Prescription Drugs - GCC

The GCC Prescription Drugs market is expected to witness significant revenue growth, projected to reach US$12.70bn by 2024.
This growth is anticipated to continue with an annual growth rate of 5.41% (CAGR 2024-2029), resulting in a market volume of US$16.53bn by 2029.
When compared to other global markets, United States is expected to generate the highest revenue, reaching US$358.90bn in 2024.
In terms of per person revenue, the GCC population is expected to generate US$210.40 in 2024.
The GCC region is witnessing a growing demand for prescription drugs due to an aging population and an increase in chronic diseases.

Key regions: Japan, China, Europe, Australia, Canada

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Currency

Analyst Opinion

The Prescription Drugs (Pharmacies) market in GCC has been experiencing significant growth in recent years.

Customer preferences: Customers in the GCC region have shown a strong preference for prescription drugs from pharmacies. This can be attributed to the convenience and accessibility of pharmacies, as well as the trust that customers place in the expertise of pharmacists. Additionally, the increasing prevalence of chronic diseases in the region has led to a higher demand for prescription drugs, further driving the growth of the market.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in GCC is the increasing adoption of e-commerce platforms by pharmacies. This trend has been driven by the growing popularity of online shopping among consumers in the region. Pharmacies are leveraging these platforms to reach a wider customer base and provide a convenient way for customers to purchase prescription drugs. This trend is expected to continue in the coming years, as more pharmacies recognize the potential of e-commerce in the market. Another trend in the market is the rising demand for generic drugs. Generic drugs are more affordable than their branded counterparts, making them a popular choice among cost-conscious consumers. The GCC region has witnessed an increase in the availability and accessibility of generic drugs, which has contributed to their growing popularity. This trend is expected to continue as the healthcare systems in the region focus on cost containment and increasing access to affordable medications.

Local special circumstances: The GCC region has a high prevalence of lifestyle-related diseases such as diabetes and cardiovascular diseases. This has led to a higher demand for prescription drugs to manage these conditions. Additionally, the region has a growing population of elderly individuals, who often require multiple medications to manage their health conditions. These factors have contributed to the growth of the Prescription Drugs (Pharmacies) market in GCC.

Underlying macroeconomic factors: The GCC region has witnessed strong economic growth in recent years, which has contributed to an increase in disposable income among consumers. This has enabled consumers to spend more on healthcare, including prescription drugs. Additionally, the governments in the region have been investing heavily in healthcare infrastructure and services, which has further fueled the growth of the Prescription Drugs (Pharmacies) market. The region's favorable regulatory environment for pharmacies and pharmaceutical companies has also played a role in attracting investment and driving market growth.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. 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 relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.