally.
Some of these efforts are being driven forward by the Pan American Health Organization (PAHO) and their Special Program, Innovation and Regional Production Platform. The goal of this program, which was approved in September 2021, is to increase the production capacity for essential medicines and health technologies across Latin America. The Forum for the Project and Development of South America (PROSUR) is another organization that is pushing similar efforts forward.
These efforts are already beginning to pay dividends across the region. For example, in July 2024, the Brazilian vaccine manufacturer Bio-Manguinhos/Fiocruz joined CEPI’s network of vaccine manufacturers to help create faster and more equitable responses to future disease threats. This growth appears to be region-wide, with countries such as Mexico, Colombia, Chile and more expected to see growth in the vaccine market in upcoming years. You can find more data in the table below.
The Future of Vaccines in Latin America
Fueled by regional and local government efforts, the market trends certainly seem to be indicating that Latin America has learned some valuable lessons from the vaccine scarcity and inequity that occurred in the aftermath of the COVID-19 pandemic. More than that, many countries now seem mobilized to produce their own vaccines locally and lessen their reliance on imports in the years ahead.
Significant progress has already occurred, and, as the numbers above indicate, future growth is projected ahead. In fact, the Center for Global Development has already noted that many middle-income countries, including Brazil, have already become important players as global vaccine suppliers. As production continues to ramp up across the region, it’s possible that other countries could follow suit as important players in the global vaccine market.
Key Takeaways for Health Care Companies
When it comes to vaccines and any ancillary devices, equipment and supplies related to their administration, it’s clear that the Latin American focus region-wide is on scaling up production to both provide the needed vaccines locally, and perhaps even expand their market base both regionally and globally. Manufacturers and suppliers in the vaccine space can assist by focusing their efforts on products and initiatives that help local countries and companies achieve these goals
Next Steps
Contact GHI to learn more about healthcare trends and their potential impact on the vaccine industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.
