April 20, 2024
Saudi Arabia Pharmaceutical Drugs Market

The Saudi Arabia Pharmaceutical Drugs Market Is Driven By Increasing Healthcare Spending In The Country

The pharmaceutical drugs market in Saudi Arabia comprises a wide variety of prescription and over-the-counter drugs used for the treatment and prevention of various diseases and conditions. The market covers different categories of drugs such as analgesics, antipyretics, anti-infectives, cardiovascular drugs, anti-asthma drugs, antidiabetics, gastrointestinal drugs, pain management drugs, dermatology drugs, and others. Pharmaceutical drugs play a vital role in maintaining health and improving quality of life by curing or preventing diseases. The demand for pharmaceutical drugs is rising in Saudi Arabia due to growing health awareness, increasing burden of chronic diseases, and rising per capita healthcare expenditure.

The Saudi Arabia Pharmaceutical Drugs Market is estimated to be valued at US$ 528.47 Bn in 2024 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 key trends in the Saudi Arabia Pharmaceutical Drugs Market Size is the shift towards biologics and biosimilars. Biologics are typically complex molecules produced using biotechnology and are far more complex than chemically synthesized small molecule drugs. Areas like oncology, immunology, endocrinology and others are increasingly adopting biologics due to their high target selectivity and efficacy. As biologics lose their patents, the demand for biosimilars is rising in Saudi Arabia. This is prompting pharmaceutical manufacturers to focus on development of biosimilars to gain market share. Biosimilars offer clinically meaningful benefits like greater affordability and accessibility of biologic medicines. Their uptake is expected to significantly reduce healthcare expenditures in the country.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the Saudi Arabia pharmaceutical drugs market is moderate. New regulations make entry difficult and costly due to clinical trials and certification requirements.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of generic drugs and competition in the market. However, buyers have less power against patented drugs.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the presence of a large number of suppliers and producers. Suppliers have more power for key ingredients and raw materials.

Threat of new substitutes: The threat is moderate as alternative treatment options and generic drugs are available. However, threat is low for patented drugs without alternatives.

Competitive rivalry: Intense due to the presence of local and multinational brands competing on the basis of quality, price, and innovation.

Key Takeaways

The Saudi Arabia pharmaceutical drugs market is expected to witness high growth at a CAGR of 7.4% during the forecast period of 2023 to 2030. The market size is projected to reach US$ 528.47 Bn by 2024.

Regional analysis: The Western region dominates the market owing to a large customer base. Eastern region is expected to witness fastest growth due to increasing health awareness and rising income.

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. They are focusing on product innovation and portfolio expansion in the country.

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