Mexico Active Pharmaceutical Ingredients Market Set to Grow at 6.02% CAGR, Hitting US$ 7.42 Billion by 2033

Mexico Active Pharmaceutical Ingredients Market Study

The Mexico Active Pharmaceutical Ingredients (API) Market is anticipated to grow from US$ 4.39 billion in the year 2024 to US$ 7.42 billion by 2033, representing a compound annual growth rate (CAGR) of 6.02% over the forecast years of 2025 to 2033. The growth is driven by an increase in demand for generic drugs, increased prevalence of chronic diseases, better pharmaceutical manufacturing capabilities, and favorable government regulations that encourage domestic API production and the reduction of import dependency.

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Mexico Active Pharmaceutical Ingredients Market Outlook

Active Pharmaceutical Ingredients (APIs) are the active substances of importance in pharmaceutical products that are responsible for the desired therapeutic effect. They are the bioactive ingredients that generate the efficacy of the drug in the treatment, prevention, or detection of diseases. In Mexico, the manufacture and application of APIs are vital for both domestic and foreign pharmaceutical industries.

Mexico has emerged as one of the world's biggest manufacturers of APIs, taking advantage of its high-caliber workforce, state-of-the-art technology, and suitable regulations. Mexico provides the majority of API requirements for pharmaceuticals for both local and export markets. APIs in Mexico are used across diverse areas such as cardiovascular, oncology, and anti-infective drugs.

In addition, the Mexican government encourages the pharmaceutical sector with programs that increase research and development. As healthcare continues to develop, demand for high-quality APIs also increases to make sure patients have access to safe and effective drugs. With interconnection from industry players, regulators, and academia, innovation and API quality produced in Mexico are properly encouraged and sustained.

Recent Development in the Mexico Active Pharmaceutical Ingredients Market

Aug 2025, Bayer is elbow-deep in bringing a drug ingredient plant in Veracruz up to date. Bayer will strengthen its manufacturing capacity by investing 800 million Mexican pesos ($43 million) in its Orizaba-Ixtaczoquitlán plant in the east Mexican state.

Hanmi Pharmaceutical revealed that it has successfully completed the launch of Aditams in Mexico under the export agreement signed with the Mexican pharmaceutical company 'Laboratorios Silanes' in October 2020. According to the deal, Hanmi Pharmaceutical will supply Gugutams to the Mexican market over a period of seven years, beginning in February 2025. Hanmi Pharmaceutical-developed Gugutams is the world's first urological combination therapy consisting of two active ingredients: tamsulosin, a treatment for Obstructive Prostatic Growth (OPG), and tadalafil, a treatment for erectile dysfunction (ED). It is also notable as the first prescription medicine in Korea to utilize Poly-Cap technology, which combines several active ingredients into one capsule

Kener Laboratorios will invest MX$5.18 billion to expand its injectable medicines plant in order to triple the installed capacity. The investment involves the construction of a new mixture center, anesthesia services, Car-T cell production capacity, and new regulatory filings. The plant is anticipated to go into production by February 2027 and will generate 800 direct and 2,000 indirect employments, said Federico Prince Laris, CEO and General Manager, Kener Laboratorios.

The Mexican Health Ministry (SSA) ensured the purchase of essential drugs and medical supplies for 2025-2026, Mexico's Minister of Health said in a government press briefing on January 14, 2024. It was thanks to communication and coordination with the pharmaceutical industry.

In July 2025, the government launched a national plan to enhance domestic manufacturing capacities supported by strategic investments and regulatory reforms. This initiative involves incentives for API manufacturing, public procurement prioritization, and pharmaceutical infrastructure development.

Genbio will invest MX$4 billion to construct and operate Latin America's first plasma fractionation plant. It is anticipated that the plant will generate 100 high-tech jobs and meet a regional need for the production of plasma-derived products.

Alpharma BioGenTec, a Grupo Neolpharma company, will make an initial contribution of MX$800 million. The investment will be used to establish infrastructure and create biopharmaceuticals, such as vaccines and other biotechnological drugs. The project also involves working with universities to advance technology and will create 110 direct and 310 indirect employment opportunities, states General Director, Grupo Neolpharma.

Neolsym, a subsidiary of Grupo Neolpharma, will invest MX$500 million in the production of active pharmaceutical ingredients and key raw materials for drugs. The venture is expected to create 120 direct and 500 indirect jobs, said Vice President of Innovation, Neolsym.

In May 2023, Centrient Pharmaceuticals and Ginkgo Bioworks deepened cooperation to advance environmentally friendly enzymatic and fermentation-based production of critical antibiotics. With Centrient having production facilities and sales offices in Mexico and internationally, such partnerships reflect the increased focus on green innovation.

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Growth Driver in the Mexico Active Pharmaceutical Ingredients Market

Enlarging Pharmaceutical Manufacturing Base

Mexico has emerged as a prominent center for pharmaceutical manufacturing, fueled by its geographic proximity to the United States and high involvement in trade agreements like USMCA. Proximity enables domestic manufacturers to seamlessly fit into North American supply chains, especially for APIs. Both government incentives and favorable labor costs make Mexico a preferred location for multinational corporations establishing API facilities. Local pharmaceutical firms are also investing in increasing capacity for production to decrease dependency on imports. With a growing demand for generic drugs and essential drugs, the nation's strong manufacturing base is driving API growth.

Increased Demand for Generic Medicines

The expensive nature of branded drugs has catalyzed generic drug demand in Mexico, and this has directly driven up demand for generic APIs. With healthcare systems and patients looking for affordable treatment, generic medicines have become a natural part of the pharmaceutical sector. Government efforts towards the encouragement of cheap healthcare, such as mass procurement of generics for public hospitals, continue to fuel this trend. Pharmaceutical firms increasingly turn their attention towards making high-quality generic APIs for local and export purposes.

Expansion in Biotechnology and Specialty

APIs Mexico's pharmaceutical industry is experiencing robust growth in specialty APIs and biotechnology, with key areas of focus being oncology, immunology, and rare diseases. Greater incidence of chronic and complex diseases has fueled demand for advanced biologics, biosimilars, and targeted therapy. Public and private investment-backed biotechnology research centers are facilitating speed-up of innovation in this arena. Global companies are also joining hands with Mexican companies to co-manufacture and co-develop biotech APIs. Enhanced regulatory convergence with global best practices is positioning Mexico as a competitive place for manufacturing specialty APIs for export.

Mexico Generic Active Pharmaceutical Ingredients Market

The generic API industry in Mexico is the foundation of the pharmaceutical business, fueled by increasing healthcare affordability demands. Generics serve a pivotal function in public healthcare programs as well as private consumption, providing affordable substitutes for branded medicines. Domestic manufacturers actively manufacture APIs for popular therapeutic classes like cardiovascular, diabetes, and infectious diseases. With patent losses of some blockbuster medicines, the prospects for Mexican firms to diversify their generic API manufacturing have increased manifold. Generics are promoted by the regulatory bodies through facilitating approvals and maintaining the quality control standards.

Mexico Biotech Active Pharmaceutical Ingredients Market

Mexico's biotech API market is expanding with biologics and biosimilars increasingly being used for the treatment of intricate diseases. In contrast to conventional APIs, biotech APIs are obtained from living cells and thus demand sophisticated production facilities and specialized knowledge. Mexico's pharmaceutical industry, aided by global partnerships, is making investments in biomanufacturing capacity. The expansion is primarily encouraged by increasing demand for oncology, autoimmune disease, and rare disease treatments. The biotech API industry is also supplemented by research collaborations among universities, biotech startups, and multinationals.

Mexico Captive Active Pharmaceutical Ingredients Market

Captive APIs are those manufactured internally by pharmaceutical firms for their own drug production requirements. In Mexico, the captive API segment is growing as firms seek to enhance security in the supply chain and decrease dependency on imports. Firms are establishing vertical integration to provide stable quality and cost management, especially for high-demand therapeutic categories such as antibiotics and chronic disease medications. Multinational pharmaceutical firms doing business in Mexico also have captive API manufacturing units in order to complement their regional manufacturing facilities.

Mexico Oncology Active Pharmaceutical Ingredients Market

The Mexican oncology API market is growing very quickly with the increasing rate of cancer prevalence and rising exposure to expensive therapies. APIs for chemotherapy drugs, target therapies, and biologics constitute the crux of cancer treatment. Private and public healthcare centers are giving higher preference to oncology treatment, generating consistent demand for low-cost effective drugs. Generic oncology APIs are being actively manufactured by Mexican producers to reduce the cost of treatment and increase accessibility.

Mexico Orthopedic Active Pharmaceutical Ingredients Market

The Mexican orthopedic API market is influenced by the increasing prevalence of bone disorders, osteoporosis, arthritis, and injuries. Active Pharmaceutical Ingredients employed in painkillers, anti-inflammatory drugs, and bone-deficiency therapies remain in constant demand. As the population ages, orthopedic conditions are anticipated to increase, leading to sustained long-term growth for this therapy segment. Sports injuries and changing lifestyle also drive increased demand for orthopedic treatments. Mexican pharmaceutical firms are increasing the manufacture of APIs for generic orthopedic medicines so they are low-cost and reachable.

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Mexico Gastroenterology Active Pharmaceutical Ingredients Market

Mexico's gastroenterology API market is driven by increasing cases of digestive system disorders such as acid reflux, ulcers, irritable bowel syndrome (IBS), and inflammatory bowel disease (IBD). Lifestyle conditions, including dietary lifestyles, obesity, and stress, have driven the increasing incidence of gastrointestinal disorders. APIs used in proton pump inhibitors, antacids, and biologics for IBD are in constant demand. Mexican pharmaceutical companies are manufacturing gastroenterology API generics to cater to domestic as well as international requirements.

Northern Mexico Active Pharmaceutical Ingredients Market

Northern Mexico is a critical hub in the Mexican API market, fueled by its border with the United States and highly developed industrial network. Monterrey and Tijuana are home to pharmaceutical production centers that cater to domestic and export markets. Northern Mexico's inclusion in U.S. supply chains leads to it being a major driver of the API trade under the USMCA deal. The region benefits from skilled labor, industrial clusters, and cross-border collaborations with U.S.-based companies. Investments in biotechnology and generics manufacturing are particularly prominent in this area.

Southern Mexico Active Pharmaceutical Ingredients Market

Southern Mexico, being less industrialized than its northern counterpart, is slowly emerging as a developing market for APIs. It is advantaged by government policies aimed at decentralizing industry and encouraging investment in healthcare infrastructure. Increased healthcare needs and the incidence of chronic diseases in southern states mean demand for APIs to treat conditions such as diabetes, cardiovascular disease, and gastroenterology is on the rise. Local drug companies are investing in small-scale API manufacturing and collaborations with multinationals to secure supply.

Drug Type

• Innovative
• Generic

Synthesis

• Synthetic
• Biotech

Type of Manufacturer

• Captive
• Merchant

Application

• Cardiovascular Diseases
• Oncology
• Central Nervous System and Neurology
• Orthopedic
• Endocrinology
• Pulmonology
• Gastroenterology
• Nephrology
• Ophthalmology
• Other Applications

Region

• Northern Mexico
• Central Mexico
• Southern Mexico
• Others

All Companies Have Been Covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Key Players Analysis

• Pfizer Inc.
• Novartis International AG
• Sanofi
• Boehringer Ingelheim
• Bristol-Myers Squibb
• Teva Pharmaceutical Industries Ltd.
• ELI Lilly and Company
• GlaxoSmithKline
• Merck & Co. Inc.
• Abbvie Inc.

Contact Us:

Company Name: Renub Research
Contact Person: Rajat Gupta
Phone No: (D) +91-120-421-9822 (IND)
Email: rajat@renub.com
Website: https://www.renub.com/

About the Company:

Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.

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