The Saudi Arabia pharmaceutical drugs market comprises of prescription and OTC drugs used for treating various diseases in humans. Some key drug types offered in the market include analgesics, anti-infective drugs, cardiovascular drugs, dermatology drugs, gastro intestinal drugs, etc. Prescription drugs require a prescription from a physician before they can be purchased whereas OTC drugs can be purchased directly from pharmacies or drug stores without a prescription. The pharmaceutical drugs market in Saudi Arabia is well developed owing to strong presence of large pharmaceutical manufacturers as well as increase in healthcare expenditure over the past few years. Universal healthcare is provided to all Saudi nationals through government funded programs encouraging high usage of drugs.
The global Saudi Arabia Pharmaceutical Drugs Market is estimated to be valued at US$ 528.47 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
High healthcare spending in Saudi Arabia- Healthcare is one of the top priorities of the Saudi government. Total healthcare expenditure in the country has grown at a CAGR of 5.8% from 2010 to 2020 reaching SAR 168.7 billion (US$ 45 billion) in 2020. This high expenditure has ensured availability of modern healthcare and pharmaceutical drugs to citizens. The trend of increasing healthcare budget year-on-year will drive the demand for various pharmaceutical drugs in the country.
Increasing prevalence of chronic diseases – Non-communicable diseases like diabetes, cardiovascular diseases, cancer are highly prevalent in Saudi Arabia. According to a study, around 35% of adult population suffers from obesity and 28% from diabetes. Rising diabetes and CVD cases require lifelong drug therapies which is propelling the overall pharmaceutical market growth in the country.
Segment Analysis
The Saudi Arabia pharmaceutical drugs market size is segmented into prescription drugs and over-the-counter (OTC) drugs. The prescription drugs segment currently dominates the market and accounts for around 70% of the total market share. This is because prescription drugs are required for treating chronic diseases such as diabetes, heart diseases, cancer and others. Due to high prevalence of such ailments in the country, the demand for prescription medications continues to remain high.
PEST Analysis
Political: The government is focusing on improving healthcare infrastructure and easing market regulations to ensure availability of affordable drugs. It is also promoting local production to reduce import dependence.
Economic: Rising affluence, healthcare spending by government and NGOs are driving market growth. However, economic uncertainties may impact the overall industry performance.
Social: Growing awareness about illness prevention and medication adherence is a key trend. Aging population also contributes to pharmaceutical market expansion.
Technological: E-pharmacy platforms are proliferating while drug makers strive to develop novel drugs through R&D. Biosimilars may replace blockbuster biologics and curb spending on branded medications.
Key Takeaways
The global Saudi Arabia pharmaceutical drugs market is expected to witness high growth. The prescription drugs segment currently dominates the market and is expected to continue its dominance over the forecast period owing to high prevalence of chronic diseases. The global Saudi Arabia Pharmaceutical Drugs Market is estimated to be valued at US$ 528.47 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030.
Regional analysis comprises:
The Western region holds the major share in the Saudi Arabia pharmaceutical drugs market currently. This is attributed to presence of major healthcare facilities and growing patient pool in the region. However, the central region is projected to report fastest growth over the coming years supported by expanding healthcare infrastructure and initiatives to improve access in rural areas.
Key players operating in the Saudi Arabia pharmaceutical drugs market are: AbbVie, Mylan Pharmaceuticals, Gedeon Richter, HRA Pharma, Cipla Ltd, Aurobindo Pharma Ltd, Dr. Reddy’s Laboratories Ltd, Sun Pharmaceutical Industries Ltd, Torrent Pharmaceuticals Ltd, Mankind Pharma Ltd. Key players are focusing on strengthening their product portfolio as well as engagement in partnerships with public and private organizations to benefit market expansion.
