The Saudi Arabia Pharmaceutical Drugs Market is Estimated To Witness High Growth Owing To Growing Generic Drug Trends

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The Saudi Arabia Pharmaceutical Drugs Market is estimated to be valued at US$ 528.47 Bn in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Pharmaceutical drugs include medicines used to treat various diseases and medical conditions. They are available in various forms such as tablets, capsules, liquids, creams, gels and intravenously injectables. The pharmaceutical drugs market in Saudi Arabia caters to a wide range of therapeutic segments including cardiovascular, oncology, anti-diabetics, analgesics and antibiotics. Growing prevalence of chronic diseases and increasing healthcare expenditure are the major factors driving the growth of the market.

Market key trends:
One of the key trends contributing to the growth of Saudi Arabia pharmaceutical drugs market is the rising adoption of generic drugs. Generic drugs are identical or bioequivalent to a brand name drug in dosage form, safety, strength, route of administration, quality and performance characteristics. However, they are generally less expensive than the brand name counterparts. Increasing healthcare costs have prompted patients and payers to shift towards more affordable generic alternatives. According to estimates, generic drugs usage in Saudi Arabia grew at a CAGR of 10% from 2012 to 2017 and currently account for around 65-70% of total drugs dispensed in the country. This growing preference for low-cost generic drugs over expensive branded options is expected to support the market growth over the forecast period.

Porter's Analysis
Threat of new entrants: The threat of new entrants in the Saudi Arabia pharmaceutical drugs market is moderate. Establishing manufacturing facilities and obtaining regulatory approvals requires large capital investments and resources which act as a entry barrier. However, developing generic drugs has lower entry barriers.

Bargaining power of buyers: The bargaining power of buyers is high in the Saudi Arabia pharmaceutical drugs market. Pharmaceutical companies have to compete intensely based on pricing, product differentiation and service quality to cater to the large number of buyers in the market including private and public hospitals, pharmacies etc.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While active pharmaceutical ingredients and raw material suppliers play a crucial role, their dependence on a limited number of pharmaceutical companies for offtake also balance out their negotiating power.

Threat of new substitutes: The threat of new substitutes is moderate given the stringent regulatory framework around introducing new drug molecules and therapeutic areas in Saudi Arabia. However, generics continue to pose a threat of substitution.

Competitive rivalry: The competitive rivalry is high given the presence of global as well as local pharmaceutical manufacturers catering to the large Saudi Arabia pharmaceutical drugs market.

SWOT Analysis
Strength: The Saudi Arabia pharmaceutical drugs market is supported by the large population size of over 30 million as of 2022 and rising healthcare expenditure. The government is increasing focus on healthcare infrastructure and promoting local manufacturing.
Weakness: High dependency on imports for medical devices and active pharmaceutical ingredients. Low capacity utilization of local manufacturing facilities indicates domestic supply challenges.
Opportunity: Growing geriatric population, rising prevalence of chronic diseases like diabetes and cancer provide new growth avenues. Government initiatives to increase local production through joint venture routes can be leveraged.
Threats: Price controls and stringent regulatory norms increase operational challenges. Economic uncertainties and geo-political tensions impact the overall investment scenario.

Key Takeaways
The global Saudi Arabia Pharmaceutical Drugs Market Demand is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing prevalence of chronic diseases and government focus on healthcare sector development. By 2030, the overall market size is estimated to reach US$ 1,125.94 Bn.

Regional analysis: The western region dominated the Saudi Arabia pharmaceutical drugs market in 2022 with over 35% share owing to presence of major cities like Jeddah and Makkah with large healthcare infrastructure and population. However, central region is expected to witness fastest growth during the forecast period supported by new hospital projects under the government's healthcare reforms.

Key players operating in the Saudi Arabia Pharmaceutical Drugs market are SPIMACO, Tabuk Pharmaceuticals Manufacturing Co., Julphar, Jamjoom Pharma, GlaxoSmithKline plc, Pfizer Inc., Novartis AG, and Sanofi. SP
For more insights, Read-
https://www.insightprobing.com/saudi-arabia-pharmaceutical-drugs-market-size-and-share/

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