by 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 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Saudi Arabia pharmaceutical drugs market comprises pharmaceutical drugs ranging from over-the-counter drugs to prescription drugs. The market is mainly driven by the growing prevalence of chronic diseases like cancer, diabetes, cardiovascular diseases, and respiratory diseases. According to the Saudi Health Interview Survey, around 16.7% of Saudis suffer from diabetes, 32.7% from hypertension, and 3.8% from asthma. To cater to the treatment needs of such a huge patient population, the government is taking initiatives to boost local pharmaceutical production. It aims to achieve self-sufficiency in pharmaceutical manufacturing and reduce dependency on imports by 2030. This is expected to fuel the growth of the pharmaceutical drugs market in Saudi Arabia during the forecast period.
Market key trends:
The Saudi Arabia pharmaceutical drugs market is witnessing notable growth driven by rising healthcare expenditure and increase in the sales of generic drugs. According to data, healthcare spending in Saudi Arabia grew at a CAGR of 9.4% during 2014-2018 and reached US$ 46.8 billion in 2018. This rising healthcare spending is enabling people to afford expensive patented drugs for treating chronic diseases. At the same time, sales of low-cost generic drugs are also surging as they offer comparable effectiveness and safety at a lower price than their branded counterparts. Local production and marketing of generic drugs by domestic companies like SPIMACO and Tabuk Pharmaceuticals are helping expand access to pharmaceutical treatment in the country. This rise in affordable healthcare is a major trend propelling the Saudi Arabia pharmaceutical drugs market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Saudi Arabia pharmaceutical drugs market is moderately low due to high costs associated with R&D, distribution network, branding and manufacturing facilities.
Bargaining power of buyers: The bargaining power of buyers is moderate owing to the presence of various drug manufacturers and availability of generic drugs. However, buyers have less bargaining power due to inelastic demand for pharmaceutical drugs.
Bargaining power of suppliers: Pharmaceutical drug manufacturers have moderate bargaining power over suppliers of raw materials and packaging due to the high switching costs for suppliers and suppliers operating at global level.
Threat of new substitutes: The threat of new substitutes is low due to lack of substitution in drugs for treatment of various medical conditions. However, other treatment options like therapies pose a moderate threat.
Competitive rivalry: The competitive rivalry in the market is high due to presence of various global and domestic players.
Key Takeaways
The global Saudi Arabia Pharmaceutical Drugs Market Demand is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing healthcare spending and growing healthcare infrastructure in the country. The market size for 2023 is US$ 528.47 Bn.
Regional analysis
The Western region dominated the Saudi Arabia pharmaceutical drugs market in 2022 owing to presence of major healthcare facilities and hospitals in cities like Jeddah and Makkah. However, the Central region is expected to be the fastest growing market during the forecast period with rising initiative by the government to strengthen healthcare infrastructure in Riyadh city.
Key players
Key players operating in the Saudi Arabia pharmaceutical drugs market are SPIMACO, Tabuk Pharmaceuticals Manufacturing Co., Julphar, Jamjoom Pharma, GlaxoSmithKline plc, Pfizer Inc., Novartis AG, and Sanofi. These players are focusing on expansion of their manufacturing facilities and strengthening distribution network to cater to the growing domestic demand.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
