Saudi Arabia Pharmacy Retail Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The Saudi Arabia Pharmacy Retail Market was valued at USD 7.34 Billion in 2024, and is expected to reach USD 12.67 Billion by 2030, rising at 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.

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.

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.

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

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:

• Organized
• Unorganized

Saudi Arabia Pharmacy Retail Market, By Product Type:

• Prescribed Drugs
• Over-the-Counter Products
• Non-Pharmaceutical Products
• Medical Equipment

Saudi Arabia Pharmacy Retail Market, By Therapeutic Area:

• Cardiovascular
• Anti-Diabetic
• Pain Relief/Analgesics
• Vitamins/Minerals/Nutrients
• Anti-Infective
• Others

Saudi Arabia Pharmacy Retail Market, By Drug Type:

• Generic
• Patented

Saudi Arabia Pharmacy Retail Market, By Pharmacy Location:

• Street/Mall Based
• Hospital Based

Saudi Arabia Pharmacy Retail Market, By Region:

• Eastern
• Western
• Northern & Central
• Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Pharmacy Retail Market.

Available Customizations:

With the given market data, the publisher 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).

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