Saudi Arabia Generic Drugs Market to grow with a CAGR of 5.12% through 2029
The increasing healthcare infrastructure and a supportive regulatory environment is expected to drive the Saudi Arabia Generic Drugs Market growth in the forecast period, 2025-2029.
According
to TechSci Research report, “Saudi Arabia Generic Drugs Market - By Region, Competition, Opportunities and Forecast, 2029F”, Saudi Arabia Generic Drugs
Market was valued at USD 7.41 billion in 2023 and is anticipated to witness an
impressive growth in the forecast period with a CAGR of 5.12% through 2029. This can be due to collaborations and
partnerships among leading companies with a diverse approach to merge the
expertise of individual companies and to strengthen their position in the
market. Patient
acceptance and awareness play crucial roles in driving the demand for generic
drugs. Patients are often attracted to generic drugs due to their
cost-effectiveness compared to brand-name drugs. Increased awareness of the
potential cost savings motivates patients to choose generic alternatives,
especially in situations where out-of-pocket expenses are a significant
concern. Awareness campaigns and education initiatives can help patients
understand that generic drugs have the same active ingredients, efficacy, and
safety profiles as their brand-name counterparts. When patients are confident
in the equivalency of generic drugs, they are more likely to accept and choose
them. Patient acceptance of generic drugs can be influenced by health insurance
coverage. If insurance plans cover generic medications, patients are more
likely to opt for these cost-effective alternatives, leading to increased
demand. Effective communication between healthcare providers and patients is
essential. When physicians provide clear information about the availability,
benefits, and cost savings associated with generic drugs, patients are more
likely to accept and choose these options. Healthcare systems and policies that
support generic substitution and encourage pharmacies to dispense generic drugs
when available contribute to patient acceptance. Patients may become more
accustomed to generic options through these policies.
In December 2021, Biocon Limited, a global biopharmaceutical company focused on innovation, has announced a strategic partnership with Tabuk Pharmaceutical Manufacturing Company, a prominent pharmaceutical firm in the Middle East and North Africa (MENA) region. The collaboration aims to commercialize specific specialty products in the Middle East. Tabuk Pharmaceuticals, as part of the agreement, will secure marketing authorization for these products and will handle their registration, importation, and promotion in Saudi Arabia and other Middle Eastern countries, including the UAE, Kuwait, Qatar, Oman, Iraq, Jordan, and Lebanon. This collaboration signifies Biocon's expansion into the MENA region and underlines its commitment to making affordable medications accessible to patients globally. In this out-licensing arrangement, Biocon will handle the development and manufacturing of the products, while Tabuk will oversee their commercialization. This partnership marks a significant milestone for Biocon as it builds a robust global product portfolio through direct efforts and strategic collaborations.
Market competition pose challenges in the Saudi Arabia Generic Drugs Market. While competition is generally beneficial for consumers and can drive innovation and efficiency, it also presents certain challenges for industry participants. Intense competition often leads to price erosion, where manufacturers reduce prices to gain a competitive edge. While this benefits consumers in terms of lower prices, it can pose challenges for manufacturers in maintaining profitability and sustaining investments in research and development. Due to price competition, generic drug manufacturers may face thin profit margins. This can limit their ability to invest in research and development, quality control, and other essential aspects of pharmaceutical production. The entry of multiple manufacturers into the market for a particular generic drug can happen quickly after patent expiry. This rapid market entry can lead to a crowded market, intensifying competition and potentially resulting in oversupply.
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Saudi Arabia Generic Drugs Market is segmented based
on Type, Mode of Drug Delivery, Form, Source, Distribution Channel, Application, Region and Company.
Based on application, cardiovascular diseases segment held the largest market share and is predicted to continue expanding over the coming years. Cardiovascular diseases are highly prevalent in Saudi Arabia, there would be a greater demand for medications to manage these conditions. Generic drugs, being cost-effective alternatives, might be preferred by both healthcare providers and patients. Government health initiatives that focus on preventing and managing cardiovascular diseases may contribute to the larger share of this segment. Policies promoting the use of generic drugs for cost savings could influence market dynamics. An aging population is often associated with an increased prevalence of cardiovascular diseases. If Saudi Arabia has an aging population, the demand for cardiovascular medications, including generics, would likely be higher. Cardiovascular medications, when available in generic form, can be more cost-effective for both patients and healthcare systems. This cost advantage may drive the preference for generic drugs within the cardiovascular diseases segment.
The Southern region of Saudi Arabia is experiencing a significant growth rate in the generic drugs market, driven by several key factors. The region has seen a substantial increase in the establishment of healthcare infrastructure, with hospitals and pharmacies expanding their offerings of affordable and accessible generic medications. As healthcare access improves, the demand for cost-effective drug alternatives is rising, particularly in the southern cities like Jeddah, which is a major hub for the pharmaceutical sector. Government initiatives under Saudi Arabia’s Vision 2030 are also playing a vital role, as they promote the growth of the local pharmaceutical industry, including the production and distribution of generic drugs. The government is focused on reducing healthcare costs and increasing self-sufficiency in the pharmaceutical sector, making generic drugs a crucial component of the healthcare strategy. Moreover, the Southern region benefits from its proximity to key logistics and distribution networks, making it an attractive location for pharmaceutical companies to set up production facilities. As a result, there is growing competition in the generic drugs market, which is helping to drive both innovation and affordability.
Some of the major companies
operating in the Saudi Arabia Generic
Drugs Market include:
- Tabuk Pharmaceuticals Manufacturing Co.
- Jamjoom Pharmaceuticals Co.
- Riyadh Pharma
- Al Jazeera Pharmaceutical Industries Ltd (Hikma)
- Pfizer Saudi Company Limited Corporate
- Sanofi Aventis Arabia Co. Ltd.
- Novartis (Saudi Arabia)
- GlaxoSmithKline (Saudi Arabia)
- Novo Nordisk (Saudi Arabia)
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“The Saudi Arabia generic drugs market is
witnessing significant growth, driven by various trends. With an increasing
focus on healthcare affordability and accessibility, generics offer a
cost-effective alternative to brand-name medications. Government initiatives
promoting generic drug usage, such as the "Saudi Food and Drug
Authority" regulations, are also propelling market expansion. A growing
aging population and rising chronic diseases further boost demand for generics.
The COVID-19 pandemic has heightened awareness of healthcare costs, leading
more consumers and healthcare providers to opt for generic equivalents.
Additionally, partnerships between local and international pharmaceutical
companies are enhancing market competitiveness and product availability,
solidifying Saudi Arabia's position as a promising hub for generic drug
manufacturing and distribution.," said Mr. Karan Chechi, Research Director
of TechSci Research, a research-based Global management consulting firm.
"Saudi Arabia Generic Drugs Market by Type
(Small Molecule Generics, Biosimilars), By Mode of Drug Delivery (Oral,
Topical, Parenteral, Others), By Form (Tablet, Capsule, Injection, Others), By
Source (In House, Contract Manufacturing Organizations), By Distribution
Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Others), By
Application (Cardiovascular Diseases, Diabetes, Neurology, Oncology,
Anti-Inflammatory Diseases, Others), By
Region, Competition, Forecast
& Opportunities, 2019-2029F", has evaluated the future growth potential of Saudi
Arabia Generic Drugs Market and provides statistics & information on market
size, structure, and future market growth. The report intends to provide innovative
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Saudi Arabia Generic Drugs
Market.
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