Frost: Low Distribution Costs Spur Latin American Infectious Disease Test Kits Market

July 24, 2006

With accuracy levels improving and the introduction of new players in the competitive landscape, rapid tests for infectious diseases are beginning to overcome initial resistance. According to Frost & Sullivan, emerging players have the ability to potentially increase the addressable market and product awareness.

Recent analysis from Frost & Sullivan found that the Latin American rapid tests for infectious diseases market earned revenues of $28M in 2005, with estimates to reach $40M in 2010.

"The ability of new rapid tests to be dispersed at fractionally low cost across large distances makes it an especially attractive market for the Latin American region," said Frost & Sullivan research analyst Natalia Scomparin.

Analysts said expected growth of this market in Latin America is triggered by the kind of geographical and health care infrastructure encountered in most of these countries. Two key factors propelling the expected growth of this market are lack of basic infrastructure conditions needed to perform traditional testing and higher levels of accuracy from rapid tests technologies.

"Lack of promotion of these techniques, together with yet unexplored potential market users are two avenues to closely consider when targeting growth objectives among this category," said Scomparin.

As the market reaches a more mature level of development, analysts said new Tier 1 entrants expect to use a combination of price and niche product strategy to reach the higher end of the potential addressable market size in the medium and long term.

Source: Frost & Sullivan.