The global Saudi Arabia pharmaceutical drugs market is estimated to be valued at US$ 10,191.4 Mn in 2020 and is expected to exhibit a CAGR of 7.3% over the forecast period (2020-2027), as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The Saudi Arabia pharmaceutical drugs market refers to the market for medicinal drugs, including prescription drugs, over-the-counter drugs, and generic drugs, in the Kingdom of Saudi Arabia. The market offers a wide range of drugs for various therapeutic areas, including cardiovascular diseases, respiratory diseases, infectious diseases, and others. The market plays a crucial role in providing essential medicines to the population and improving overall healthcare outcomes in the country.
B) Market Key Trends:
One key trend in the Saudi Arabia pharmaceutical drugs market is the rising demand for essential medicines. The increasing prevalence of chronic diseases, such as diabetes, hypertension, and cardiovascular diseases, has led to a higher demand for prescription drugs. Additionally, the outbreak of the COVID-19 pandemic has further emphasized the need for essential medicines to manage and treat the virus. This trend is expected to drive market growth in the coming years.
For example, Pfizer Inc., one of the key players in the Saudi Arabia pharmaceutical drugs market, developed a COVID-19 vaccine (BNT162b2) in collaboration with BioNTech. The vaccine received Emergency Use Authorization (EUA) from the Saudi Food and Drug Administration (SFDA) in December 2020, highlighting the importance of essential medicines in combating the pandemic.
C) Porter's Analysis:
Ø Threat of new entrants: Low - The pharmaceutical industry requires significant investments in research and development, regulatory compliance, and manufacturing facilities. This acts as a barrier to entry for new players, leading to a low threat of new entrants.
Ø Bargaining power of buyers: Moderate - Buyers in the Saudi Arabia pharmaceutical drugs market, such as hospitals, clinics, and pharmacies, have moderate bargaining power due to the availability of multiple suppliers and generic alternatives.
Ø Bargaining power of suppliers: Low - Pharmaceutical drug manufacturers have access to a wide range of active pharmaceutical ingredients (APIs) and raw materials, reducing their dependence on a single supplier and resulting in low bargaining power of suppliers.
Ø Threat of new substitutes: Low - The pharmaceutical drugs market has limited substitutes, especially for prescription drugs, leading to a low threat of new substitutes.
Ø Competitive rivalry: High - The Saudi Arabia Pharmaceutical Drugs Market is highly competitive, with the presence of both multinational pharmaceutical companies and local manufacturers. This results in intense competition among players to gain market share.
D) Key Takeaways:
Ø The global Saudi Arabia pharmaceutical drugs market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period, due to increasing demand for essential medicines and the development of innovative drugs.
Ø Regionally, Saudi Arabia is expected to be the fastest-growing and dominating region in the pharmaceutical drugs market. The government's focus on improving healthcare infrastructure, increasing investments in the pharmaceutical sector, and the rising prevalence of chronic diseases are expected to drive market growth in the country.
Ø Key players operating in the Saudi Arabia pharmaceutical drugs market include Pfizer Inc., Sanofi S.A., GlaxoSmithKline Plc., AstraZeneca Plc, Baxter International Inc., Life Care Group of Pharmacies, Tadawi Pharmacies, Planet Pharmacies (Zahrat Al Rawdah), Al-Safwwa Pharmacy, Al Nahdi Medical, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Jamjoom Pharmaceuticals Co., and Julphar.
In conclusion, the Saudi Arabia pharmaceutical drugs market is poised for significant growth, driven by the increasing demand for essential medicines and the government's focus on improving healthcare infrastructure. However, intense competition among key players and regulatory challenges may pose some obstacles in the market.
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