Saudi Arabia Pharmaceutical Drugs Market is Anticipated to Witness High Growth Owing to Increasing Demand for Specialized Healthcare Facilities

The Saudi Arabia Pharmaceutical Drugs Market consists of various pharmaceutical products majorly comprised of pain killers, antacids, anti-infectives, antidiabetics, antiparkinsonians, neurovascular drugs and gastrointestinal drugs. These pharmaceutical drugs find application in treatment of various diseases and disorders such as cancer, diabetes, cardiovascular disorders, neurological disorders, respiratory diseases and others. The increasing adoption of unhealthy lifestyle including lack of exercise, consumption of junk food and tobacco use has significantly increased prevalence of chronic diseases in Saudi Arabia. As per a report by World Health Organization, prevalence of diabetes is around 30% of the total Saudi population whereas cardiovascular diseases are the leading causes of death. Furthermore, rising geriatric population, advancement in healthcare infrastructure along with growing health awareness has surged the demand for specialized and high quality pharmaceutical drugs in the country.

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., 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 key players collectively account for over 45% of market share and are engaged in new product launches, acquisitions and partnerships to strengthen their market position.

The rising prevalence of chronic diseases in Saudi Arabia has opened new opportunities for market players in disease specific drugs and drug delivery solutions segments. In addition, growing health awareness among population and increasing health expenditures have boosted demand for biosimilars, generic drugs and over the counter drugs.

Geographically, Saudi Arabia pharmaceutical drugs market is dominated by central region owing to higher disposable income and concentration of leading healthcare facilities. However, western and eastern regions are expected to exhibit fastest growth during forecast period led by government investments in healthcare infrastructure development projects. Key pharmaceutical companies are also focused on tapping into opportunities in GCC countries through export of drugs.

Market Drivers
- Rising geriatric population prone to chronic disease suffering - Growing geriatric population in Saudi Arabia has amplified the demand for specialized pharmaceutical drugs for treatment of various age-related illnesses like Alzheimer's, diabetes, cancer etc. As per WHO, geriatrics population in Saudi Arabia is estimated to grow at a CAGR of over 3% during 2019-2050.

Market Restraints
- Stringent regulatory approvals delay market access of new drugs - The Saudi FDA enforced strict regulations similar to USFDA and EMA regarding approval of new drugs and biosimilars. Extensive clinical trials and documentation requirements increase costs and timelines for pharmaceutical companies to launch new products in Saudi Arabia market.

Segment Analysis
The Saudi Arabia Pharmaceutical Drugs Market Regional Analysis is dominated by prescription drugs which holds more than 60% share of the overall market. This is because prescription drugs are required for the treatment of chronic diseases like diabetes, cancer, cardiovascular diseases etc. which have high prevalence in the country. Within the prescription drugs segment, anti-diabetes drugs dominate due to growing burden of diabetes. According to a study, more than 30% of adults aged 30 years or above in Saudi Arabia have diabetes. This has increased the demand for oral hypoglycemic drugs and injected insulin within the overall pharmaceutical market.

The over-the-counter drugs segment holds around 35% share and is growing at a faster rate due to increasing health awareness and easy availability of drugs for pain, fever, cold etc. without a prescription. Cough, cold and allergy preparations within this segment have high demand. The rising consumer preference for self-medication is driving the growth of this segment in the Saudi pharmaceutical market.

Global Analysis
North America region currently dominates the Saudi Arabia pharmaceutical drugs market due to availability of advanced treatment options and presence of major pharmaceutical companies in the US. However, Middle East and Africa region is emerging as the fastest growing market on account of expanding healthcare infrastructure, rising per capita healthcare expenditure and growing focus of international players on this region. Within the Middle East, Saudi Arabia holds the largest market share and is expected to witness high investment opportunities in the coming years. The government is taking initiatives to strengthen local manufacturing capacities and reduce dependence on imported pharmaceutical drugs.