The SaudiArabia pharmaceutical market is estimated to be valued at US$ 5,209.5Mn by 2016 end and is expected to expand at a CAGR of 9.0% over the forecast
period (2016–2026). The significant rise in lifestyle-related diseases and the
developments in healthcare infrastructure are expected to influence the demand
for pharmaceuticals in Saudi Arabia. In 2016, the Saudi Arabia
pharmaceutical market is anticipated to procure value worth US$ 5,209.5 Mn
at a y-o-y growth of 6.0 % over 2015. The mounting demand for branded drug
products will continue to incite the growth of the Saudi Arabian pharmaceutical
market in 2016.
The demand for pharmaceuticals in Saudi Arabia is expectedto register substantial growth owing to the increasing penetration of health
insurance companies and the rising incidence rate of non-communicable diseases.
Furthermore, the exceptional rise in the per capita income of Saudi Arabia is
also expected to foster the demand for branded pharmaceutical drugs. Another
key factor driving the growth of the pharmaceutical market in Saudi Arabia is
the country’s strategic move to allow 100% FDI in the pharmaceuticals sector.
Although, the shortage of profound indigenous research capacity in the
pharmaceutical industry and the delayed registration of drug and medicine
patents is expected to limit the expansion of the market in 2016 and beyond.
Based on the product type, the pharmaceutical market inSaudi Arabia is expected to witness an upsurge in the prescription-type branded
drug products. In terms of market value, the branded drugs are estimated to
reach US$ 2,760.8 Mn by 2016-end. The demand for generic drugs is projected to
secure steady growth, attributing to the insisting promotion of generic drug
adoption by healthcare insurance providers.
On the basis of the diseases, the pharmaceutical drugs usedfor treatment of cardiovascular diseases will continue exhibiting robust growth
in 2016. The demand for cardiovascular medications will continue to surge due
to the prominence of circulatory disorders in Saudi Arabia. Additionally, the
rising prevalence of disorders related to body sugar levels is expected to make
diabetes a rapidly growing disease-based sub-segment in the Saudi Arabia
pharmaceutical market.
The pharmaceutical market in Saudi Arabia is also segmentedon the basis of distribution channel, where retail pharmacies will continue to
account for 80% market share compared to hospital pharmacies. The westernised
modernisation of retail pharmacies in Saudi Arabia has led to the availability
of a wide range drugs and medicinal products, thereby attaining a considerable
growth in the retail pharmacy sub-segment in 2016 and further.
The rising resource potential in Saudi Arabia is projectedto positively reform the production environment for pharmaceutical
manufacturers. In order to expand the market’s size, structuring alliances with
well-established native companies is predicted to be a key strategy for global pharmaceutical
leaders. The key players in the Saudi Arabia pharmaceutical market include
Novartis AG, SPIMACO, Pfizer Inc., and Glaxosmithkline plc., Jamjoom Pharma,
and Tabuk Pharmaceutical Manufacturing Co. among others.
Long-term Outlook: The Saudi Arabiapharmaceutical market is expected to expand at a CAGR of 9.0% over the forecast
period 2016-2026. In terms of market value, the pharmaceutical market in Saudi
Arabia is estimated to be worth US$ 12,281.4 Mn by the end of forecast period.
Key Segments Covered
- Product Type:
- Prescription Products
- Branded Drugs
- Generic Drugs
- Over The Counter (OTC) Products
- Disease Type:
- Cardiovascular Diseases
- Diabetes
- Cancer
- Obesity
- Infectious Diseases
- Other Diseases
- Distribution Channel:
- Hospital Pharmacies
- Retail Pharmacies
Information Source:
