GlobalData,  a leading global research and consulting firm, study shows that Mexico’s pharmaceutical and medical devices industries will be worth approximately $22.5 billion and $5.4 billion by 2020, respectively, totaling an overall healthcare market value of $27.9 billion.

The company’s latest report states that this overall increase in Mexico’s healthcare market value will represent a Compound Annual Growth Rate (CAGR) of 6.8per cent, climbing from $17.6 billion in 2013, as estimated in combined findings from GlobalData and the Organization for Economic Co-operation and Development.

According to GlobalData, a number of factors, including the prevalence of non-communicable diseases, improvements in regulatory guidelines, government support for the healthcare sector, and the North American Free Trade Agreement, will help drive the anticipated market growth.

Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics, says: “Over 350 domestic and multi-national companies are engaged in the manufacture of pharmaceutical products in Mexico, making the country one of the leading producers in the Americas.

“During the next five years, the pharmaceutical sector will have the opportunity to expand, due to a number of branded drugs losing market exclusivity. This will benefit domestic manufacturers, as the top pharmaceutical companies in Mexico mostly deal with generic drugs.”

Mexico was Latin America’s main exporter of pharmaceutical products in 2012, and the country has grown to be a key exporter to Europe and the US, thanks largely to free trade agreements.

Owide concludes: “While the Mexican pharmaceutical market may be vulnerable, with a high share of private healthcare expenditure, alongside out-of-pocket payments and the problem of counterfeit drugs, the overall outlook remains bright.

“Non-communicable disease, which is rising in prevalence due to the increasing elderly population and changes to diet and lifestyle, combined with the Mexican government’s aim to provide universal healthcare coverage, will increase public expenditure and create greater market opportunities for both the pharmaceutical and medical device industries.”