Market Trends of Saudi Arabia Pharmaceutical Glass Packaging Industry
This section covers the major market trends shaping the Saudi Arabia Pharmaceutical Glass Packaging Market according to our research experts:
Growth of the Pharmaceutical Sector in the Country
- Saudi Arabia is one of the significant economies in the Middle East region by GDP and population. Saudi Arabia has a considerable share of the pharmaceuticals market in the Gulf Cooperation Council (GCC) region. According to ITA, the healthcare sector remains a primary focus for the Saudi Arabian government, with Saudi Arabia accounting for 60% of the GCC nations' healthcare spending. Thus, it positively impacts Saudi Arabia's Pharmaceutical Packaging Market.
- Under the country's long-term development plan, Vision 2030, and its shorter-term goals in the National Transformation Programme (NTP), a significant shift toward locally produced and packaged medicines and drugs is set to take place. Currently, only 30% of pharmaceutical products are manufactured locally. Therefore, opportunities for pharmaceutical packaging manufacturers are expected to grow significantly. Also, the Kingdom of Saudi Arabia is positioning itself to cater to the demands of other GCC and North African countries. Exporting to these regions from Saudi Arabia has significantly increased in recent years.
- Saudi Arabia heavily relies on external markets to meet the ever-growing domestic demand, thus depending on imports. According to ITC, in 2021, the country's imports of pharmaceutical products were approximately USD 6.92 billion, a 23.35% rise in imports from the previous year, 2020, valued at around USD 5.61 billion.
- The Saudi National Industrial Development and Logistics Program (NDLP) estimated that by 2030, the Kingdom's pharmaceutical business would be worth SAR 44 billion (USD 11.72 billion). Further, according to ITA, healthcare and social development were estimated to account for USD 36.8 billion in 2022, or 14.4% of its overall budget and the third-largest line item after education and the military. Privatizing the healthcare industry is a goal of the Saudi Arabian government. The increase in growth anticipated would create opportunities for various pharmaceutical glass packaging companies to invest in the country's healthcare sector.
Understand The Key Trends Shaping This Market
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Bottles and Containers Segment to Hold Significant Market Share
- The two types of glass bottles used for pharmaceutical packaging are small and big bottles, respectively, based on their size. In addition to transfusion and infusion bottles, large-sized glass bottles are utilized for packaging reagents. In addition to syrup bottles, oral liquids are packaged in small glass bottles. Due to various new prospects, including the growing use of oral pills packed in small bottles, the market for small-sized bottles is anticipated to expand.
- The nation's pharmaceutical firms are constantly investing in growing their production to keep up with the rising demand and new Saudi legislation that mandates some manufacture to take place domestically.
- In December 2021, Tabuk Pharmaceutical, a Saudi Arabian pharmaceutical business, and Biocon signed a contract to sell a few prescription medications throughout the Middle East. Tabuk Pharmaceuticals is in charge of registration, import, and promotion in Saudi Arabia and other Middle Eastern nations under the agreement and will hold the marketing authority for several Biocon-specialised products. It aligns with the growth of glass packaging in the pharmaceutical sector.
- The transformation plan in Saudi Arabia aims to raise the percentage of total pharmaceutical production to 40% from the current 20%. Local companies are gearing up, and the regulatory body encourages, facilitates, and provides incentives, enabling global companies to take advantage of this opportunity, which is anticipated to boost the market for glass bottles and containers in the country.
- According to ITC, in 2021, Saudi Arabia's imports of glass bottles and containers, excluding ampoules, valued at around USD 44.757 million, with China as the major importer, amounting to USD 25.443 million, followed by Kuwait with USD 8.899 million. The significant imports would contribute to the adoption of glass bottles and containers in the pharmaceutical packaging market.
