The business intelligence firm's new report* states that from a 2011 figure of $19.7 billion, the North American country's pharmaceutical market will climb to a value of $45.9 billion by 2020, representing a positive compound annual growth rate (CAGR) of 9.9%.
Globaldata cites Canada's growing elderly population as a primary factor for the industry's impressive growth forecast. Although only 14% of the population was over 65 in 2010, they accounted for nearly 44% of the healthcare spending by provincial and territorial governments. This elderly segment of the population will increase in size in the foreseeable future, representing almost 17% of all Canadian residents by 2020.
Canada has a universal healthcare system that covers all citizens and, as a result, 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 the Canadian Institute of Health information (CIHI), as of 2011, total spending on healthcare in Canada is expected to grow by more than $7 billion to reach $210 billion by the end of this year. Healthcare spending continues to rise faster than both inflation and population growth in Canada, and is forecast to reach approximately 14% of Canada's GDP by the end of 2012.