Pharmaceuticals - Saudi Arabia

Saudi Arabia

The revenue in the Pharmaceuticals market in Saudi Arabia is estimated to reach US$5.79bn by the year 2025.
Among the various markets, the largest market share belongs to Oncology Drugs, with a projected market volume of US$1.05bn in 2025.
It is expected that the revenue will witness a compound annual growth rate (CAGR 2025-2029) of 4.60%, resulting in a market volume of US$6.93bn by the year 2029.
In comparison to other countries around worldwide, United States is expected to generate the highest revenue, amounting to US$660.00bn in 2025.
Saudi Arabia is experiencing a surge in the demand for pharmaceuticals as the government invests heavily in healthcare infrastructure.

Key regions: United States, China, Germany, Japan, Europe

Definition:
The Pharmaceuticals market covers remedies used to cure, treat, prevent, and diagnose diseases. These small molecule drugs or biologic medical products may be called drugs, medications, or medicines. Prescription drugs and over-the-counter (OTC) drugs are both included. Next generation therapies are also part of the Pharmaceuticals market and include gene therapy, cell therapy, and nucleic acid therapy. Cell therapies involve the use of living cells to replace or repair damaged tissues within the patient's body, or to modify cells to perform specific functions. Gene therapies focus on altering a patient’s genetic material to regulate the production of certain proteins. Nucleic acid therapies use short strands of DNA or RNA to inhibit the production of harmful proteins associated with diseases and promote the generation of therapeutic proteins. Depending on the regulations in each country, these products are provided by pharmacies, hospitals, physicians, and/or drug stores, and/or they can be bought elsewhere. They may be administered in the form of pills, capsules, gels, ointments, injections, infusions, lozenges, or aerosols/sprays.

Structure:
The market is subdivided into Oncology Drugs, Anti-Diabetes Drugs, Anti-Rheumatic Drugs, Vaccines, Dermatological Drugs, Antiviral Drugs, Immunosuppressants, Bronchodilator Drugs, Sensory Organ Drugs, Anti-Hypertensive Drugs, Anti-Coagulants, Anti-Fibrinolytic Drugs, Multiple Sclerosis Drugs, Lipid-Lowering Agents and Other Pharmaceuticals. The Pharmaceuticals market is organized in markets that cover drugs used in specific medical fields, i.e., medicines for a specific disesase or a certain type of medicine. They include original brands, biosimilars, generics, and orphan drugs.The Oncology Drugs market covers pharmaceutical products specifically developed for the treatment and management of various cancers. The Anti-Diabetes Drugs market covers medications designed to manage blood glucose levels and improve insulin sensitivity in individuals with diabetes. The market Anti-Rheumatic Drugs includes pharmaceuticals specifically developed to alleviate symptoms, reduce inflammation, and modify the progression of rheumatic diseases. The Dermatological Drugs market covers pharmaceuticals formulated to treat and manage a wide range of skin conditions such as eczema, acne, and rosacea. The Antiviral Drugs market includes medications designed to treat viral infections and reducing the severity and duration of symptoms. The Immunosuppressants market covers pharmaceuticals that suppress the immune system's activity. The Bronchodilator Drugs market covers pharmaceuticals designed to relax and widen the airways in the lungs. The Sensory Organ Drugs market covers pharmaceuticals targeting the treatment of disorders and conditions affecting sensory organs such as the eyes, ears and nose. The Anti-hypertensive Drugs market covers pharmaceuticals designed to lower blood pressure levels. The Anti-Coagulants Drugs market covers pharmaceuticals developed to prevent the formation of blood clots or to dissolve existing clots. The Anti-Fibrinolytics Drugs market covers pharmaceuticals designed to inhibit the breakdown of blood clots. The Multiple Sclerosis Drugs market covers pharmaceuticals aimed at managing and modifying the course of multiple sclerosis. The Lipid-Lowering Agents market covers pharmaceuticals developed to reduce levels of cholesterol and other lipids in the blood. The Other Pharmaceuticals market provides information on additional specialties that are not covered by the main markets.

Additional information:
Market values represent the revenues generated by manufacture prices paid to primary vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C), companies (B2B), and governments (B2G).

Company examples: Novartis, Roche, Pfizer, Merck & Co, Johnson & Johnson, AbbVie, Sanofi.

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Currency

Analyst Opinion

The Pharmaceuticals market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Customers in Saudi Arabia have a strong preference for branded drugs over generic alternatives. This is due to the belief that branded drugs are of higher quality and more effective. Additionally, there is a strong demand for over-the-counter (OTC) drugs, particularly for common ailments such as headaches and colds.

Trends in the market: The Saudi Arabian pharmaceuticals market has been growing at a steady pace in recent years, driven by a number of factors. One of the key drivers of growth has been the increasing prevalence of chronic diseases, such as diabetes and hypertension, which has led to increased demand for pharmaceuticals. Additionally, the government has been investing heavily in the healthcare sector, which has helped to boost the pharmaceuticals market. There has also been a trend towards the development of more specialized drugs, particularly in areas such as oncology and rare diseases.

Local special circumstances: One of the key challenges facing the pharmaceuticals market in Saudi Arabia is the regulatory environment. The Saudi Food and Drug Authority (SFDA) has strict regulations in place for the approval and registration of drugs, which can make it difficult for companies to bring new products to market. Additionally, there is a lack of transparency in the regulatory process, which can be a barrier to entry for smaller companies.

Underlying macroeconomic factors: The Saudi Arabian pharmaceuticals market is closely tied to the overall health of the economy. As the economy continues to grow, there is likely to be increased demand for pharmaceuticals, particularly in areas such as chronic disease management. Additionally, the government's continued investment in the healthcare sector is expected to drive further growth in the market. However, the ongoing COVID-19 pandemic has had a significant impact on the healthcare sector, and it remains to be seen how this will affect the pharmaceuticals market in the long term.

Methodology

Data coverage:

Data encompasses B2B, B2G, and B2C spend. Figures are based on drug revenues allocated to the country where the money is spent. Monetary values are given at manufacturer price level excluding VAT.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market. As a basis for evaluating markets, we use financial information of the key players by market. Next, we use relevant key market indicators and data from country-specific associations, such as industry associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. The main driver is healthcare expenditure. Expiring patents and new drugs in the pipeline are also considered.

Additional notes:

Data is modeled in US$ using current exchange rates. The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. This market comprises prescription drugs and all OTC drugs covered in the Statista OTC Pharmaceuticals market. However, in the OTC Pharmaceuticals market, revenues are based on end-consumer prices.