Market Environment

Mexico is already one of Latin America’s major pharmaceutical markets. Germany Trade & Invest estimated the Mexican pharmaceutical market at around USD 20 billion in 2026 and expects it could approximately double by 2033.

Mexico is already one of Latin America’s major pharmaceutical markets. Germany Trade & Invest estimated the Mexican pharmaceutical market at around USD 20 billion in 2026 and expects it could approximately double by 2033.

During the webinar, Eduardo Franky presented IQVIA data indicating a total audited Mexican pharmaceutical market heading toward approximately USD 22.6 billion, with value growth of around 6.7%, while unit volumes were declining slightly. The implication is important: growth is increasingly being driven by product mix, pricing and innovation rather than by higher consumption volumes alone.

Mexico’s import profile further underlines the market’s international relevance. Pharmaceutical imports reached almost USD 10.6 billion in 2025, approximately 64% more than in 2021. Germany was Mexico’s second-largest pharmaceutical supplier in 2024, accounting for around USD 1.4 billion in deliveries.

The opportunity consequently extends well beyond finished pharmaceutical products. Expansion in local production also generates demand for laboratory technology, process equipment, packaging systems, automation and specialized industrial services.

The composition of pharmaceutical growth is changing as well. Mexico combines a sizeable existing market with unmet demand.

In his presentation, Eduardo Franky identified anti-obesity treatments, oncology and vaccines among the strongest-performing therapeutic areas. In particular, GLP-1 therapies are reshaping the prescription market and contributing significantly to value growth.

This trend illustrates a broader change in the Mexican market. Growth increasingly depends on innovative and higher-value treatments rather than simply on growing unit volumes.

The same applies to advanced therapies. Franky highlighted CAR-T cell therapies, bispecific antibodies and radioligand therapies as fields with strong international momentum. In Mexico, however, their uptake remains restricted by infrastructure, manufacturing capacity and patient-access constraints. These bottlenecks are obstacles, but they also identify areas in which specialized international companies can contribute technology, expertise and investment.

During the webinar, Franky pointed to public-private alliances and investments involving companies including Bayer, Boehringer Ingelheim, Moderna, Birmex and Pfizer. These initiatives are contributing to the localization of capabilities ranging from active pharmaceutical ingredients and formulation to mRNA technologies.

Recent investment announcements reinforce this picture. Boehringer Ingelheim has announced an expansion of approximately USD 188 million at its Xochimilco operations, while Bayer is investing around USD 55 million at its Lerma site.

Mexico City and the neighboring State of Mexico remain traditional pharmaceutical production centers. Their concentration of manufacturers, suppliers, specialized service providers and skilled personnel strengthens the regional ecosystem.

Localization also increasingly has a strategic dimension. According to the webinar presentation, companies with local investments tend to perform more strongly in Mexico’s public-sector market. At the same time, domestic production can help reduce supply-chain exposure and position companies closer to the North American market.

This broader context was a central part of Martin Toscano’s contribution to the webinar; Mexico combines a substantial manufacturing base, geographic proximity to the United States and preferential access through the USMCA. The country has developed industrial capabilities across automotive, aerospace, chemicals, consumer goods, healthcare and other manufacturing sectors. More than 70% of Mexican exports are destined for the U.S. market, illustrating the depth of Mexico’s integration into North American supply chains.

This position has become increasingly relevant as companies regionalize supply chains. Yet the opportunity is accompanied by uncertainty.

Toscano emphasized that geopolitical volatility, tariffs and changing trade conditions are becoming important investment variables. He also identified energy, water, infrastructure, regulation and local value-chain integration as constraints that could limit Mexico’s ability to fully benefit from regionalization.

These concerns are consistent with Mexico’s wider economic environment. The U.S. decision in July 2026 not to proceed with a planned USMCA extension increased planning uncertainty, although the agreement itself remains in force (Office of the United States Trade Representative.

At the same time, foreign investment remains substantial. Mexico attracted USD 34.97 billion in FDI during the first half of 2026, although 88.5% consisted of reinvested earnings and only 7.8% represented new investments.

For pharmaceutical and healthcare companies, market potential therefore cannot be considered separately from Mexico’s wider investment environment.

Mexico’s healthcare system continues to face structural limitations. International companies need to balance the complexity and the long-term potential of the market.

As presented by Eduardo Franky, the 2025–2030 Health Sector Program contains ambitious objectives relating to universal healthcare access and regulatory reform. However, budget limitations, fragmented procurement structures and uneven implementation continue to constrain access to innovation.

Regulatory and market-access barriers remain relevant for foreign companies as well. Germany Trade & Invest identifies lengthy approval procedures and disruptions in public procurement among the risks facing pharmaceutical and medical-technology suppliers in Mexico.

The webinar also highlighted the scale of the access gap. According to the data presented by Pathway Healthcare Strategy & Consulting, average public access to new medicines in Mexico occurs approximately 5.7 years later than comparable U.S. or European access, while per-capita medicine consumption remains substantially below the OECD average.

Beyond pharma, Mexico’s medical-technology market is also expanding. BMI forecasts cited by Germany Trade & Invest indicate that the market could grow from approximately USD 9.3 billion in 2024 to USD 12.4 billion by 2029. Around 81.5% of demand was supplied through imports in 2024, underlining the importance of international suppliers.

New hospital projects create additional demand for diagnostics, operating-room equipment, sterilization technology and other specialized healthcare infrastructure. This adds another dimension to the opportunity for German technology providers.

Healthcare and life sciences are strategically important for German Centre Mexico, both because the sector is strongly represented in our business community and because it reflects the German Centre’s role in supporting international companies in key growth markets. The webinar also drew directly on our wider network: Martin Toscano, President of Evonik Mexico and AHK Mexico, is closely connected to German Centre Mexico through CAMEXA and regularly exchanges views with German Centre and LBBW, while Eduardo Franky is an established expert who has already supported companies within the network; Evonik’s presence as a customer at German Centre Singapore further underlines these cross-network ties.

The German Centre’s role extends beyond office space. It provides an environment in which international companies can establish and develop their Mexican operations while becoming part of an established German-Mexican business network.

For German companies, the potential extends across the value chain: pharmaceuticals, medical devices, laboratory equipment, packaging, automation, production technology and specialized services.

Mexico’s healthcare market is expanding, but its significance goes beyond market growth alone. Production is becoming more localized, innovation is gaining importance and the interaction between industrial policy, market access and supply-chain strategy is becoming increasingly relevant.

References

GTAI (2026a, April 8). Mexikos Pharmamarkt trotz Regulierung dynamisch. Germany Trade & Invest.

GTAI (2026b, March 5). Mexiko nicht nur als Absatzmarkt von Medizintechnik interessant. Germany Trade & Invest.

Lisker, B. (2026, May 29). Mexiko: Sorge um das Erfolgsmodell. Germany Trade & Invest.

Morales, R. (2026, August 24). México capta un récord de 34,968 millones de dólares de IED en el primer semestre de 2026. El Economista.

Office of the United States Trade Representative. (2026, July 1). Ambassador Greer issues statement on the USMCA joint review.

Webinar source: German Centre Mexico. (2026, September 22). Check-in: Healthcare & Pharma in Mexico [Webinar]. Presentations by Martin Toscano, Evonik Industries de México, and Eduardo Franky, Pathway Healthcare Strategy & Consulting; moderated by Jimena Kreusler.