Mexico’s pharmaceutical market reached $19.8 billion in 2024 and is projected to reach $38.5 billion by 2033.

The value of the Mexican market was presented by the National Association of Drug Manufacturers (ANAFAM) to the U.S. government. This occurred as part of Section 301 investigations related to structural overcapacity and production in the manufacturing sectors. 

Mexico’s Pharmaceutical Market

According to ANAFAM, the growth of Mexico’s pharmaceutical market is driven by an aging population, the rising prevalence of chronic diseases, and government efforts to expand healthcare infrastructure. 

The factors driving demand—demographics and the burden of disease—are driving production, not the other way around. 

Consequently, the data suggest that Mexico faces a structural supply deficit. On the contrary, it does not face a production surplus. 

For example, ANAFAM indicated that the Mexican Social Security Institute (IMSS) was unable to fill more than 5.18 million prescriptions in 2024. This translates to more than 11.5 million units of medication not dispensed to beneficiaries in a single year. 

Shortages remain particularly severe in the case of antibiotics, anesthetics, and intensive care medications.

The IMSS is the government agency responsible for providing public health services to the population. It is also one of the leading purchasers of pharmaceutical products in Mexico, 

Purchasing of Medications

Meanwhile, the costs of medications for chronic conditions such as diabetes have risen by more than 6% year-over-year. The same is true for anti-inflammatory treatments. Furthermore, forecasts indicate that healthcare inflation in Mexico could reach 14.9% by 2025—above the regional average. Finally, more than 52% of out-of-pocket healthcare spending goes toward the purchase of medications.

The United States Trade Representative (USTR) is conducting investigations and will hold public hearings this week as part of the ongoing process.

China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India are the nations and trade blocs subject to the investigation.

In a letter, ANAFAM asked the USTR to include Mexico’s pharmaceutical and health products sector in this investigation.

The letter was written by Ricardo del Olmo, executive director of ANAFAM, and sent to Jamieson Greer, head of the USTR.