February 24, 2024
Saudi Arabia Pharmaceutical Drugs Market

The Saudi Arabia Pharmaceutical Drugs Market Is Driven By Rising Healthcare Expenditure

The pharmaceutical drugs market in Saudi Arabia involves manufacturing and sales of prescription and over-the-counter drugs used to cure various diseases. Main products in this market include analgesics, anti-infective drugs, dermatological drugs, gastro-intestinal drugs, cardiological drugs, nutritionals, anti-diabetics, vaccines, and cancer drugs. Increased focus on preventive healthcare and early detection and treatment of diseases is generating high demand for pharmaceutical drugs in Saudi Arabia. Availability of generic drugs at affordable costs is also boosting the market growth.

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 key trends:

One of the major trends witnessed in the Saudi Arabia pharmaceutical drugs market size is the increasing penetration of generics. According to Saudi FDA, generics comprised more than 60% of the total Saudi pharmaceutical market in terms of volume in 2020. This can be attributed to the government initiatives promoting the use of generic drugs to reduce healthcare expenditure. For example, in 2020, the Health Ministry of Saudi Arabia increased the reference price for all prescription medicines to give more preference to generics over patented drugs. Furthermore, industry players are focusing on developing biosimilar drugs in cancer, diabetes, and autoimmune disease segments which is expected to boost the generics market in coming years. Another key trend is the rising online sales of pharmaceutical drugs in Saudi Arabia driven by the COVID-19 pandemic. E-pharmacies provide convenience and contactless delivery options to customers. This trend is expected to continue even post pandemic due to changing consumer behavior and focus on digital platforms.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the Saudi Arabia pharmaceutical drugs market due to the presence of stringent regulations and high capital requirements for R&D.

Bargaining power of buyers: The bargaining power of buyers is high given the presence of universal healthcare insurance and strong negotiating power of hospitals and government buyers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the fragmented nature of raw material suppliers and differential capabilities.

Threat of new substitutes: The threat of new substitutes is low as pharmaceutical drugs have limited alternatives.

Competitive rivalry: High due to presence of many regional and global companies.

Key Takeaways

The global Saudi Arabia pharmaceutical drugs market is expected to witness high growth. 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: The Western region dominates the Saudi Arabia pharmaceutical drugs market with over 35% share owing to the presence of major hospitals and healthcare facilities. The Eastern region is projected to grow at the fastest pace during the forecast period.

Key players: 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. AbbVie leads the market with its wide product portfolio and strong distribution network across the country.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it