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.
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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.
Top Featured Companies Dominating The Market
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.
