Report Overview

GCC Retail Pharmacy Market - Industry Trends & Forecast Report, 2029

GCC retail pharmacy market size was estimated at USD 29.68 billion in 2022. During the forecast period between 2023 and 2029, the size of GCC retail pharmacy market is projected to grow at a CAGR of 9.39% reaching a value of USD 50.85 billion by 2029. Major growth drivers for the GCC retail pharmacy market include an increasing birth rate and an influx of expatriate workers. This demographic trend has led to an increasing demand for healthcare services, including pharmaceutical products. and accelerating AI deployment across various sectors. Governments in the GCC region have been investing significantly in their healthcare infrastructure, leading to increased healthcare spending. This has positively impacted on the pharmacy sector, as it translates into higher consumer purchasing power for pharmaceutical products. The pharmaceutical market in the GCC region has been expanding, with more international pharmaceutical companies establishing a presence in these countries. This has contributed to a wider range of available medications and increased competition among retail pharmacies. Another driving factor is that each GCC country has its own regulations governing the pharmaceutical and retail pharmacy sectors. Pharmaceutical companies and retailers must navigate different regulatory frameworks when operating across multiple GCC countries. Also, the retail pharmacy sector in the GCC has been witnessing digital transformation, with the adoption of e-pharmacy platforms and online sales channels. This shift has been accelerated by the COVID-19 pandemic, which prompted consumers to seek more convenient and contactless ways of purchasing medicines and healthcare products.

GCC Retail Pharmacy Market – Overview

The GCC retail pharmacy market refers to the pharmaceutical retail sector operating within the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). This market involves the sale of pharmaceutical products, medical supplies, and healthcare items to consumers through physical retail outlets, online platforms, or a combination of both. The market caters to the growing healthcare needs of the GCC population, encompassing various medications, over-the-counter drugs, and other healthcare essentials. It is influenced by factors such as population growth, increasing chronic diseases, healthcare expenditure, digital transformation, and unique regulatory environments across the GCC countries.

GCC Retail Pharmacy Market

Growth Drivers

Rising Chronic Diseases and Lifestyle-related Conditions

As the GCC population faces an increasing burden of lifestyle conditions, such as diabetes, cardiovascular diseases, and obesity, the demand for pharmaceutical products and medical supplies has surged. The growing awareness of healthcare and a proactive approach to managing these health issues have led to higher demand for medications, over the counter (OTC) drugs, and health-related products. Retail pharmacies play a critical role in providing easy access to essential medicines and healthcare items, thereby supporting the healthcare needs of the GCC population affected by chronic diseases and lifestyle-related conditions.

Restraints

Cost Barrier Could Hinder GCC Retail Pharmacy Market Growth

Many pharmaceutical products and medical supplies in the GCC region are imported from foreign countries. This reliance on imports can lead to supply chain disruptions, delays, and cost fluctuations, especially during global crises or geopolitical tensions. Also, import-dependent markets may face challenges in accessing certain medications and healthcare products due to regulatory barriers or trade restrictions. To achieve sustainable growth, the GCC retail pharmacy market needs to enhance its local manufacturing capabilities and reduce its dependence on imports to ensure a stable and secure supply of pharmaceutical products and medical supplies.

Impact of COVID-19 on GCC Retail Pharmacy Market

COVID-19 pandemic had a positive impact on the GCC retail pharmacy market. During the pandemic, there was an increased demand for pharmaceutical products, medical supplies, and personal protective equipment (PPE) such as masks and sanitizers. Retail pharmacies experienced a surge in online and in-store sales as consumers stocked up on essential healthcare items. However, supply chain disruptions and shortages posed challenges for some pharmacies, leading to price fluctuations and delayed deliveries. Moreover, social distancing measures and lockdowns affected foot traffic in physical stores. The pandemic accelerated the adoption of e-pharmacy platforms, prompting pharmacies to enhance their digital capabilities.

GCC Retail Pharmacy Market

Segmental Coverage

GCC Retail Pharmacy Market – By Product

By product, the GCC retail pharmacy market is divided into Skincare Products, Cold & Flu Medications, Dental Care Products, Weight Loss Supplements, and Vitamins & Dietary Supplements segments.

GCC Retail Pharmacy Market – By Drug Type

Based on drug type, the GCC retail pharmacy market is bifurcated into Over the Counter (OTC) Drugs and Prescription Drugs segments. The prescription drugs segment is expected to hold a higher market share in the GCC retail pharmacy market by drug type during the forecast period. This can be attributed to increasing chronic diseases, growing healthcare awareness, and the need for qualified medical guidance. Government regulations, insurance coverage, and a diverse expatriate population also contribute to its dominance. Chronic conditions necessitate long-term management with prescription medications, leading to higher demand. Consumers prefer prescription drugs with professional guidance for safety and efficacy. Adherence to regulations ensures legality and trust. Health insurance coverage makes prescription drugs more affordable, further boosting their market share.

GCC Retail Pharmacy Market – By Type

On the basis of type, the GCC retail pharmacy market is split into Online and Offline segments. The online segment holds a higher share in the GCC retail pharmacy market by type during the forecast period. This can be attributed to increasing internet penetration and consumer preference for convenience. The online platform offers easy access to a wide range of pharmaceutical products and medical supplies from the comfort of homes, eliminating the need to visit physical stores. Moreover, during the COVID-19 pandemic, consumers shifted to online shopping to avoid contact and exposure, further boosting the online segment's market share. The convenience, accessibility, and safety offered by online pharmacies have made them a preferred choice for many consumers in the GCC region.

Competitive Landscape

Major players operating in the GCC retail pharmacy market include Al Nahdi Medical Company, Julphar Gulf Pharmaceutical Industries, Tadawi General Trading Company, United Pharmacies, Al-Dawaa Pharmacies, Aster Pharmacy, Al Borg Medical Laboratories, BinSina Pharmacy, Al Jishi Corporation, Al-Dawaa Pharmacies Group, Boots Pharmacy, Pharma Zone, Life Pharmacy, Al Nahdi Medical Company, and Al Mojil Drug Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product

• Skincare Products

• Cold and Flu Medications

• Dental Care Products

• Weight Loss Supplements

• Vitamins and Dietary Supplements

By Drug Type

• Over the Counter (OTC) Drugs

• Prescription Drugs

By Type

• Online

• Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. GCC Retail Pharmacy Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing population and increasing life expectancy
         2. Rising chronic diseases and lifestyle-related conditions
      2. Restraints
         1. Dependence on imports
         2. Counterfeit and substandard drugs
      3. Opportunities
         1. E-commerce and digitalization
         2. Health awareness and preventive care
      4. Challenges
         1. Competition from large chains
         2. Price sensitivity and insurance coverage
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. GCC Retail Pharmacy Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product
         1. Skincare products
         2. Cold and flu medications
         3. Dental care products
         4. Weight loss supplements
         5. Vitamins and dietary supplements
         6. Other
      2. By Drug Type
         1. Over the counter (OTC) drugs
         2. Prescription drugs
      3. By Type
         1. Online
         2. Offline
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. GCC Retail Pharmacy Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on GCC Retail Pharmacy Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Al Nahdi Medical Company
   2. Julphar Gulf Pharmaceutical Industries
   3. Tadawi General Trading Company
   4. United Pharmacies
   5. Al-Dawaa Pharmacies
   6. Aster Pharmacy
   7. Al Borg Medical Laboratories
   8. BinSina Pharmacy
   9. Al Jishi Corporation
   10. Al-Dawaa Pharmacies Group
   11. Boots Pharmacy
   12. Pharma Zone
   13. Life Pharmacy
   14. Al Nahdi Medical Company
   15. Al Mojil Drug Company
   16. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       GCC Retail Pharmacy Segmentation   

Figure 2       GCC Retail Pharmacy Market Value Chain Analysis 

Figure 3       Company Market Share Analysis, 2022

Figure 4       GCC Retail Pharmacy Market Size, By Value (USD Billion), 2019–2029 

Figure 5       GCC Retail Pharmacy Market Share, By Product, By Value, 2019–2029

Figure 6       GCC Retail Pharmacy Market Share, By Drug Type, By Value, 2019–2029     

Figure 7       GCC Retail Pharmacy Market Share, By Type, By Value, 2019–2029    

List of Tables

Table 1        GCC Retail Pharmacy Market Size, By Value (USD Billion), 2019–2029

Table 2        GCC Retail Pharmacy Market Size, By Product, By Value, 2019–2029

Table 3        GCC Retail Pharmacy Market Size, By Drug Type, By Value, 2019–2029

Table 4        GCC Retail Pharmacy Market Share, By Type, By Value, 2019–2029

Table 5        Al Nahdi Medical Company Overview

Table 6        Al Nahdi Medical Company Financial Overview

Table 7        Julphar Gulf Pharmaceutical Industries Company Overview

Table 8        Julphar Gulf Pharmaceutical Industries Financial Overview

Table 9        Tadawi General Trading Company Overview

Table 10      Tadawi General Trading Company Financial Overview

Table 11      United Pharmacies Company Overview

Table 12      United Pharmacies Financial Overview

Table 13      Al-Dawaa Pharmacies Company Overview

Table 14      Al-Dawaa Pharmacies Financial Overview

Table 15      Aster Pharmacy Company Overview

Table 16      Aster Pharmacy Financial Overview

Table 17      Al Borg Medical Laboratories Company Overview

Table 18      Al Borg Medical Laboratories Financial Overview

Table 19      BinSina Pharmacy Company Overview

Table 20      BinSina Pharmacy Financial Overview

Table 21      Al Jishi Corporation Company Overview

Table 22      Al Jishi Corporation Financial Overview

Table 23      Al-Dawaa Pharmacies Group Company Overview

Table 24      Al-Dawaa Pharmacies Group Financial Overview

Table 25      Boots Pharmacy Company Overview

Table 26      Boots Pharmacy Financial Overview

Table 27      Al Mojil Drug Company Overview

Table 28      Al Mojil Drug Company Financial Overview

Table 29      Other Prominent Players Company Overview

Table 30      Other Prominent Players Financial Overview