The pharmaceutical drugs market in Saudi Arabia has been witnessing high growth in recent years. Pharmaceutical drugs are medicines used to diagnose, treat, or prevent disease and its symptoms. Increasing prevalence of chronic diseases such as cancer, diabetes, cardiovascular diseases, neurological disorders, and respiratory diseases has fueled the demand for pharmaceutical drugs in the country. Moreover, implementation of various healthcare reforms focusing on localized drug manufacturing to achieve self-sufficiency has created lucrative opportunities in this market. Advancements in fields of biotechnology and drug discovery & development are further propelling market expansion.
The Saudi Arabia Pharmaceutical drugs market is estimated to be valued at US$ 12.60 billion in 2023 and is expected to exhibit a CAGR of 7.6% during the forecast period (2023-2030).
The Pharmaceutical Drugs Industry in Saudi Arabia caters to a large patient pool grappling with both communicable and lifestyle diseases. Rising access to healthcare, increasing healthcare expenditure, growing per capita income, and expanding medical insurance coverage are some of the key factors boosting uptake of pharmaceutical drugs. Manufacturers are investing in R&D to develop novel drugs with better efficacy and fewer side-effects to address the high unmet needs. This is anticipated to strengthen the market position over the coming years.
Key Takeaways
The major players operating in the Saudi Arabia Pharmaceutical Drugs market include Pfizer Inc., Sanofi S. A., Daewoong Pharmaceutical Co., GlaxoSmithKline Plc., AstraZeneca Plc, Baxter International Inc., Astellas Pharma, Life Care Group of Pharmacies, Tadawi Pharmacies, Planet Pharmacies (Zahrat Al Rawdah), Al-Safwwa Pharmacy, Al Nahdi Medical, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Jamjoom Pharmaceuticals Co., Julphar, Biocon Limited, and BeiGene.These players are engaged in launching new drugs and expanding their product portfolios through collaborations and acquisitions.
The market provides lucrative opportunities for both international and domestic players in segments like oncology, immunology, and cardiology due to rising disease incidence. Manufacturers can also foray into specialized therapeutics and orphan drugs with attractive margins.
Advancements in fields such as biologics, gene therapy, regenerative medicine, and nanotechnology are revolutionizing the drug development process. Introduction of technologies like AI and machine learning can facilitate drug discovery and precision medicine to address the growing needs of the Saudi population.
Market drivers
The Saudi Arabia Pharmaceutical Drugs Market Size and Trends is primarily driven by the aging population, increasing healthcare spending, universal healthcare initiatives, and government support for local production. The Vision 2030 reforms aiming to curb dependency on oil exports and diversify the economy into non-oil sectors such as pharmaceuticals through initiatives like Sagia Licensing Program provide a big impetus. Furthermore, the high prevalence of lifestyle-related diseases creates sustained demand for novel pharmaceuticals over the forecast period.
Current challenges in Saudi Arabia Pharmaceutical Drugs Market:
The Saudi Arabia pharmaceutical drugs market is facing few major challenges which are hindering its growth. One of the key challenges is lack of local manufacturing capabilities. Majority of drugs are imported which increases the overall cost of drugs and dependency on other countries. Secondly, rising healthcare costs due to non-communicable diseases like diabetes and cancer are putting pressure on the national healthcare system. Thirdly, limited guidance on pricing of medicines compared to developed markets negatively impacts investment decisions in R&D. Lastly, lack of effective intellectual property rights enforcement can discourage innovation in the long run.
SWOT Analysis
Strength: Growing healthcare spending from the government and presence of universal public healthcare system increases access and demand for pharmaceutical drugs.
Weakness: Dependency on imports for active pharmaceutical ingredients and lack of local manufacturing scale raises supply risks.
Opportunity: Potential to promote local manufacturing and knowledge transfer partnerships to strengthen the healthcare ecosystem.
Threats: Global economic uncertainties and price controls without consideration of high R&D costs can impact profitability of innovator companies.
The geographical region accounting for the largest share in terms of value in the Saudi Arabia pharmaceutical drugs market is Western province. It contributes over 40% of the total market revenue owing to concentration of population in cities like Jeddah and Makkah. The fastest growing region is expected to be Eastern province led by infrastructure developments around the industrial city of Dammam and expansion of medical facilities.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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