Market Trends of Saudi Arabia Pharmaceutical Packaging Industry
This section covers the major market trends shaping the Saudi Arabia Pharmaceutical Packaging Market according to our research experts:
Growing Health Concerns in the Country Drives the Market Growth
- Growing health concerns and investment in the medical sector of Saudi Arabia are boosting the pharmaceutical packaging market in the country. For example, in June 2022, Saudi Arabia invested USD 3.4 billion in the vaccine and biomedical drug sectors. According to the state news agency SPA, Saudi Arabia's industry and Mineral Resources minister said the country would invest USD 3.4 billion in the immunization and biomedical drugs sector. The move is part of the Kingdom's push toward achieving pharmaceutical security and making Saudi Arabia a more prominent hub for the industry.
- The opportunities would achieve the Kingdom's pharmaceutical and health security goals and make Saudi Arabia an important center for this promising industry. Saudi Arabia is one of the most attractive markets in the Middle East for multinational corporations. Diversification plans in the Kingdom bode well for local and regional businesses, with 'Vision 2030' encouraging the expansion of manufacturing agreements in the country. Multinational corporations are very interested. Key draws include the market's share size, demand sophistication, and favorable epidemiological trends. Given the need to meet the rising demand for established generic treatments, local players would also find a fertile commercial base.
- Saudi Arabia has taken significant steps toward implementing its Vision 2030 healthcare reforms to enhance healthcare effectiveness and quality. Despite this, Saudi Arabia's pharmaceutical environment is unlikely to see significant changes due to ongoing challenges concerning patent approval for foreign drugmakers, a discriminatory procurement system, and flawed pricing policies.
- Saudi Arabia's Vision 2030 has defined healthcare as one of its key pillars for development and has set the goals and strategy for improved healthcare access and quality. Building a world-class infrastructure is crucial. The government has turned to the private sector to achieve this with a USD 66 billion investment, making Saudi Arabia the most promising healthcare market in the Middle East. According to the OECD forecast, it was predicted that between 2017 and 2030, the pharmaceutical sector worldwide would grow by 160%, with a significant growth forecast for Saudi Arabia at 232%.
- Saudi Arabia's Vision 2030 and National Transformation Plan would encourage the expansion of domestic pharmaceutical manufacturing in the Kingdom. This would reduce the reliance on imported generic medicines while providing opportunities for exports to neighboring import-reliant states.
- To expand the pharmaceutical sector in the country, the government is taking various initiatives, which have led to the high demand for the market. The GCC countries also aim to develop their domestic manufacturing capabilities to reduce their import dependency. GCC regulations stipulate that producers in member states are not required to obtain registration or licenses to export to Saudi Arabia; regional producers are effectively given preferential treatment for entry into the Saudi market.
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Bottles Type Pharmaceutical Packaging is Expected to Hold Major Market Share
- The bottles segment of the pharmaceutical packaging market accounts for a major share in terms of packaging type. This is due to the increased applications of plastics and glass in both solid and liquid oral medications, as bottles provide safety, convenience, and security.
- Glass containers are one of the primary packaging materials used in the pharmaceutical industry. The major reason for glass to hold the majority share in terms of adoption rate is that glass is an inorganic material made up of substances that prevent drug interactions. Moreover, increasing regulatory pressure and stringent standards for patient safety, coupled with the implementation of extra measures to reduce the risk of drug interaction, are also driving the market growth. Glass containers are classified into Type I, Type II, Type III, and Type IV glass, based on the degree of chemical/hydrolytic resistance to a water attack.
- Plastic bottle packaging is expected to witness significant growth because of its lightweight and easy-to-handle characteristics, making it easy to carry and doesn't break as easily as glass bottles. Plastics also have a greater aesthetic value and a barrier against moisture and air. These characteristics of plastic bottles are expected to boost the market growth in Saudi Arabia.
- Plastics are compatible with many formulations as well. Since plastic containers may be in direct contact with pharmaceutical formulations, they are usually made of materials that do not contain any substance that can alter the efficiency or stability of the formulation or present a risk of toxicity.
- However, the Saudi Standards, Metrology, and Quality Organization (SASO) announced new rules for plastic products in Saudi Arabia. The plastic needs to be OXO-biodegradable, and the plastic products entering the country have to be mandatorily registered and approved with SASO for industrial or commercial uses. Hence, different government regulations are expected to hinder the growth of plastic bottles in the country, further affecting the overall bottle packaging in the Saudi Arabian pharmaceutical industry.
