Herbal remedies set for growth in Saudi Arabia

Author: Samantha Chmelik

Date published: 6 Aug 2009

With the rising number of educated Saudis with high incomes, herbal products are back in fashion. In the past, it was old people living in rural areas who used unpackaged herbal products, but now Saudi Arabia is witnessing the increasing availability of packaged herbal products across the country. Euromonitor International explores the increased availability and acceptance of herbal products in Saudi Arabia.

Herbal cough and cold remedies lead through innovation

With herbal cough, cold and allergy remedies accounting for the largest share of overall herbal/traditional products at 47%, it is unsurprising that this category has been the target of most manufacturer activity. Brands launched in recent years include Tussipan, Hederal, Ezipan and Sinuc from Engelhard Arzneimittel GmbH & Co KG as manufacturers have sought to profit from the rising herbal trend.

New product launches are indeed to thank for the strong growth of the sector overall, but other factors should also be mentioned. These include shifting consumer behaviour, especially among the educated and affluent in the country, as more people are recognising the benefits of using herbal products as opposed to non-herbal ones. Herbal products have always been part and parcel of the country's deep- rooted traditions, where the elderly, and especially those living in villages, would prepare homemade remedies for minor ailments such as digestive discomfort or headaches. A strong characteristic of that era was the fact that all these products were unpackaged and, to a large extent, homemade. This is in direct contrast to the trend that has been emerging in recent years in the major cities, where most products are packaged and are sold through pharmacies. The shift in consumer behaviour and the return of self-medication is slowly driving sales of herbal/traditional products.

Herbal analgesics experience fast growth but remain limited

Despite the strong growth witnessed in analgesics in recent years, demand for these products remains low. This is largely due to strong consumer loyalty to non-herbal analgesic brands such as Panadol, which is a household name in Saudi Arabia and the region as a whole. Consumers have so much faith in the brand that replacing it with an herbal alternative remains inconceivable for many. The Panadol range, including Panadol, Panadol Actifast, Panadol Extend, Panadol Extra and Panadol Night, commands a 57% share of the acetaminophen category.

In the case of herbal calming and sleeping products, the picture is very different as the market for any calming and sleeping products remains underdeveloped, which explains the low popularity of herbal varieties. Calming aids are not well-liked in the country and consumers are very wary about taking them due to the perceived belief that they are addictive. Many use homemade sleeping aids, such as camomile mixes, rather than opting for packaged herbal sleeping aids.

Growth prospects remain positive, but strong competition persists

The herbal products market in Saudi Arabia remains very small and will not overtake the OTC remedies market. The return to self-medication might also mean that consumers return to previous practices and prepare their own homemade herbal remedies rather than buy packaged varieties. Recipes such as mixing honey and ginger to help cure flu or boiling mint for digestive discomfort are widely known and followed in the country and might pose a threat to the development of herbal digestive remedies or herbal cough and cold remedies.

The substantial growth in packaged herbal remedies is undeniable, but entrenched OTC brands and self- medication will mean it remains a niche category for the time being.