OTC Healthcare in Saudi Arabia
Euromonitor International's OTC Healthcare in Saudi Arabia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 113 | Publication date: Jun 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Adult mouth care; Allergy care; Analgesics; Calming and sleeping products; Child-specific OTC healthcare; Cough; cold and allergy (hay fever) remedies; Digestive remedies; Ear care; Emergency contraception; Eye care; Medicated skin care; NRT Smoking cessation aids; OTC obesity; OTC statins; OTC triptans; Vitamins and dietary supplements; Wound treatments
Executive summary
Sales advance at a rate on par with growth registered over the review period
Saudi OTC healthcare maintained its position as one of the most dynamic markets in the region. In 2008, sales grew by over 7% in current value terms, in line with the average growth rate of the review period. Several factors contributed to this performance, including the high per capita disposable income that many Saudis enjoy, falling unit prices and most importantly, new product developments, which remained very dynamic during 2008. Socio-demographic factors, the development of the retailing landscape, especially hypermarkets and healthfood shops, and common health risks such as obesity continued to bolster growth and demand in 2008.
Global economic downturn had no impact on Saudi OTC healthcare in 2008
Saudi Arabia’s economy has been immune from the global credit crunch affecting many economies around the world, at least during 2008. The sharp increase in oil prices during the first three quarters of 2008, which rocketed to US$140 a barrel in July, is expected to further boost the country’s GDP and per capita income by the end of 2008. The hike in oil prices in 2008 has made up for the subsequent fall in its price in 2009, maintaining growth. Health and social affairs received the second largest allocation of government spending, with the spending increasing by 12% in the 2008 budget to above SR44 billion.
SPIMACO maintains leadership but other local manufacturers gain in importance
The Saudi OTC healthcare market is highly competitive and fragmented, with a strong presence of many international companies such as Novartis AG and GlaxoSmithKline Plc, local producers such as SPIMACO and Tabuk Pharmaceutical Manufacturing Co and manufacturers from neighbouring countries such as Julphar Gulf Pharmaceuticals from the UAE. SPIMACO was able to maintain its leadership in 2008, but lost share to rapidly growing local companies like Jamjoom Pharma and Al Jazeerah Pharmaceutical Industries, as well as new rivals, mainly from the UAE, such as Global Pharma Co UAE and Pharma International Co. The latter companies mainly compete on price, as their products mainly consist of branded generics with expired patents. This also had a negative impact on multinational suppliers, except for GlaxoSmithKline, which was able to outperform others through product innovation and aggressive advertising.
Gradual shift towards a new OTC retailing system continued in 2008
Chemists/pharmacies retained its position as the most important retail distribution channel for Saudi OTC healthcare products, as all drugs classified as Rx (prescription-only) and OTC should be sold directly to consumers through pharmacies only, according to Saudi regulations. However, the channel continued to lose share to grocery outlets, namely supermarkets/hypermarkets, and healthfood shops, which indicates the gradual shift towards a new OTC retailing system. The latter benefited from the sale of products that are not classified by the Saudi Ministry of Health as drugs and are therefore allowed to be sold through non-pharmacy channels, such as many products included in medicated confectionery, pharyngeal preparations, wound care, mouth care and vitamins and dietary supplements. The continued relaxation of the Saudi Ministry of Health’s regulations, including the permission given to some typical OTC drugs like paracetamol to be sold through non-pharmacy channels, and the rapid expansion in the number of outlets largely benefited these two channels.
Saudi OTC healthcare to see a lower CAGR over the forecast period
OTC healthcare is expected to record a lower CAGR over the forecast period compared to that registered over the review period, due to declining unit prices and the rising share of low-priced branded generics at the expense of high-priced international brands. Yet, the market will still offer room for further expansion in terms of per capita consumption, driven by the same growth factors mentioned above. The market will also benefit from government plans to privatise large parts of its healthcare sector in a bid to meet demand and raise the standard of treatment, according to a Saudi official statement published in local trade press in October 2008.
Table of contents
OTC HEALTHCARE IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Sales advance at a rate on par with growth registered over the review period
Global economic downturn had no impact on Saudi OTC healthcare in 2008
SPIMACO maintains leadership but other local manufacturers gain in importance
Gradual shift towards a new OTC retailing system continued in 2008
Saudi OTC healthcare to see a lower CAGR over the forecast period
KEY TRENDS AND DEVELOPMENTS
Saudi economy continues to perform in 2008 despite the global financial crisis
Increasing penetration of OTC products due to lower unit prices
Health risks, the climate and demographic factors drive strong demand
New product development fuelled rapid growth of many sectors
Increasing level of competition favours overall OTC healthcare
MARKET INDICATORS
Table 1 Consumer Expenditure on Health Goods and Medical Services 2003-2008
Table 2 Life Expectancy at Birth 2003-2008
MARKET DATA
Table 3 Sales of OTC Healthcare by Sector: Value 2003-2008
Table 4 Sales of OTC Healthcare by Sector: % Value Growth 2003-2008
Table 5 OTC Healthcare Company Shares by Value 2004-2008
Table 6 OTC Healthcare Brand Shares by Value 2005-2008
Table 7 Sales of OTC Healthcare by Distribution Format: % Analysis 2003-2008
Table 8 Sales of OTC Healthcare by Sector and Distribution Format: % Analysis 2008
Table 9 Forecast Sales of OTC Healthcare by Sector: Value 2008-2013
Table 10 Forecast Sales of OTC Healthcare by Sector: % Value Growth 2008-2013
APPENDIX
OTC Registration and Classification
Vitamins & Dietary Supplements Registration and Classification
Self-medication and Preventative Medicine
Generics
Switches
Summary 1 OTC Healthcare Switches
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
JAMJOOM PHARMA - OTC HEALTHCARE - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Jamjoom Pharma: Key Facts
Summary 4 Jamjoom Pharma: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Jamjoom Pharma: Competitive Position 2008
JULPHAR GULF PHARMACEUTICALS - OTC HEALTHCARE - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Julphar Gulf Pharmaceuticals: Key Facts
Summary 7 Julphar Gulf Pharmaceuticals: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Julphar Gulf Pharmaceuticals: Competitive Position 2008
RIYADH PHARMA - OTC HEALTHCARE - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Riyadh Pharma: Key Facts
Summary 10 Riyadh Pharma: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Riyadh Pharma: Competitive Position 2008
SAUDI PHARMACEUTICAL INDUSTRIES & MEDICAL APPLIANCES CO (SPIMACO) - OTC HEALTHCARE - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Saudi Pharmaceutical Industries & Medical Appliances Co (SPIMACO): Key Facts
Summary 13 Saudi Pharmaceutical Industries & Medical Appliances Co (SPIMACO): Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
Summary 14 Saudi Pharmaceutical Industries & Medical Appliances Co (SPIMACO): Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Saudi Pharmaceutical Industries & Medical Appliances Co (SPIMACO): Competitive Position 2008
TABUK PHARMACEUTICAL MANUFACTURING CO - OTC HEALTHCARE - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Tabuk Pharmaceutical Manufacturing Co: Key Facts
Summary 17 Tabuk Pharmaceutical Manufacturing Co: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Tabuk Pharmaceutical Manufacturing Co: Competitive Position 2008
ANALGESICS IN SAUDI ARABIA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 11 Sales of Analgesics by Subsector: Value 2003-2008
Table 12 Sales of Analgesics by Subsector: % Value Growth 2003-2008
Table 13 Herbal vs Standard Topical Analgesics 2003-2008
Table 14 Topical Analgesics by Format: % Value Breakdown 2004-2008
Table 15 Analgesics Company Shares by Value 2004-2008
Table 16 Analgesics Brand Shares by Value 2005-2008
Table 17 Forecast Sales of Analgesics by Subsector: Value 2008-2013
Table 18 Forecast Sales of Analgesics by Subsector: % Value Growth 2008-2013
COUGH, COLD AND ALLERGY (HAY FEVER) REMEDIES IN SAUDI ARABIA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 19 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2003-2008
Table 20 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2003-2008
Table 21 Sales of Decongestants by Type: Value 2003-2008
Table 22 Sales of Decongestants by Type: % Value Growth 2003-2008
Table 23 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: Value 2003-2008
Table 24 Sales of Child-specific Cough, Cold and Allergy (Hay Fever) Remedies by Type: % Value Growth 2003-2008
Table 25 Herbal vs Standard Cough, Cold and Allergy (Hay Fever) Remedies 2003-2008
Table 26 Cough, Cold and Allergy (Hay Fever) Remedies Company Shares by Value 2004-2008
Table 27 Cough, Cold and Allergy (Hay Fever) Remedies Brand Shares by Value 2005-2008
Table 28 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: Value 2008-2013
Table 29 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Subsector: % Value Growth 2008-2013
DIGESTIVE REMEDIES IN SAUDI ARABIA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 Sales of Digestive Remedies by Subsector: Value 2003-2008
Table 31 Sales of Digestive Remedies by Subsector: % Value Growth 2003-2008
Table 32 Herbal vs Standard Digestive Remedies 2003-2008
Table 33 Digestive Remedies Company Shares by Value 2004-2008
Table 34 Digestive Remedies Brand Shares by Value 2005-2008
Table 35 Forecast Sales of Digestive Remedies by Subsector: Value 2008-2013
Table 36 Forecast Sales of Digestive Remedies by Subsector: % Value Growth 2008-2013
MEDICATED SKIN CARE IN SAUDI ARABIA
HEADLINES
TRENDS
SWITCHES
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Sales of Medicated Skin Care by Subsector: Value 2003-2008
Table 38 Sales of Medicated Skin Care by Subsector: % Value Growth 2003-2008
Table 39 Herbal vs Standard Medicated Skin Care 2003-2008
Table 40 Acne Treatments by Format: % Value Breakdown 2004-2008
Table 41 Medicated Skin Care Company Shares by Value 2004-2008
Table 42 Medicated Skin Care Brand Shares by Value 2005-2008
Table 43 Acne Treatments Brand Shares by Value 2005-2008
Table 44 Hair Loss Treatments Brand Shares by Value 2005-2008
Table 45 Forecast Sales of Medicated Skin Care by Subsector: Value 2008-2013
Table 46 Forecast Sales of Medicated Skin Care by Subsector: % Value Growth 2008-2013
VITAMINS AND DIETARY SUPPLEMENTS IN SAUDI ARABIA
SECTOR DATA
Table 47 Sales of Vitamins and Dietary Supplements by Subsector: Value 2003-2008
Table 48 Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2003-2008
Table 49 Folic Acid v Other B Vitamins 2004-2008
Table 50 Dietary Supplements by Positioning 2006-2008
Table 51 Vitamins and Dietary Supplements Company Shares by Value 2004-2008
Table 52 Vitamins and Dietary Supplements Brand Shares by Value 2005-2008
Table 53 Vitamins Brand Shares by Value 2005-2008
Table 54 Dietary Supplements Brand Shares by Value 2005-2008
Table 55 Forecast Sales of Vitamins and Dietary Supplements by Subsector: Value 2008-2013
Table 56 Forecast Sales of Vitamins and Dietary Supplements by Subsector: % Value Growth 2008-2013
NRT SMOKING CESSATION AIDS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR INDICATORS
Table 57 Number of Smokers by Gender 2003-2008
SECTOR DATA
Table 58 Sales of Smoking Cessation Aids by Subsector: Value 2003-2008
Table 59 Sales of Smoking Cessation Aids by Subsector: % Value Growth 2003-2008
Table 60 NRT Gum Flavours: % Value Breakdown 2006-2008
Table 61 Smoking Cessation Aids Company Shares by Value 2004-2008
Table 62 Smoking Cessation Aids Brand Shares by Value 2005-2008
Table 63 Forecast Sales of Smoking Cessation Aids by Subsector: Value 2008-2013
Table 64 Forecast Sales of Smoking Cessation Aids by Subsector: % Value Growth 2008-2013
EYE CARE IN SAUDI ARABIA
SECTOR DATA
Table 65 Sales of Eye Care by Subsector: Value 2003-2008
Table 66 Sales of Eye Care by Subsector: % Value Growth 2003-2008
Table 67 Standard Eye Care by Type: % Value Breakdown 2007-2008
Table 68 Eye Care Company Shares by Value 2004-2008
Table 69 Eye Care Brand Shares by Value 2005-2008
Table 70 Forecast Sales of Eye Care by Subsector: Value 2008-2013
Table 71 Forecast Sales of Eye Care by Subsector: % Value Growth 2008-2013
EAR CARE IN SAUDI ARABIA
SECTOR DATA
Table 72 Sales of Ear Care: Value 2003-2008
Table 73 Sales of Ear Care: % Value Growth 2003-2008
Table 74 Ear Care Company Shares by Value 2004-2008
Table 75 Ear Care Brand Shares by Value 2005-2008
Table 76 Forecast Sales of Ear Care: Value 2008-2013
Table 77 Forecast Sales of Ear Care: % Value Growth 2008-2013
ADULT MOUTH CARE IN SAUDI ARABIA
SECTOR DATA
Table 78 Sales of Adult Mouth Care: Value 2003-2008
Table 79 Sales of Adult Mouth Care: % Value Growth 2003-2008
Table 80 Adult Mouth Care Company Shares by Value 2004-2008
Table 81 Adult Mouth Care Brand Shares by Value 2005-2008
Table 82 Forecast Sales of Adult Mouth Care: Value 2008-2013
Table 83 Forecast Sales of Adult Mouth Care: % Value Growth 2008-2013
CALMING AND SLEEPING PRODUCTS IN SAUDI ARABIA
SECTOR DATA
Table 84 Sales of Calming and Sleeping Products: Value 2003-2008
Table 85 Sales of Calming and Sleeping Products: % Value Growth 2003-2008
Table 86 Calming and Sleeping Products Company Shares by Value 2004-2008
Table 87 Calming and Sleeping Products Brand Shares by Value 2005-2008
Table 88 Forecast Sales of Calming and Sleeping Products: Value 2008-2013
Table 89 Forecast Sales of Calming and Sleeping Products: % Value Growth 2008-2013
WOUND TREATMENTS IN SAUDI ARABIA
SECTOR DATA
Table 90 Sales of Wound Treatments by Subsector: Value 2003-2008
Table 91 Sales of Wound Treatments by Subsector: % Value Growth 2003-2008
Table 92 Wound Treatments Company Shares by Value 2004-2008
Table 93 Wound Treatments Brand Shares by Value 2005-2008
Table 94 Forecast Sales of Wound Treatments by Subsector: Value 2008-2013
Table 95 Forecast Sales of Wound Treatments by Subsector: % Value Growth 2008-2013
OTC OBESITY IN SAUDI ARABIA
EMERGENCY CONTRACEPTION IN SAUDI ARABIA
OTC STATINS IN SAUDI ARABIA
OTC TRIPTANS IN SAUDI ARABIA