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HEALTHCARE & PHARMACEUTICAL

Saudi Arabia Pharmaceutical Market Segmentation By Product (OTC Products {Generic Drugs and Branded Drugs} and Prescription Product); By Disease (Cancer, Diabetes, Obesity, Infectious Diseases, Cardiovascular Diseases and Others); By Distribution Channel (Retail Pharmacies and Hospital Pharmacies); By End User (Hospitals, Private clinics and Others) - Industry Demand Analysis and Opportunity Outlook 2028

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Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

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Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

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IN THE NEWS

  • April 30, 2020: A pharmaceutical company based in UAE, Julphar, announced its decision to resume its exports to Saudi Arabia after lifting the suspension. The company will be starting the exports from the third quarter of the year 2020.

Introduction

The pharmaceutical industry is an industry which involves development, production and marketing of pharmaceutical drugs in order to use them as a medication with an aim to cure, vaccinate or reduce the symptoms of patients. The market has to follow various laws and regulations that govern safety, testing, patenting, efficacy and marketing of drugs. Saudi Arabia pharmaceutical market is controlled by various branded drugs of multinational companies that are sold under different brand names in alliance with local distributors as well as companies. There is a strong brand loyalty for multinational drugs in Saudi Arabia which is expected to drive the demand for pharmaceuticals market in the upcoming years.

Market Size and Forecast

The pharmaceutical market in Saudi Arabia is expected to emerge as one of the fastest growing market in the future.  As there is a rise in improved healthcare infrastructure as well as non-communicable diseases in Saudi Arabia, the pharmaceutical market is anticipated to witness growth in Saudi Arabia in the upcoming years. Moreover, factors such as rising preference among stakeholders for branded drugs and increasing commonness of several chronic diseases might increase the growth opportunities of the market in the upcoming years. Furthermore, the Saudi Arabia pharmaceutical market is anticipated to record a significant CAGR throughout the forecast period, i.e. 2020-2028. The market is segmented by product, by diseases, by distribution channel, by end user and by region.

Growth Drivers

Rising preference among key stakeholders for branded drugs

The rising demand for branded drugs among patients and prescribers is creating several opportunities in the country for multinational players. They are sold under different brand names through the alliance with local distributors which helps new players to reach wider pharmacies all across the country. On the other hand, Saudi Arabia largely depends upon imports from various geographies for pharmaceuticals; however, there is an increase in the multinational pharmaceutical company giants which offer innovative as well as second brands through local players.

Rising commonness of several chronic diseases to increase growth of pharmaceutical market in the country

Chronic diseases such as stroke, obesity, cancer, hypertension, ischemic heart disease, diabetes and others are rising rapidly which, in turn, are estimated to lead to an enormous demand for pharmaceuticals in the country in the upcoming years. 

Government commitments to provide mandatory health insurance and quality healthcare to boost market growth

As the commitments made by the local government in order to provide quality healthcare as well as compulsory health insurance for emigrants working in private sectors are growing, the market for pharmaceuticals in Saudi Arabia is expected to boost in the upcoming years. On the other hand, healthcare reforms such as 100 percent foreign direct investment in the sector of pharmaceuticals are further projected to create growth opportunities in the country for multinational players.

Restraints

Lack of research and development capabilities

There are various factors such as challenging regulatory environment imposed by Saudi authorities attempting to protect local authorities as well as lacking in research and development which might be a restraint for Saudi Arabia pharmaceutical market. This factor is expected to hamper the growth of the market in upcoming years.

Market Segmentation Synopsis

By Product

On the basis of product, the market is segmented into over-the-counter products as well as prescription product. Prescription product segment is further segmented into generic drugs and branded drugs. Branded drugs sub-segment is estimated to show highest growth in the upcoming years whereas generic drugs sub-segment is anticipated to have a stable growth in the upcoming years.

Saudi-Arabia-Pharmaceutical-Market

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By Disease

On the basis of disease, the market is segmented into cancer, diabetes, cardiovascular diseases, obesity, infectious diseases and others. Cardiovascular disease segment is expected to show highest growth in the upcoming years, followed by the diabetes segment, whereas, obesity segment is expected to show a significant growth owing to the rise in diabetes as well as cardiovascular diseases in the region.

By distribution channel

On the basis of distribution channel, Saudi Arabia pharmaceutical market is segmented into retail pharmacies as well as hospital pharmacies. Retail pharmacies segment is expected to show the highest growth in the upcoming years, followed by the hospital pharmacies segment. As a wide variety of products are available and modernized, and westernised retail pharmacies are increasing, a boost in the growth of retail pharmacies is anticipated in the upcoming years.

By End User

On the basis of end user, market is segmented into hospitals, private clinics and others. The segment for hospitals is expected to show highest growth in the upcoming years owing to the increase in number of patients per year and growing demand for vaccines and drugs, followed by the clinics.

Competitive Landscape

Some of the affluent industry leaders in the Saudi Arabia pharmaceutical market are Spimaco, Tabuk pharmaceutical manufacturing co., Julphar, Jamjoom pharma, GlaxoSmithKline plc., Pfizer Inc., Novartis AG and Sanofi. Apparently, several companies are investing massively and focusing on the growth in order to gain an extra edge of competitiveness in the Saudi Arabia pharmaceutical market.


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