|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 7.34
Billion
|
|
CAGR (2025-2030)
|
9.53%
|
|
Fastest Growing Segment
|
Over-the-Counter Products
|
|
Largest Market
|
Western
|
|
Market Size (2030)
|
USD 12.67 Billion
|
Market Overview
Saudi
Arabia Pharmacy Retail market was valued at USD 7.34 Billion in 2024 and is expected to grow to USD 12.67 Billion by 2030 with
a CAGR of 9.53%. The Saudi Arabia Pharmacy Retail market is
primarily driven by several key factors, including the increasing demand for
healthcare services, particularly due to the country's growing and aging
population. Chronic diseases like diabetes, cardiovascular conditions, and
respiratory illnesses are becoming more prevalent, leading to a higher demand
for pharmaceutical products. As a part of this, according to a recent study,
as of 2024, diabetes has emerged as a significant public health issue, with an
estimated 18.5% of Saudi individuals having the disease. Also, government
initiatives like Vision 2030 aim to improve the overall healthcare
infrastructure, driving growth in the retail pharmacy sector. The rise in
health awareness among consumers and a shift towards self-medication also
contribute to market expansion. Also, the increasing availability of online
pharmacies and e-commerce platforms further boosts the retail sector by
providing convenient access to medicines and healthcare products. These
combined factors position Saudi Arabia’s pharmacy retail market for sustained
growth.
Key Market Drivers
Large
Pool of People Suffering from Cardiovascular Disease
A large and growing pool of people
suffering from cardiovascular diseases (CVD) is a significant driver of the
Saudi Arabia pharmacy retail market. CVD, including heart disease and stroke,
is increasingly prevalent due to lifestyle factors such as unhealthy diets,
physical inactivity, and high smoking rates. As a part of this, according to
a recent study, as of 2024, the prevalence of adult smoking in Saudi Arabia is
16.5%. There are 4,434,374 adult smokers in Saudi Arabia. In Saudi Arabia, 5.0%
of young people smoke. As the population ages and adopts less healthy
lifestyles, the demand for medications, over-the-counter products, and
heart-related treatments rises, creating a substantial market for pharmacies.
This demand is further fueled by the increased awareness of cardiovascular
health and the growing focus on preventive care. Pharmacies in Saudi Arabia are
playing a critical role in providing easy access to heart disease medications,
supplements, and diagnostic products. Also, the government’s emphasis on
improving healthcare services and tackling non-communicable diseases under
Vision 2030 has enhanced pharmacy retail growth, making it a vital component in
the nation’s healthcare landscape.
Surging
Aging Population
The surging aging population in Saudi Arabia is a key
driver of the pharmacy retail market. As a part of this, according to a
recent study, as of 2022, between 2020 and 2022, the official proportion of
Saudi Arabia's population aged 60 and over varied between 5.59% and 6.9%.
As life expectancy rises, the elderly demographic is expanding rapidly, leading
to a greater need for medications and healthcare products tailored to
age-related conditions. Older populations are more prone to chronic diseases
such as hypertension, diabetes, and arthritis, which increases their reliance
on pharmaceuticals and medical devices. Pharmacies are becoming essential
points of access for these products, offering a variety of prescription and
over-the-counter medications, as well as health monitoring tools like blood
pressure monitors. Also, Saudi Arabia’s healthcare sector is adapting to meet
the specific needs of this aging population through targeted policies and
services. This demographic shift is poised to further fuel the growth of the
pharmacy retail sector, as the elderly require ongoing medical care and
healthcare solutions to maintain quality of life.
Rising
Availability of Specialized and Personalized Medicines
The rising availability of specialized and
personalized medicines is significantly driving the Saudi Arabia pharmacy
retail market. As healthcare advances, there is an increasing shift towards
treatments that are tailored to individual genetic profiles, medical histories,
and specific health conditions. Personalized medicines, including biologics,
gene therapies, and targeted therapies, are becoming more accessible through
pharmacies, catering to a wide range of complex diseases such as cancer,
diabetes, and genetic disorders. This trend is further amplified by the
government's push for improved healthcare infrastructure and the availability
of advanced diagnostic tools. Also, specialized medicines for chronic and rare
conditions are increasingly offered by pharmacies, helping to meet the evolving
demands of patients. With these personalized solutions, patients can expect
more effective treatments with fewer side effects, contributing to the growing
role of pharmacies in providing these high-demand, specialized healthcare
products.
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Key Market Challenges
Regulatory
Complexities
Regulatory complexities pose a significant challenge
to the Saudi Arabia pharmacy retail market. The pharmaceutical sector is
heavily regulated, with strict laws governing the import, distribution, and
sale of medicines. Retail pharmacies must comply with a wide range of
regulations set by the Saudi Food and Drug Authority (SFDA), which can vary
based on product categories, from over-the-counter drugs to prescription
medicines and medical devices. Also, changing regulations and the approval
process for new drugs can create uncertainty, causing delays in product
availability and distribution. Compliance with these regulations can also lead
to higher operational costs for pharmacies, especially when navigating import
restrictions or managing inventory for regulated substances. Also, pharmacies
must stay updated on evolving standards to avoid penalties and ensure consumer
safety, making regulatory adherence a constant challenge in the highly
competitive retail market.
Availability
of Counterfeit Drugs
Counterfeit drugs represent a significant challenge in
the Saudi Arabia pharmacy retail market. The presence of counterfeit
medications in the market poses serious risks to public health, as these
products can be ineffective or harmful. Despite stringent regulations and
controls by the Saudi Food and Drug Authority (SFDA), counterfeit drugs
continue to be an issue, often entering through illegal distribution channels
or unregulated online platforms. These counterfeit products undermine the
integrity of the pharmacy retail market, eroding consumer trust in both local
and international pharmaceutical brands. Retail pharmacies must invest in
advanced technologies, such as anti-counterfeit packaging and secure
distribution systems, to mitigate these risks. Also, the market faces the
challenge of educating consumers about the dangers of counterfeit drugs and
encouraging them to purchase only from trusted, regulated sources. Combatting
counterfeit drugs requires ongoing vigilance, cooperation between authorities,
and enhanced security measures across the entire supply chain.
Key Market Trends
Expansion
of Online Pharmacies
The expansion of online pharmacies is a prominent
trend in the Saudi Arabian pharmacy retail market, driven by increased consumer
demand for convenience and accessibility. E-commerce platforms have become an
essential channel for purchasing medications, health products, and wellness
items, especially as consumers seek a seamless shopping experience. The
COVID-19 pandemic accelerated this shift, as many consumers turned to online
platforms for safety and convenience. Online pharmacies offer the advantage of home
delivery, easy access to hard-to-find medications, and a broad range of health
products, from over-the-counter drugs to dietary supplements. With growing
trust in digital healthcare services, the market is witnessing more pharmacies
adopting e-commerce models, partnering with logistics companies for efficient
delivery, and integrating digital payment systems. This trend is expected to
continue as consumers increasingly prioritize convenience, driving the growth
of the online pharmacy sector in Saudi Arabia.
Shift
Towards Generic Medications
The shift towards generic medications is a significant
trend in Saudi Arabia's pharmacy retail market, driven by several key factors.
Generic drugs offer cost-effective alternatives to branded medications, making
them highly attractive to both consumers and healthcare providers. This
affordability is particularly important in a healthcare system facing
increasing demand due to the rising prevalence of chronic diseases and an aging
population. The Saudi government has been supportive of this shift, encouraging
the use of generics to control healthcare costs and improve access to essential
medicines. As a result, the generic pharmaceutical market in Saudi Arabia is
experiencing robust growth, with projections indicating a significant increase
in market size over the coming years. This trend is expected to continue as the
healthcare landscape evolves towards more sustainable and accessible treatment
options.
Integration
of Health & Wellness Products
The integration of health and wellness products into
Saudi Arabia's pharmacy retail market is a notable trend, driven by increasing
consumer demand for holistic well-being solutions. Pharmacies are expanding
their offerings beyond traditional medications to include dietary supplements,
vitamins, herbal remedies, and personal care items. This shift aligns with a
broader societal focus on preventive healthcare and self-care practices. Major
pharmacy chains, such as Nahdi and Al-Dawaa, are responding to this trend by
diversifying their product ranges and enhancing in-store experiences to cater
to health-conscious consumers. Also, the government's initiatives to promote
healthy lifestyles and the rising prevalence of chronic diseases are further
fueling the demand for wellness products. As a result, pharmacies are becoming
integral destinations for consumers seeking comprehensive health and wellness
solutions, positioning themselves as key players in the evolving healthcare
landscape.
Segmental Insights
Product
Type Insights
Prescribed Drugs dominated the Saudi Arabia Pharmacy
Retail market, driven by the increasing prevalence of chronic diseases such as
cardiovascular conditions, diabetes, and hypertension, which require long-term
medication management. The aging population further contributes to this trend,
as older individuals often need ongoing pharmaceutical care. Also, the strong
regulatory framework ensures that medications for specific and critical
diseases are dispensed only through prescriptions, emphasizing the importance
of professional oversight in treatment. The presence of multinational pharmaceutical
companies supplying branded medications through wholesale partners also
supports the dominance of prescribed drugs in the market. These factors
collectively reinforce the significant role of prescribed medications in Saudi
Arabia's pharmacy retail sector.
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Regional Insights
Western region dominated the Saudi Arabia Pharmacy
Retail market, due to several key factors. Jeddah's status as a major port city
facilitates the importation and distribution of pharmaceutical products,
enhancing market accessibility. Makkah experiences heightened demand for
pharmaceuticals due to the large influx of pilgrims visiting for religious
purposes, particularly during Hajj and Umrah seasons. Also, the Northern & Central
region's is driven by higher population densities in cities like Riyadh and
Tabuk correlate with increased healthcare needs, thereby elevating the demand
for pharmaceuticals, including generics. The Central Region, encompassing
Riyadh, serves as the political, economic, and cultural heart of the country.
Riyadh's status as a major urban center attracts a substantial portion of the
population, driving significant demand for both prescription and
over-the-counter drugs. The concentration of healthcare facilities, research
institutions, and healthcare professionals in these regions further stimulates
the demand for a variety of pharmaceuticals, including generic drugs.
Recent Developments
- In February 2025, Aster
Pharmacy, the retail arm of Aster DM Healthcare, has officially launched
operations in Saudi Arabia with 15 stores across Riyadh, including its flagship
location at Trio Plaza. The opening of ‘Trio’ marks a major milestone for Aster
Pharmacy, introducing a distinctive drive-through concept to the region.
- In February 2025, Bayer
has signed a Memorandum of Understanding (MoU) with Al-Dawaa Medical Services,
one of Saudi Arabia’s largest pharmacy chains, to collaborate on the “Protect
Your Heart” national awareness campaign. The initiative, supported by the
Ministry of Health, aims to promote cardiovascular health across the Kingdom.
- In June 2024, Nahdi
Medical Company, a leading retail pharmacy chain, has been awarded the
"Store Retail Initiative of the Year – Saudi Arabia" at the esteemed
Retail Asia Awards 2024. The recognition was granted for its innovative
Solution Project, which exemplifies the effective use of advanced technology
and data-driven strategies to elevate customer experience, boost sales
performance, and strengthen competitive positioning within the retail pharmacy
sector.
- In September 2024, The
Saudi Export Development Authority (SAUDI EXPORTS), under its "Made in
Saudi" program, has entered into a strategic Memorandum of Understanding
(MoU) with Al Nahdi Medical Company. This collaboration is designed to promote
locally manufactured products by enhancing their visibility and distribution
across Al Nahdi’s expansive pharmacy network, reinforcing the company’s role as
a key player in Saudi Arabia’s pharmaceutical retail industry.
Key Market Players
- Nahdi
Medical Company
- Tadawi
Medical Center
- Atlas
Pharmaceuticals
- CVS
Health
- Walgreens
Boots Alliance, Inc.
- Albertsons
Companies, Inc.
- Rite
Aid Corp.
- The
Jean Coutu Group (PJC) inc.
- Loblaw
Companies Limited
- MedPlus
Health Services Limited
|
By Market Structure
|
By Product Type
|
By Therapeutic Area
|
By Drug Type
|
By Pharmacy Location
|
By Region
|
|
|
- Prescribed Drugs
- Over-the-Counter Products
- Non-Pharmaceutical Products
- Medical Equipment
|
- Cardiovascular
- Anti-Diabetic
- Pain Relief/Analgesics
- Vitamins/Minerals/Nutrients
- Anti-Infective
- Others
|
|
- Street/Mall Based
- Hospital Based
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope:
In this report, the Saudi Arabia Pharmacy Retail
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Saudi Arabia Pharmacy Retail Market, By Market Structure:
o Organized
o Unorganized
- Saudi Arabia Pharmacy Retail
Market, By
Product Type:
o Prescribed Drugs
o Over-the-Counter Products
o Non-Pharmaceutical Products
o Medical Equipment
- Saudi Arabia Pharmacy Retail
Market, By
Therapeutic Area:
o Cardiovascular
o Anti-Diabetic
o Pain Relief/Analgesics
o Vitamins/Minerals/Nutrients
o Anti-Infective
o Others
- Saudi Arabia Pharmacy Retail
Market, By
Drug Type:
o Generic
o Patented
- Saudi Arabia Pharmacy Retail
Market, By
Pharmacy Location:
o Street/Mall Based
o Hospital Based
- Saudi Arabia Pharmacy Retail
Market, By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Pharmacy Retail Market.
Available Customizations:
Saudi Arabia Pharmacy Retail Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Pharmacy Retail Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]