Market Trends of Saudi Arabia Active Pharmaceutical Ingredients (API) Industry
This section covers the major market trends shaping the Saudi Arabia Active Pharmaceutical Ingredients (API) Market according to our research experts:
Oncology Segment Expects to Register a High CAGR
The oncology segment is expected to witness significant growth in the active pharmaceutical ingredients industry in Saudi Arabia over the forecast period. The factors attributing to the market growth are the rising burden of cancer cases and raising awareness towards treating the early-onset cancer epidemic.
Cancer incidence is increasing rapidly among the population and is most likely due to a build-up of risks for specific cancers that increase with age. The outbreak of cancer at a young age of onset may be a symptom of rising trends in the occurrence of numerous chronic diseases among young people. Hence, there should be proper cancer management, which is possible with advanced medicines.
According to the GLOBOCAN 2020 fact sheet, 27,885 new cancer cases (14,253 in males and 13,632 in females) were reported in Saudi Arabia in 2020. In addition, as per the same source, about 3,954 new breast cancer cases were reported in Saudi Arabia in 2020. This number is projected to reach 7,181 by 2040. Thus, the expected increase in cancer cases among the population further raises the company's focus on developing effective and safe drugs, which are expected to increase the demand for APIs over the forecast period.
The increasing company focuses on research and development activities for developing products. The rising adoption of various business strategies, such as partnerships and collaborations, is also expected to increase the demand and availability of oncology drugs in the market, boosting segment growth. For instance, in November 2021, Abdul Latif Jameel Health partnered with EQRx to bring two novel and affordable cancer treatments to 1.5 billion people suffering from non-small cell lung cancer (NSCLC) in the Middle East, including Saudi Arabia.
Therefore, the studied segment is expected to grow over the forecast period due to the aforementioned factors, such as the high burden of cancer among the population and increasing company activities in the country.
Branded Segment Expects to Have the Significant Market Share
The branded segment is expected to grow over the forecast period owing to the factors such as the high burden of chronic diseases such as cardiovascular diseases and diabetes, growing awareness regarding branded drugs among the population, as well as increasing company activities in developing drugs in the country. According to the 2022 statistics published by IDF, about 1.8 million were living with diabetes in Saudi Arabia in 2021. This figure is projected to double by 2050. Thus, the expected increase in diabetes cases further raises the company's focus on developing effective and safe drugs, which are expected to increase the demand for APIs over the forecast period.
Additionally, an article published in Annals of Africa Medicine in December 2021 stated that congenital heart disease (CHD), such as hypoplastic left heart and heterotaxy syndrome, are among the leading causes of death in patients with down syndrome (DS). A regional variation in the prevalence of CHD within Saudi Arabia is higher among patients with DS, which may be due to differences in geographical features of different parts of Saudi Arabia. Thus, the higher prevalence of congenital heart disease is expected to drive the demand for API for drug manufacturing in the country, driving market growth.
Furthermore, from an article published in the International Journal of Equity in Health in July 2021, it has been observed that Saudi Arabia has one of the highest rates of non-communicable diseases (NCDs) globally and the highest in the Arabian Gulf region. These increasing NCDs in the country are expected to increase the demand for pharmaceutical drugs that require APIs.
Moreover, the rising company activities in developing branded drugs in the country are also expected to increase the demand for APIs for drug development and formulation. For instance, in November 2021, Novo Nordisk launched a glucagon-like peptide-1 receptor agonist (GLP-1 RA) in the form of oral pills, an innovative technology and treatment in the Kingdom of Saudi Arabia, to treat patients with type-2 diabetes.
Therefore, the studied segment is expected to grow over the forecast period owing to crucial factors, such as the rising chronic diseases among the Saudi Arabian population and increasing product launches.
