According to the latest market research study published by P&S Intelligence, the Saudi Arabian pharmaceuticals market is poised for significant growth, with projections estimating its value to reach USD 21.8 billion in 2024 and further expand at a compound annual growth rate (CAGR) of 4.5%, culminating in USD 28.3 billion by 2030. This upward trajectory is largely driven by the nation's expanding population and escalating healthcare concerns. In response, the government has been proactive in enhancing and broadening healthcare infrastructure and accessibility, thereby fueling the rapid advancement of the pharmaceutical sector.
A notable
contributor to this growth is the increasing prevalence of chronic diseases,
such as respiratory disorders and diabetes, primarily attributed to lifestyle
changes. For instance, the International Diabetes Federation reported that in
2021, approximately 4,272,100 out of 24,194,300 adults in Saudi Arabia were
living with diabetes. These chronic conditions necessitate ongoing medication
for effective treatment and management, thereby amplifying the demand for
pharmaceutical products.
Key
Insights
Product
Type Analysis
- Prescription Drugs:
- In 2024, prescription drugs
are anticipated to constitute 60% of the market share. This dominance is
propelled by the rising incidence of chronic diseases, including ischemic
heart disease, obesity, and hypertension, which require long-term
medication regimens. Additionally, the presence of multinational
pharmaceutical companies supplying branded medications through wholesale
partners bolsters this segment.
- Over-the-Counter (OTC)
Drugs:
- While prescription drugs
lead in market share, OTC drugs are experiencing faster growth. This
surge is linked to the availability of medications for general
conditions, such as common colds and headaches, which consumers can
purchase without a doctor's prescription.
Distribution
Channel Analysis
- Retail Pharmacies:
- Retail pharmacies are
projected to hold a 45% market share in 2024. Their adoption of modern
retail practices, such as efficient inventory management, organized store
layouts, and enhanced customer service, makes them increasingly appealing
to consumers. Moreover, these pharmacies offer the convenience of
medication refills without necessitating hospital visits.
Indication
Analysis
- Cardiovascular Diseases
(CVDs):
- CVDs are expected to
account for the highest market revenue. A study indicates an overall CVD
prevalence of 1.6% across all provinces in Saudi Arabia, with higher
rates among males (1.9%) compared to females (1.4%). Furthermore, the
National Library of Medicine identifies CVDs as a leading cause of
mortality in the country, responsible for approximately 45.7% of deaths.
The chronic nature of many CVDs necessitates long-term treatment and
careful management, thereby driving demand for related medications.
- Diabetes:
- Diabetes is identified as
the fastest-growing category within the pharmaceuticals market. The
substantial number of adults living with diabetes underscores the
escalating demand for effective diabetic treatments and management solutions.
Regional
Analysis
- Al-Riyadh:
- Al-Riyadh is leading the
market with a 35% share in 2024. This prominence is attributed to its
status as a central hub for major pharmaceutical companies and hospitals.
The province's sophisticated logistics and cold-chain infrastructure
further enhance its attractiveness for pharmaceutical distribution.
- Eastern Region:
- The Eastern Region is
projected to experience a CAGR of 4.8% during the forecast period. This
growth is driven by enhancements in healthcare infrastructure and a
burgeoning population, both of which contribute to increased demand for
pharmaceutical products.
Technological
Advancements
E-Pharmacies:
A
significant trend in the Saudi Arabian pharmaceuticals market is the growing
utilization of e-pharmacies. In 2022, approximately 92% of the population owned
smartphones, facilitating easy access to online medicine ordering platforms.
E-pharmacies offer benefits such as convenient access, home deliveries,
prescription management solutions, product information, and counseling
services, thereby enhancing the consumer experience. Government support for
e-commerce and digitalization further propels the growth of e-pharmacies.
Competitive
Landscape
The Saudi
Arabian pharmaceuticals market is characterized by high competitiveness, with
several major players, including Tabuk Pharmaceuticals and Al Tadawi
Healthcare, actively participating. Government initiatives promoting local
companies, along with insurance and healthcare reforms, have led to an increase
in the number of operating players. Intense competition among pharmaceutical
companies in pricing strategies, supply chain management, and promotional
campaigns further intensifies the market dynamics.
In
summary, the Saudi Arabian pharmaceuticals market is on a robust growth
trajectory, driven by factors such as an increasing prevalence of chronic
diseases, technological advancements like e-pharmacies, and strategic
government initiatives aimed at enhancing healthcare infrastructure and
accessibility. The market's segmentation across product types, distribution
channels, indications, and regions offers diverse opportunities for
stakeholders to capitalize on emerging trends and address evolving healthcare
needs.
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