Canadian pharma market to reach US$46bn by 2020
A growing elderly population is the main reason for a doubling in market value
An aging population and universal healthcare will see Canada’s pharmaceutical market more than double in value before the end of the decade, according to the latest research by healthcare industry analyst GlobalData.
The report, Healthcare, Regulatory and Reimbursement Landscape – Canada, says the country’s pharmaceutical market will grow from $19.7bn in 2011 to $45.9bn by 2020, a compound annual growth rate (CAGR) of 9.9%.
GlobalData says Canada’s growing elderly population is the main reason for the projected growth. Although only 14% of the population was over 65 in 2010, this age group accounted for nearly 44% of the healthcare spending by provincial and territorial governments. In the forseeable future, this segment of the population will increase to represent nearly 17% of all Canadian residents by 2020.
Canada has a universal healthcare system that covers all citizens and the majority of the country’s healthcare spending comes from the government. On average, public healthcare expenditure accounts for approximately 70% of Canada’s total, while private health insurance companies contribute around 12%.
According to 2011 figures from the Canadian Institute of Health Information (CIHI), total spending on healthcare in Canada is expected to grow by more than $7bn to reach $210bn by the end of this year. Healthcare spending continues to rise faster than inflation and population growth in Canada, and is forecast to reach approximately 14% of Canada’s GDP by the end of the year.
