Mexico’s Pharmaceutical Industry Anchors Growth, Modernization

Mexico’s pharmaceutical industry continues to consolidate its role as a driver of economic activity, employment, and healthcare access, while adapting to changes in primary care delivery, international market dynamics, and digital transformation across the value chain.

Despite recurring public debate over pricing and access, Mexico’s pharmaceutical industry represents one of the country’s most dynamic productive pillars, reports CANIFARMA.  In 2024, the pharmaceutical industry and the broader health sector accounted for about 5.1% of national gross domestic product, according to industry data. As of 2Q24, GDP related specifically to pharmaceutical manufacturing reached MX$6.58 trillion (US$365.8 billion).

Mexico’s pharmaceutical market ranks as the second largest in Latin America, after Brazil, and the 12th globally. The sector generated more than 2.17 million direct and indirect jobs in 2024, with average compensation exceeding the manufacturing industry mean. Employment quality is further reflected in a higher-than-average share of postgraduate-trained personnel and a proportionally stronger presence of women in management and executive roles compared with other manufacturing segments.

Foreign direct investment remains part of the industry’s footprint. Between January and September 2024, wholesale pharmaceutical trade attracted nearly US$85 million in foreign investment, highlights CANIFARMA. Human-use medicines account for more than 70% of total sales, followed by medical devices and veterinary products. Most pharmaceutical production, about 90%, is destined for the domestic market, positioning Mexico as a regional logistics and supply hub.

The sector’s economic reach extends beyond manufacturing. The pharmaceutical industry is directly linked to 161 of the 259 economic branches in Mexico’s input-output matrix, or roughly 62% of all industrial and service activities. For every MX$100 (US$5.56) produced, about MX$53  (US$2.95) corresponds to gross value added, reflecting a level above many other manufacturing activities and indicating a capacity for transformation rather than simple assembly.

Primary care delivery has also evolved. According to Marcos Pascual, CEO, Asesorías en Farmacias, clinics adjacent to private pharmacies are expanding their role within Mexico’s health system. Roughly 20,000 such clinics operate within a network of about 50,000 private pharmacies nationwide, concentrated mainly in Mexico City, Guadalajara, and Monterrey. These clinics already provide close to 10 million consultations per month and are projected to grow by about 11% in 2025.

The model is based on immediacy and affordability. Consultations typically cost about MX$50 (US$2.78), allowing patients to avoid long wait times common in public facilities. Pharmacy clinics are expected to expand into diagnostic services and short-stay outpatient procedures, adding capacity to the primary care network. Pascual says that between 80% and 90% of users report being satisfied with the clinics, based on waiting times, cost, and care received.

Federal policy has also turned attention to this segment. President Claudia Sheinbaum recently announced the creation of 5,000 pharmacy-linked clinics in partnership with Welfare Banks, targeting rural and marginalized communities. Industry representatives argue that private clinics can complement public services and contribute data useful for prevention strategies related to chronic diseases such as diabetes and hypertension.

Beyond domestic care delivery, Mexico’s pharmaceutical ecosystem intersects with the medical devices industry, which has shown sustained growth. According to the National Association of Health Providers, cited by Pascual, Mexican manufacturing represents roughly 8.7% of a global medical devices market valued at about US$254 billion. In 2024, the sector attracted US$678 million in foreign investment and accounted for 3.6% of Mexico’s total exports, with 64% shipped to the United States.

While the local market grows, Mexican pharmaceutical companies are also exploring international expansion. Enrique Remezal, CEO, icon Group/Avanzia Pharma, points to the European Union as a high-value but complex market. The region accounted for nearly 23% of global prescription drug sales in 2024, with spending expected to rise through 2029 despite pricing pressure and patent expirations. For Latin American manufacturers, opportunities exist in generics, biosimilars, niche hospital products, and consumer health, but entry requires compliance with strict regulatory, quality, and market access frameworks.

Digital transformation is another area shaping competitiveness. Pedro Alvarez, CEO and Founder, TS4 Strategy, says that the industry is facing a choice between maintaining heavily regulated legacy processes or accelerating toward data-driven value chains. Consulting studies estimate that Generative AI could contribute up to US$110 billion annually to the pharmaceutical sector through applications in research, operations, and commercialization.

Digital tools such as telemonitoring, wearable devices, and real-world data platforms are increasingly integrated into clinical trials and supply chains. Industry investment in cloud computing, analytics, and automation is expected to remain a priority through 2026. However, executives also face challenges related to data governance, cybersecurity, regulatory compliance, and talent shortages, particularly in areas such as machine learning and digital regulation.

Mexico has begun addressing governance questions around AI. A federal bill presented in February 2024 proposes classifying AI systems by risk level and imposing oversight requirements on high-risk applications, including those in healthcare. Industry observers note that regulation aims to balance control with the ethical and responsible adoption of new technologies.

Taken together, these trends position Mexico’s pharmaceutical industry at the intersection of healthcare delivery, industrial policy and digital modernization. The sector’s contribution to GDP, employment and investment remains significant, while new care models, international strategies, and digital capabilities continue to shape its role in the broader economy.