Prescription Drugs - Saudi Arabia

Saudi Arabia

In Saudi Arabia, the Prescription Drugs market is forecasted to achieve a revenue of US$6.47bn by the year 2024.
It is expected that this revenue will experience an annual growth rate of 5.56% (CAGR 2024-2029), leading to a market volume of US$8.48bn by 2029.
In a global context, United States is projected to generate the highest revenue in this market, with an estimated 2024 revenue of US$358.90bn.
When considering the total population, the per person revenue in Saudi Arabia is forecasted to be US$172.60 in 2024.
The Saudi Arabian market for prescription drugs is experiencing a surge in demand for specialized medications due to an aging population and increasing prevalence of chronic diseases.

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

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Analyst Opinion

The Prescription Drugs (Pharmacies) market in Saudi Arabia is experiencing significant growth due to various factors.

Customer preferences: Customers in Saudi Arabia have shown a strong preference for prescription drugs from pharmacies. This is mainly because pharmacies in the country offer a wide range of prescription drugs, making it convenient for customers to find the medications they need. Additionally, pharmacies in Saudi Arabia are known for their high-quality products and reliable services, which further attract customers to purchase prescription drugs from them.

Trends in the market: One of the key trends in the Prescription Drugs (Pharmacies) market in Saudi Arabia is the increasing demand for chronic disease medications. With the rising prevalence of chronic diseases such as diabetes, hypertension, and cardiovascular diseases in the country, there is a growing need for prescription drugs to manage these conditions. As a result, pharmacies in Saudi Arabia are witnessing a surge in the demand for medications used in the treatment of chronic diseases. Another trend in the market is the growing popularity of online pharmacies. With the increasing penetration of internet and smartphones in Saudi Arabia, more and more customers are turning to online pharmacies to purchase their prescription drugs. Online pharmacies offer the convenience of doorstep delivery and often provide discounts and promotions, making them an attractive option for customers.

Local special circumstances: Saudi Arabia has a rapidly growing population, which is contributing to the increasing demand for prescription drugs. The country has witnessed significant population growth in recent years, driven by factors such as high birth rates and immigration. This has resulted in a larger customer base for pharmacies, leading to higher sales of prescription drugs. Furthermore, the government of Saudi Arabia has been actively promoting the healthcare sector in the country. The government has implemented various initiatives to improve access to healthcare services, including the provision of affordable medications. This has created a favorable environment for the growth of the Prescription Drugs (Pharmacies) market in Saudi Arabia.

Underlying macroeconomic factors: The strong economic growth in Saudi Arabia is also driving the growth of the Prescription Drugs (Pharmacies) market. The country's economy has been diversifying away from oil, with increased investments in sectors such as healthcare. This has resulted in higher disposable incomes and increased healthcare spending, including the purchase of prescription drugs. Additionally, the government's focus on healthcare infrastructure development is contributing to the growth of the market. The government has been investing in the construction of hospitals, clinics, and pharmacies across the country, creating more opportunities for the sale of prescription drugs. In conclusion, the Prescription Drugs (Pharmacies) market in Saudi Arabia is experiencing significant growth due to customer preferences for pharmacies, increasing demand for chronic disease medications, the growing popularity of online pharmacies, the country's rapidly growing population, government initiatives to promote healthcare, and the strong macroeconomic factors such as economic growth and healthcare infrastructure development.

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.