The negative sales growth that was being seen in sleep aids for most of the review period gave way to a positive performance in 2020 as the stresses and pressures that many felt due to lifestyle changes as a result of the COVID-19 pandemic boosted demand for products which can help consumers to relax and get a good night’s sleep. In addition to the fear of falling ill with a potentially fatal virus for which there is no known cure, many Saudi consumers also faced economic uncertainty and nagging doubts about the security of their sources of income as the official response to the COVID-19 took its toll on commercial activity in various economic sectors.
One of the main drivers of sales growth in sleep aids during 2020 was the increasing use of promotional offers and discounts to boost sales of these products at a time when the demand is increasing due to the added pressures and stresses of the COVID-19 pandemic. Among the most common sources of such price discounts are e-commerce websites, although promotional discounts were also seen in many chemists/pharmacies.
With demand for sleep aids surging ahead during 2020 as the stresses and pressures of the COVID-19 pandemic led many consumers to seek out products that can help them relax and get a better night sleep, Jamjoom Pharma Nutraceuticals to the opportunity to launch its new Valerian Root Extract 250mg capsules. This products is classified as a herbal/traditional products, meaning that it attracts 15% VAT, price and it more than slightly higher than the category average unit price.
The forecast period is expected to see sales of sleep aids benefit from the increasing investment of the category leader GSK Consumer Healthcare in its Saudi Arabia-based manufacturing operations. GSK Consumer Healthcare dominates sales of sleep aids with its category-leading brand Panadol Night and the recent manufacturing localisation agreement signed between the company and the Saudi Arabian General Investment Authority (Sagia) is expected to see GSK Consumer Healthcare double its manufacturing capacity in the Kingdom by 2022.
Sales of sleep aids are expected to come under pressure during the forecast period after a solid performance in 2020, with low consumer awareness of these products and their benefits likely to remain a major factor limiting the category’s sales growth potential. Whilst there is unquestionably a growing need for products that help people to relax and sleep better, the fact that most Saudis are unaware of the existence of products is likely to suppress demand throughout the forecast period.
2020 saw Saudi consumers embrace e-commerce as never before as the imposition of curfews and quarantines across the Kingdom during the second and third quarters of the year resulted in many people choosing to order that consumer health products online and have them delivered to their homes. The leading names in the online retailing of consumer health products including OTC sleep aids include chained chemists/pharmacies players Nahdi and Al Dawaa and drugstores/parapharmacies player Whites, all of which already have well-developed omni-channel retailing systems, enabling consumers to select their favourite products online for home delivery.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Sleep Aids industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Sleep Aids industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Sleep Aids research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page