Dietary Supplements in Saudi Arabia

PROSPECTS

Consumers’ search for preventive measures to combat illnesses drives demand

Consumers’ search for preventive measure to combat illnesses drive demand for dietary supplements in Saudi Arabia. Moreover, increased health-awareness due to governmental activities, doctors and pharmacists, as well as the growing number of entrants in the category, continues to support sales.

Co-enzyme Q10 records the fastest growth

Jamjoom Pharma’s launch of JP Co-Q10 in 2016 has contributed to the growth of co-enzyme Q10 in the country. Its effect on sales has been particularly evident as co-enzyme Q10 was previously mainly sold through other healthcare specialist retailers, such as GNC Armal and online retailers, whereas JP Co-Q10 is available in most chemists/pharmacies and drugstores/parapharmacies across the country.

5% VAT is applied on most dietary supplements

5% VAT is applied on most dietary supplements in 2018 since they are classified under Herbal Drugs as per Saudi Food & Drug Authority. Nevertheless, the increasing number of promotional campaigns, especially among entrants, as well as the fierce competition from internet retailing is offsetting the 5% price increase.

COMPETITIVE LANDSCAPE

Bayer AG leads dietary supplements

Bayer AG brands Priorin N and Cal-C-Vita help the GBO to lead dietary supplements in 2018. Priorin N is benefiting from the company’s aggressive advertising campaign in 2018, including POS activity in leading distribution channels, especially chemists/pharmacies, across Saudi Arabia and from endorsements by doctors and pharmacists.

New players and products will appear

In the forecast period, it is expected that dietary supplements will witness an increasing number of entrants, new products – especially those containing natural ingredients – targeting specific consumers and new formats. Moreover, governmental efforts to enhance the pharmaceutical industry in the country are set to support both international and domestic players; for example, these players will be encouraged to establish their plants locally as per Vision 2030 and the National Transformation Program.

Consumers mainly purchase dietary supplements from chemists/pharmacies

An increasing number of outlets, an extensive variety of products, ongoing promotional campaigns, insurance-covered medication, loyalty programmes and an online ordering option continue to support the chemists/pharmacies channel in 2018, especially since many consumers prefer to consult a pharmacist or doctor first before purchasing dietary supplements. Moreover, dietary supplements are mostly sold as OTC items in chemists/pharmacies and have notable shelf space.

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