The global Saudi Arabia pharmaceutical drugs market is estimated to be valued at US$ 10,191.4 million in 2020 and is expected to exhibit a CAGR of 7.3% over the forecast period, 2020-2027, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The Saudi Arabia pharmaceutical drugs market includes a range of medications and treatments used for various ailments and diseases. These drugs cater to a wide range of medical conditions, including cardiovascular diseases, respiratory disorders, infectious diseases, and cancer, among others. The market encompasses both prescription drugs and over-the-counter (OTC) drugs.
The utilization of pharmaceutical drugs has increased significantly in Saudi Arabia due to the rising prevalence of chronic diseases and the growing aging population. The government's focus on improving healthcare infrastructure, increasing healthcare expenditure, and encouraging investments in the pharmaceutical sector has also contributed to the market growth. Additionally, the demand for generic drugs has increased, as they offer cost-effective alternatives to branded drugs.
B) Market Dynamics:
Driver 1: Increasing Healthcare Expenditure
Saudi Arabia has been focusing on improving its healthcare infrastructure and services. The government has increased its healthcare expenditure to enhance accessibility and affordability of healthcare services for its population. This increased expenditure has led to the growth of the pharmaceutical drugs market, as more resources are allocated towards the purchase of medications and treatments.
For example, the Ministry of Health in Saudi Arabia announced a budget of US$ 32 billion for healthcare in 2020, a significant increase compared to the previous year. This increased spending is expected to drive the demand for pharmaceutical drugs in the country.
Driver 2: Rising Prevalence of Chronic Diseases
The prevalence of chronic diseases such as diabetes, cardiovascular diseases, respiratory disorders, and cancer has been increasing in Saudi Arabia. This can be attributed to various factors such as sedentary lifestyles, unhealthy diets, and aging population.
For instance, according to the International Diabetes Federation, in 2019, the number of adults living with diabetes in Saudi Arabia was estimated to be around 4.9 million. This increasing prevalence of chronic diseases has resulted in a higher demand for pharmaceutical drugs to manage and treat these conditions.
C) SWOT Analysis:
Strengths:
1. Strong government support for healthcare infrastructure development
2. Increasing healthcare expenditure
Weaknesses:
1. Dependence on imports for a significant portion of pharmaceutical drugs
2. Limited domestic manufacturing capabilities
Opportunities:
1. Growing demand for generic drugs
2. Increasing focus on research and development in the pharmaceutical sector
Threats:
1. Stringent regulations and pricing policies
2. Competition from international pharmaceutical companies
D) Key Takeaways:
Ø The global Saudi Arabia Pharmaceutical Drugs Market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period, due to increasing healthcare expenditure and the rising prevalence of chronic diseases.
Ø In terms of regional analysis, Saudi Arabia is expected to be the fastest-growing and dominating region in the pharmaceutical drugs market. This can be attributed to the government's focus on improving healthcare infrastructure, increasing healthcare expenditure, and encouraging investments in the pharmaceutical sector.
Paragraph 3: Key players operating in the global Saudi Arabia pharmaceutical drugs market include Pfizer Inc., Sanofi S. A., GlaxoSmithKline Plc., AstraZeneca Plc, Baxter International Inc., 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., and Julphar. These companies play a crucial role in driving innovation and meeting the growing demand for pharmaceutical drugs in Saudi Arabia.
The significant rise in lifestyle-related diseases and the developments in healthcare infrastructure are expected to influence the demand for pharmaceuticals in Saudi Arabia.
Another key factor driving the growth of the pharmaceutical market in Saudi Arabia is the country's strategic move to allow 100% FDI in the pharmaceuticals sector.
Although, the shortage of profound indigenous research capacity in the pharmaceutical industry and the delayed registration of drug and medicine patents is expected to limit the expansion of the market in 2016 and beyond.Request a Sample Report with Table of Contents and Figures: https://www.futuremarketinsights.com/reports/sample/rep-gc-1733Based on the product type, the pharmaceutical market in Saudi Arabia is expected to witness an upsurge in the prescription-type branded drug products.
In terms of market value, the branded drugs are estimated to reach US$ 2,760.8 Mn by 2016-end.
The demand for generic drugs is projected to secure steady growth, attributing to the insisting promotion of generic drug adoption by healthcare insurance providers.On the basis of the diseases, the pharmaceutical drugs used for treatment of cardiovascular diseases will continue exhibiting robust growth in 2016.
Additionally, the rising prevalence of disorders related to body sugar levels is expected to make diabetes a rapidly growing disease-based sub-segment in the Saudi Arabia pharmaceutical market.The pharmaceutical market in Saudi Arabia is also segmented on the basis of distribution channel, where retail pharmacies will continue to account for 80% market share compared to hospital pharmacies.
