logo
logo
AI Products 

Saudi Arabia Pharmaceutical Drugs Market is in trends by strong government support

avatar
Prateek Yadav
Saudi Arabia Pharmaceutical Drugs Market is in trends by strong government support

The Saudi Arabia Pharmaceutical Drugs Market comprises a wide range of prescription and over-the-counter drugs that are used to treat various diseases and medical conditions. Key products in this market include antibiotics, analgesics, cardiovascular drugs, anti-diabetic drugs, respiratory drugs, and central nervous system drugs. There is a growing prevalence of lifestyle diseases such as diabetes, cancer, and cardiovascular diseases in the Kingdom, driving the demand for pharmaceutical drugs. The Saudi government has implemented various initiatives to enhance accessibility and affordability of drugs to its citizens. For instance, it spends around 3.7% of its GDP on healthcare annually and provides universal coverage for prescribed drugs.


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).


Key Takeaways


The major players operating in the Saudi Arabia Pharmaceutical Drugs market include Pfizer Inc., Sanofi S. A., Daewoong Pharmaceutical Co., GlaxoSmithKlinePlc., AstraZeneca Plc, Baxter International Inc., Astellas Pharma, Life CareGroup of Pharmacies, Tadawi Pharmacies, Planet Pharmacies (Zahrat Al Rawdah), Al-Safwwa Pharmacy, Al Nahdi Medical, Saudi Pharmaceutical Industries &Medical Appliances Corporation (SPIMACO), Tabuk Pharmaceuticals, HikmaPharmaceuticals PLC, Jamjoom Pharmaceuticals Co., Julphar, Biocon Limited, andBeiGene. These players dominate the market with their comprehensive product portfolios and strong distribution networks across the country.


The Saudi Arabia Pharmaceutical Drugs Market Demand is growing steadily in Saudi Arabia owing to rising healthcare expenditure, an aging population, and increasing lifestyle-related diseases. Various initiatives by the government to promote generic and essential drugs have also boosted the demand. Several international drugmakers are exploring opportunities to expand their presence in the Kingdom to tap into its large and growing pharmaceutical market. Strategic collaborations with local players and investments in manufacturing facilities will be pivotal to gaining market share in Saudi Arabia.


Market key trends


Saudi Arabia Pharmaceutical Drugs Market Size and Trends is the rising adoption of biosimilars. As patents loom over several blockbuster drugs, biosimilars provide an affordable alternative to biologics. They help expand patient access and provide significant cost savings for public and private drug procurement organizations. Saudi Arabia was among the first Gulf countries to develop a regulatory and reimbursement pathway for biosimilars. This will stimulate further biosimilar usage and competition in the coming years.

Porter’s Analysis


Threat of new entrants: The pharmaceutical industry requires high capital investment and lengthy approval processes, which prevents new companies from easily entering the market.

Bargaining power of buyers: Large buyers like hospitals and pharmacy chains negotiate for lower prices and better services, which increases competition.

Bargaining power of suppliers: Suppliers of raw materials and packaging have less bargaining power due to the availability of substitutes and the fragmented nature of suppliers.

Threat of new substitutes: Biological therapies and generics are major substitutes but require large R&D investment and clinical trials.

Competitive rivalry: Large multinational companies compete intensely on product differentiation, advertising, and expanding their product portfolio, which increases costs.


The Saudi Arabia pharmaceutical drugs market is concentrated mainly in major cities like Riyadh, Jeddah, and Dammam, where nearly 70% of the total population resides. These cities are prime hospitals and healthcare hubs in the country and account for over 80% of the total market value. The Eastern region, consisting of provinces like Al-Qatif and Al-Ahsa, is growing at the fastest pace for the pharmaceutical drugs market in Saudi Arabia. This is mainly due to rising healthcare infrastructure like hospitals and private clinics, along with growing population and income levels in these provinces. The private healthcare sector is particularly expanding rapidly to cater to growing demand from patients in the Eastern region.


Geographical Regions


The pharmaceutical drugs market in Saudi Arabia is concentrated primarily in the key cities of Riyadh, Jeddah, and Dammam, which are major healthcare and hospital hubs. These cities account for nearly 70% of the total population and over 80% of the market value. The Eastern region, comprising provinces like Al-Qatif and Al-Ahsa, is emerging as the fastest-growing geographical region for the pharmaceutical drugs market in Saudi Arabia. This is attributed to factors like rapid expansion of private healthcare infrastructure in the form of hospitals and clinics combined with rising population and income levels driving higher healthcare spends in the Eastern region.



Discover the language that resonates with you:



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.

(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )

collect
0
avatar
Prateek Yadav
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more