Saudi Arabia Pharmaceutical Market to Reach USD 19,764 Million in 2028
Published | 16 March 2022
Saudi Arabia pharmaceutical market's growth can be attributed to rapid reforms in the healthcare sector of Saudi Arabia, increasing strategic agreements among the market players, and breakthrough drug launches…
A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Saudi Arabia pharmaceutical Market was worth USD 10,849 million in 2021 and is anticipated to reach USD 19,764 million by 2028, exhibiting a CAGR of 9.3% during the forecast period. The market growth is supported by favorable government policy of localizing the pharmaceutical industry and rapid reforms in the healthcare sector driving the growth rate of the regional pharmaceutical industry Cut-throat competition between major players encourages them to launch improvised and better drugs also aids the growth of the market.
Favorable Government Policy of Localizing Pharmaceutical Industry coupled with Rapid Reforms in Healthcare Sector to Drive Market Growth
Saudi Arabia’s Vision 2030 to promote the localization of technology of pharmaceutical industries is in line with numerous collaborations taking place within the region to augment the local manufacturing capabilities. Key players are launching new and improved drugs, which can spike the market's growth over the forecast period. For instance, in September 2019, Celltrion Inc., a South Korean pharmaceutical company, launched its breast and gastric cancer biosimilar drug 'Herzuma' in Iraq. The drug was also launched in Jordan, Israel, the United Arab Emirates, Saudi Arabia, and Morocco. These factors contribute to accelerating the growth rate of Saudi Arabia pharmaceutical market.
Complicated Domestic Regulatory Systems and Lack of R&D Impeding Growth of Saudi Arabia Pharmaceutical Market
The highly complicated nature of the domestic regulatory system restricts the entry of multinational companies and drug makers from developing countries to enter the regional market, pricing biased in favor of the local industry and the tight government control on prices resulting in the lowest drug prices in the region. Furthermore, despite the government's financial support for R&D activities, most research projects concerning pharmaceutical development are scattered without any substantial outcomes. Thus, the regional drugs market is compelled to turn towards imports for its pharmaceutical requirements. The factor mentioned above is anticipated to hamper Saudi Arabia's pharmaceuticals market's during the forecast period.
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High Preference of Local Population for Branded Drugs Propels Market Growth During Forecast Period
Both doctors and patients prefer branded drugs due to higher trust and strong brand loyalty. As a result, they are expected to exhibit the highest growth over the forecast period. Generic drugs are also expected to witness steady growth during the forecast period. The growth is attributed to the rising awareness about generic drugs, lower prices, and the emergence of numerous health insurance companies, thus lowering the cost of treatment by encouraging healthcare providers to prescribe generic drugs.
Online Pharmacy Segment Under Distribution Channels to Grow with Highest CAGR during the Forecast Period.
On the basis of distribution channels, the Saudi Arabia pharmaceutical market is segmented into hospital, retail, and online pharmacies. Amidst the segmentations, although the hospital pharmacies accounted for the largest market share in 2021, the online pharmacies segment is estimated to witness the highest growth during the forecast period as a result of increasing penetration of smartphones, escalating proliferation of the internet, and rise of multiple e-commerce platforms across the region. There has been a rise in the number of online pharmacies; many retail pharmacies are also launching their websites and making their products available online across the country. The COVID-19 pandemic further augmented the number of online portal users and is expected to supplement the growth of the Saudi Arabia e-pharmacy market in the upcoming five years. An increasing number of geriatric populations living separately from the family is promoting the growth of the online shopping of medicines.
Impact of COVID-19 on the Saudi Arabia Pharmaceutical Market
The disastrous COVID-19 pandemic affected the Saudi Arabia pharmaceutical company as COVID-19 delayed the clinical trials to prevent close contact between people, thus causing a delay in the launch of new drugs and vaccines. It also affected the global value supply chains. Besides, it is expected to bolster the growth rate of Saudi Arabia pharmaceutical market due to an increase in investment, funding, and development of effective drugs to tackle COVID- 10. For instance, CEPI is partnering with Curevac, Inovio Pharmaceuticals, Moderna, Novavax, The University of Hong Kong, The University of Oxford, The University of Queensland, and a consortium led by Institute Pasteur on the development of COVID-19 vaccine programs.
The Saudi Arabia Pharmaceutical Market is fragmented, with numerous players serving the market. The key players dominating the Saudi Arabia pharmaceutical market are Pfizer Inc., Sanofi S.A., AstraZeneca, GlaxoSmithKline Plc, Life Care group of Pharmacies, Baxter International Inc., Planet Pharmacies (Zahrat Al Rawdah), Tadawi Pharmacies, Al Nahdi medical, Al-Safwwa Pharmacy, Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Jamjoom Pharmaceuticals Co., Jhulphar and other prominent players. The market players maintain their dominance by signing strategic agreements with multinational pharmaceutical companies launching new and improved products for the customers. The key marketing strategies adopted by the industry players are collaborations, partnerships, and acquisition to expand their customer reach.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the Saudi Arabia pharmaceutical market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Saudi Arabia pharmaceutical market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the market's growth drivers, challenges, and competitive dynamics.
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- Saudi Arabia Pharmaceutical Market; By Drug Type (Branded Drugs and Generic Drugs); By Product Type (Prescription Drugs And OTC (Over-The-Counter) Drugs); By Application (Cardiovascular, Anti-Infective, Musculoskeletal, Oncology, Metabolic Disorder, Central Nervous System, Gastrointestinal, Respiratory, Dermatology, Ophthalmology, Hematology, And Others (Nutraceutical, Dental And Veterinarian)); By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, And Online Pharmacy); Trend Analysis, Competitive Market Share & Forecast, 2018-2028
Publish Date: March 2022
Rapid improvements in Saudi Arabia's healthcare system, more strategic collaborations among market competitors, and breakthrough medication launches are all contributing to the Saudi Arabia pharmaceutical market's growth.
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