Report Overview

Saudi Arabia Pharmaceutical Market - Industry Trends & Forecast Report 2028

Saudi Arabia pharmaceutical market stands at USD 10,849.4 million in 2021, and it is expected to reach to USD 19,764.8 million in 2028 at a CAGR of 9.3% during the forecast period of 2022-2028. Owing to the rapid reforms in the healthcare sector of Saudi Arabia, increasing strategic agreements among the market players, and breakthrough drug launches. Saudi Arabia is focusing on broadening the local manufacturing capabilities of the country, which leads to an impressive market growth rate of the Saudi Arabia pharmaceutical market.

Pharmaceutical Overview

Saudi Arabia’s pharmaceutical drugs market entails medicinal products sold as patented/prescription drugs and OTC in hospitals and retail pharmacies for different ailments. Patented products are available as branded drugs, whereas generic drugs include both branded generics and non-branded generics. Branded generics and non-branded generics are used for the treatment of patients suffering from an array of disorders, including cardiovascular, musculoskeletal, oncology, metabolic disorders, gastrointestinal, urogenital, respiratory, dermatology, ophthalmology, hematology, and other disorders. The regional pharmaceutical market was already witnessing an impressive growth rate. Moreover, the breakout of the COVID-19 pandemic further accelerated the market's growth rate.

Saudi Arabia Pharmaceutical Market

Growth Drivers 

Rapid and Intensive Reforms by Saudi Arabian Government and Multinational Companies in Healthcare Sector

Government and Multinational companies in Saudi Arabia are working on bettering the healthcare sector, which is expected to lift up the growth of the Saudi Arabia pharmaceutical market's growth rate over the forecast period. Throughout 2020, numerous high-profile agreements and collaborations were declared in the pharmaceutical sector. For instance- In 2020, Grifols, a Spanish pharmaceutical company, signed an agreement with the Saudi sovereign wealth fund, the Public Investment Fund, to start manufacturing blood-plasma based medicines. This collaboration will help Saudi develop plasma collection and donation centers and production facilities. The key players are emphasizing launching pharmaceutical drugs with better therapeutic effects, which is expected to propel the growth rate of the pharmaceutical market over the forecast period.

Growth Restraint

Lack of Research and Development Activities Coupled With High Reliance On Imports and Frequent Drug Recalls

Local drug manufacturing capabilities are highly dependent upon the research and development activities. Therefore, the absence of a well-established and innovative R&D capability and patent protection through reliable intellectual property policies hinders the growth of the sector. It may be due to the lack of cooperation between academia, research institutes, and the pharma companies, thus less focus on developing new products. Local drug producers have good capabilities to produce conventional dosage forms within the generics market, like tablets and capsules, but lack in non-conventional forms, such as inhalers, biologicals, and plasma-derived products. Thus, the poor R&D investments poor outputs are due to a shortage of skilled personnel, inadequate technical knowledge, poor infrastructure, and lax regulations. Consequently, there is a heavy dependence on imports from other countries for pharmaceutical requirements. Moreover, the rising instances of drug recalls and withdrawals by Saudi’s Health Ministry will act as a market impeding factor in upcoming years.

Saudi Arabia Pharmaceutical Market – By Drug Type

Based on the drug type, the Saudi Arabia pharmaceutical market is segmented into generic and branded drugs. Amidst the segmentation, the branded drugs lead in the market share due to the strong preference and trust of the wealthy population of Saudi Arabia on the branded drugs rather than their generic counterparts. The generic segmentation is growing robustly due to increasing awareness about them, lower costs and government initiatives for their promotion, and their growing demand due to higher penetration of health insurance coverage.

Saudi Arabia Pharmaceutical Market – By Product Type

Based on the product type, the regional pharmaceutical market can be segmented into two prescription drugs and OTC drugs. Over-the-Counter (OTC) drugs are legally allowed to be sold by pharmacists without the need for any medical prescription. In contrast, prescription drugs must be prescribed by a medical practitioner. Technically, all drugs are OTC until they are marked explicitly as prescription-only drugs. Prescription drugs account for a larger share in the regional pharmaceuticals market of Saudi Arabia, followed by the OTC drugs owing to higher individual preference for clinical prescriptions.

Saudi Arabia Pharmaceutical Market – By Application

Based on the application, the regional pharmaceutical market is segmented into the cardiovascular, musculoskeletal, oncology, anti-infective, metabolic disorder, central nervous system, gastrointestinal, respiratory, hematology, dermatology, ophthalmology, and others (nutraceutical, dental, and veterinarian). Amidst the segmentation, the chronic diseases segment like the cardiovascular and musculoskeletal segment accounted for the highest market share due to the rising geriatric population and the growing prevalence of chronic diseases in the region.

Saudi Arabia Pharmaceutical Market – By Distribution Channel

Based on the distribution channel, the regional pharma pharmaceutical market can be segmented into the hospital pharmacy, retail pharmacy, and online pharmacy. In Saudi Arabia, the retail pharmacies category held the largest share of the pharmaceutical market in 2021. The online pharmacy segment is expected to grow at the fastest rate during the forecast period. The hospital pharmacies segment is predicted to develop significantly over the forecast period, owing to the rising demand for generic medications, which is being supported by increased health insurance penetration.

Competitive Landscape 

The key players dominating the Saudi Arabia pharmaceutical market are Pfizer Inc., Sanofi S.A., AstraZeneca, GlaxoSmithKline Plc, Life Care group of Pharmacies, Baxter International Inc., Planet Pharmacies (Zahrat Al Rawdah), Tadawi Pharmacies, Al Nahdi medical, Al-Safwwa Pharmacy, Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Jamjoom Pharmaceuticals Co., Jhulphar and other prominent players. The market players maintain their dominance by undergoing strategic agreements with multinational pharmaceutical companies.

Recent Development

• In March 2021: The Saudi Arabia Ministry of Health signed an agreement with the French company Sanofi, to begin with, the manufacturing of insulin products in Saudi to help fight diabetes and with the ultimate aim to intensify production and export to neighboring countries in the region.

• In May 2021: Japanese drug manufacturing giant Takeda announced its interest in Saudi Arabia to boost its global sales by more than 50% over the next decade. Over the next two years, Takeda is set to launch five new products in Saudi Arabia.

Scope of Report

By Drug Type

• Generic Drugs

• Branded Drugs

By Product Type

• Prescription Drugs

• Over-the-counter (OTC) Drugs

By Application

• Cardiovascular

• Musculoskeletal

• Oncology

• Anti-infective

• Metabolic Disorder

• Central Nervous System

• Gastrointestinal

• Respiratory

• Hematology

• Others (Dermatology, Ophthalmology, Nutraceutical, Dental, and Veterinarian)

By Distribution Channel

• Hospital Pharmacy

• Retail Pharmacy

• Online Pharmacy

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. 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. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Pharmaceutical Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Recent Development/Technological Landscape
   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
5. Saudi Arabia Pharmaceutical Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Drug Type
         1. Generic Drugs
         2. Branded Drugs
      2. By Product Type
         1. Prescription drugs
         2. Over the Counter Drugs
      3. By Application
         1. Cardiovascular
         2. Musculoskeletal
         3. Oncology
         4. Anti-infective
         5. Metabolic Disorder
         6. Central Nervous System
         7. Gastrointestinal
         8. Respiratory
         9. Hematology
         10. Others (Dermatology, Ophthalmology, Nutraceutical, Dental, and Veterinarian)
      4. By Distribution Channel
         1. Hospital Pharmacy
         2. Retail Pharmacy
         3. Online Pharmacy
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of COVID-19 on Saudi Arabia Pharmaceutical Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Pfizer Inc.
   2. Sanofi S.A.
   3. AstraZeneca
   4. GlaxoSmithCline Plc
   5. Life Care group of Pharmacies
   6. Baxter International Inc.
   7. Planet Pharmacies (Zahrat Al Rawdah)
   8. Tadawi Pharmacies
   9. Al Nahdi medical
   10. Al-Safwwa Pharmacals
   11. Tabuk Pharmaceuticals
   12. Hikma Pharmaceuticals PLC
   13. Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO)
   14. Jamjoom Pharmaceuticals Co.
   15. Jhulphar
   16. Other Prominent Players.
9. Key Strategic Recommendations

List of Figures

 Figure 1       Saudi Arabia Pharmaceutical Market Segmentation

Figure 2        Saudi Arabia Pharmaceutical Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Saudi Arabia Pharmaceutical Market Size, By Value (USD Million), 2018-2028

Figure 5        Saudi Arabia Pharmaceutical Market Share, By Drug Type, By Value, 2018-2028

Figure 6        Saudi Arabia Pharmaceutical Market Share, By Product Type, By Value, 2018-2028

Figure 7        Saudi Arabia Pharmaceutical Market Share, By Application, By Value, 2018-2028

Figure 8        Saudi Arabia Pharmaceutical Market Share, By Distribution Channel, By Value, 2018-2028

List Of Tables

Table 1         Saudi Arabia Pharmaceuticals Market Size, By Drug Type, By Value, 2018-2028

Table 2         Saudi Arabia Pharmaceuticals Market Size, By Product Type, By Value, 2018-2028

Table 3         Saudi Arabia Pharmaceuticals Market Size, By Distribution Channel, By Value, 2018-2028

Table 4         Saudi Arabia Pharmaceuticals Market Size, By Region, By Value, 2018-2028

Table 5         Pfizer Inc. Company Overview

Table 6         Pfizer Inc. Financial Overview

Table 7         Sanofi S.A. Company Overview

Table 8         Sanofi S.A. Financial Overview

Table 9         Glaxosmithcline Plc Company Overview

Table 10        Glaxosmithcline Plc Financial Overview

Table 11        Life Care Group of Pharmacies Company Overview

Table 12        Life Care Group of Pharmacies Financial Overview

Table 13        Planet Pharmacies (Zahrat Al Rawdah) Company Overview

Table 14        Planet Pharmacies (Zahrat Al Rawdah) Financial Overview

Table 15        Al Nahdi Medical Company Overview

Table 16        Al Nahdi Medical Financial Overview

Table 17        Al-Safwwa Pharmac Company Overview

Table 18        Al-Safwwa Pharmac Financial Overview

Table 19        Tabuk Pharmaceuticals Company Overview

Table 20        Tabuk Pharmaceuticals Financial Overview

Table 21        Hikma Pharmaceuticals Plc Company Overview

Table 22        Hikma Pharmaceuticals Plc Financial Overview

Table 23        Saudi Pharmaceutical Industries & Medical Appliances Corporation (Spimaco) Company Overview

Table 24        Saudi Pharmaceutical Industries & Medical Appliances Corporation (Spimaco) Financial Overview

Table 25        Jamjoom Pharmaceuticals Co. Company Overview

Table 26        Jamjoom Pharmaceuticals Co. Financial Overview

Table 27        Jhulphar Company Overview

Table 28        Jhulphar Financial Overview