Saudi Arabia Pharmaceuticals Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Pharmaceuticals Market Size

Saudi Arabia Pharmaceuticals Market Trends & Growth Drivers

Increase in Sales via E-Pharmacies Is Key Trend in Market

• One of the major trends in the kingdom is the growing use of e-pharmacies.
• The increase in smartphone usage is fueling this shift, as consumers can effortlessly order and find any type of medicine or drug on online stores.
• In 2022, around 92% of the kingdom’s population had a smartphone.
• E-pharmacies offer convenient access, offers, home deliveries, prescription management solutions, product information, as well as counseling, which help improve the consumer experience.
• Moreover, the government is contributing to the growth of e-pharmacies by supporting e-commerce and digitalization.

Increasing Health Concerns Are Driving Market

• One of the main drivers for the Saudi Arabian pharmaceuticals market is people’s increasing health consciousness as a result of government efforts, internet and TV influence, and campaigns of international organizations.
• This consciousness is increasing health concerns among people, which is further forcing them to have regular checkups.
• Furthermore, the Saudi Arabian government is prioritizing healthcare measures as it acknowledges the significance of early interventions and effective disease management.
• Other factors contributing to the growth of the market are the increasing population and sedentary lifestyle of Saudi Arabia.

Counterfeit Pharmaceuticals Are a Major Challenge

• Counterfeits are one of the major challenges faced by the pharmaceuticals market of Saudi Arabia.
• According to the World Health Organization (WHO), 10% of the medicines offered for sale are counterfeits.
• Fake medicines contain hazardous elements and, often, an improper proper formulation, which can cause critical health problems.
• To stop their sale, the kingdom needs advanced technologies, such as track-trace systems and serialization.
• The Saudi Arabian government participated in Operation Pangea; a global effort coordinated by INTERPOL to protect customers from these medicines.

Saudi Arabia Pharmaceuticals Market Analysis

Product Type Insights

• Prescription drugs hold the larger market share, of 60%, in 2024, and they are expected to do the same in the coming few years.
• With the rise in the incidence of chronic diseases, such as ischemic heart disease, obesity, and hypertension, prescription drug consumption is increasing, as they are needed for the long-term treatment for these conditions.
• Another factor contributing to the dominance of prescription drugs is the presence of multinational pharmaceutical companies, which supply branded medications with the help of wholesale partners.
• The growing old-age population is benefiting the market as it needs an array of medications for the treatment and management of health conditions.
• Moreover, pharmaceuticals are strongly regulated, and OCT drugs for only general conditions, such as common cold and headache, are available.
• All other drugs for specific and critical diseases must be obtained against a doctor’s prescription as their improper dosage or the consumption of the wrong drug can lead to more harm than benefit.

The product types analyzed in this report are:

• Prescription Drugs (Larger Category)
• Over-the-Counter Drugs (Faster-Growing Category)

Distribution Channel Insights

• Retail pharmacies hold the largest market share, of 45%, in 2024.
• These stores are adopting modern retail practices, such as inventory management, organized layouts, and improved consumer service, which is helping them be more appealing to consumers.
• Moreover, consumers do not have to visit the hospital every time they want a refill, as these retail stores offer a wide range of medicines.

The distribution channels included in this report are:

• Retail (Largest Category)
• Online (Fastest-Growing Category)
• Hospital
• Others

Indication Insights

• Cardiovascular diseases account for the highest market revenue, as they are one of the biggest health concerns in Saudi Arabia.
• According to a study, the overall prevalence of cardiovascular diseases is 1.6% across all provinces of Saudi Arabia, with a 1.9% prevalence among males and 1.4% among females.
• Moreover, according to the National Library of Medicine, cardiovascular diseases are one of the leading causes of mortality in Saudi Arabia, accounting for approximately 45.7% of the deaths.
• Many CVDs are chronic issues, requiring long-term treatment and careful management.
• Beta- and alpha-blockers, ACE inhibitors, diuretics, anticoagulants, calcium channel blockers, vasodilators, dopamine, epinephrine and norepinephrine, and digitalis are among the most-widely consumed heart medication.

During the study, we covered the following indications in the report:

• Cardiovascular Diseases (Largest Category)
• Cancer
• Diabetes (Fastest-Growing Category)
• Infectious Diseases
• Obesity
• Others

Regional Analysis

• Al-Riyadh is leading the Saudi Arabian pharmaceuticals market with 35% share in 2024.
• One main factor for this is that Al-Riyadh is a central hub for many big pharmaceutical companies and hospitals.
• Moreover, the logistics and cold-chain infrastructure of Al-Riyadh is sophisticated, which makes it the preferred choice for many companies to distribute their products.
• The Eastern Region is projected to grow at a CAGR of 4.8% in the forecast period.
• This region's enhancing healthcare infrastructure is one of the main reasons for the growth of the market here.
• Moreover, it attracts a large population, which propels the demand for drugs.

The provinces analyzed in the report are:

• Al-Riyadh (Largest Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Fastest-Growing Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Pharmaceuticals Market Share

With the involvement of several big players, such as Tabuk Pharmaceuticals and Al Tadawi Healthcare, the Saudi Arabian pharmaceuticals market is highly competitive. The government is promoting local companies and implementing insurance and healthcare reforms, which is increasing the number of operating players. Moreover, the strong competition among pharmaceutical companies on pricing strategy, supply chain, and promotional campaigns makes the market highly competitive.

Saudi Arabia Pharmaceutical Market News

• In June 2024, Avalon Pharma announced a strategic manufacturing agreement with Al-Dawaa Medical Services Company (DMSCO).
• In February 2021, Tabuk Pharmaceuticals partnered with Prestige Biopharma for the commercialization of Tuzune (trastuzumab biosimilar) in MENA.
• In February 2024, Avalon Pharma raised USD 131 million in initial public offering.
• In August 2023, the National Industrial Development Center signed a tripartite memorandum for understanding with Jubail Pharma and RR Holding Co. to boost the production of excipients and active pharmaceutical ingredients in the kingdom.