OTC Products - Saudi Arabia

Saudi Arabia

In Saudi Arabia, the revenue in the OTC Products market is forecasted to reach US$908.00m in 2024.
It is anticipated that the revenue will exhibit an annual growth rate (CAGR 2024-2028) of 4.63%, which will result in a market volume of US$1,088.00m by 2028.
When comparing this to the global market, China is expected to generate the highest revenue of US$74.91bn in 2024.
In terms of per person revenues, in Saudi Arabia is projected to generate US$24.23 in 2024.
In Saudi Arabia, the demand for OTC products is steadily increasing due to the growing health consciousness among the population.

Key regions: Europe, Germany, Canada, Japan, South Korea

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Analyst Opinion

The OTC Products (Pharmacies) market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly turning to over-the-counter (OTC) products for their healthcare needs. This can be attributed to several factors, including the convenience and accessibility of these products. OTC products are readily available in pharmacies across the country, allowing customers to easily purchase medications and healthcare products without the need for a prescription. Additionally, customers appreciate the wide range of OTC products available, which cater to various health concerns such as cold and flu, pain relief, and skincare.

Trends in the market: One of the key trends in the OTC Products market in Saudi Arabia is the growing demand for natural and herbal remedies. Customers are becoming more conscious of their health and are seeking alternatives to traditional medications. This trend is driven by a desire for products that are perceived as safer and have fewer side effects. As a result, pharmacies in Saudi Arabia are expanding their offerings to include a wider range of natural and herbal OTC products to meet this growing demand. Another trend in the market is the increasing popularity of online pharmacies. With the rise of e-commerce in Saudi Arabia, customers are now able to conveniently purchase OTC products online and have them delivered to their doorstep. This trend is particularly prominent among younger generations who are tech-savvy and value the convenience of online shopping. Online pharmacies also offer a wider selection of products compared to physical stores, further driving their popularity.

Local special circumstances: Saudi Arabia has a rapidly growing population, with a large proportion of young individuals. This demographic shift is contributing to the growth of the OTC Products market as young consumers are more inclined to self-medicate and seek healthcare solutions independently. Additionally, the Saudi government has been actively promoting the use of OTC products as a means to reduce the burden on healthcare facilities and improve access to medications for the population.

Underlying macroeconomic factors: The OTC Products market in Saudi Arabia is also influenced by macroeconomic factors such as increasing disposable income and urbanization. As the economy continues to grow, individuals have more disposable income to spend on healthcare products. This has led to an increased demand for OTC products, as customers are willing to invest in their health and well-being. Urbanization has also played a role in the market's development, as urban areas tend to have a higher concentration of pharmacies and a greater demand for healthcare products. In conclusion, the OTC Products market in Saudi Arabia is experiencing growth and development due to customer preferences for convenience and accessibility, the trend towards natural and herbal remedies, the popularity of online pharmacies, the local special circumstances of a growing population and government support, and underlying macroeconomic factors such as increasing disposable income and urbanization.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on offline and online spending by consumers, including VAT. Not included are B2B and B2G sales, or other pharmaceutical sales through hospitals or retail stores such as supermarkets.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market market. As a basis for evaluating markets, we use industry associations, third-party studies and reports and survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as healthcare expenditure per country, consumer healthcare spending, GDP and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, forecasts are based on historical developments, current trends, and key market indicators, using advanced statistical methods. For forecasting digital trends such as the online-pharmacy sales share we use exponential trend smoothing and the s-curve method. The main drivers are healthcare expenditure per country and consumer healthcare spending.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. GCS data is reweighted for representativeness.