Middle East & Africa Pharmaceuticals Market Outlook to 2030

Middle East & Africa Pharmaceuticals Market Overview

• The Middle East & Africa (MEA) pharmaceuticals market is valued at USD 29 billion, driven by a growing population, increasing prevalence of chronic diseases, and rising healthcare expenditures. The region's expanding healthcare infrastructure and government initiatives to improve medical access further contribute to market growth.

• Saudi Arabia and South Africa are dominant players in the MEA pharmaceuticals market. Saudi Arabia's dominance is attributed to its substantial healthcare investments and a robust pharmaceutical manufacturing sector. South Africa leads due to its well-established healthcare system and status as a hub for pharmaceutical research and development.
• The drug approval processes in the Middle East and Africa (MEA) region are diverse, reflecting the varying regulatory frameworks of individual countries. In Africa, the African Medicines Agency (AMA) was established in 2019 to enhance regulatory harmonization across the continent. However, as of 2022, only 15 countries had ratified the treaty establishing the AMA, indicating ongoing efforts toward regulatory cohesion. These varying approval processes can impact the time-to-market for new drugs, necessitating strategic navigation by pharmaceutical companies.

Middle East & Africa Pharmaceuticals Market Segmentation

By Drug Type: The MEA pharmaceuticals market is segmented by drug type into branded drugs, generic drugs, and over-the-counter (OTC) drugs. Branded drugs hold a dominant market share due to strong brand recognition and physician preference for established medications. However, the generic drugs segment is experiencing significant growth, driven by cost-effectiveness and government policies promoting generic drug use.

By Application: The market is also segmented by application into cardiovascular diseases, oncology, infectious diseases, and others. Cardiovascular diseases dominate the market share, reflecting the high prevalence of heart-related conditions in the region. Oncology is a rapidly growing segment, driven by increasing cancer incidence and advancements in cancer treatment therapies.

Middle East & Africa Pharmaceuticals Market Competitive Landscape

The MEA pharmaceuticals market is characterized by the presence of both multinational corporations and local companies. Key players include Pfizer Inc., Novartis AG, Sanofi S.A., GlaxoSmithKline plc, and AstraZeneca plc. These companies maintain a strong market presence through extensive product portfolios, strategic partnerships, and continuous investment in research and development.

Middle East & Africa Pharmaceuticals Market Analysis

Growth Drivers

• Increasing Prevalence of Chronic Diseases: The Middle East and Africa (MEA) region is experiencing a significant rise in chronic diseases. For instance, the International Diabetes Federation reported that in 2021, approximately 73 million adults aged 20-79 in the Middle East and North Africa (MENA) region were living with diabetes, a number projected to increase substantially in the coming years. This escalating burden underscores the growing demand for pharmaceutical interventions to manage and treat chronic conditions.
• Rising Healthcare Expenditure: Healthcare spending in the MEA region has been on an upward trajectory. According to the World Bank, Saudi Arabia's health expenditure per capita increased from $1,147 in 2018 to $1,274 in 2020. Similarly, South Africa's health expenditure per capita rose from $526 in 2018 to $570 in 2020. This increase in healthcare spending reflects a commitment to improving healthcare infrastructure and access, thereby boosting the pharmaceutical market.
• Government Initiatives and Healthcare Reforms: Governments across the MEA region are implementing reforms to enhance healthcare delivery. For example, Saudi Arabia's Vision 2030 aims to privatize healthcare services and increase private sector participation from 25% to 35% by 2025. In Egypt, the Universal Health Insurance Law, enacted in 2018, seeks to provide comprehensive health coverage to all citizens by 2032. These initiatives are expected to increase the demand for pharmaceuticals as access to healthcare services expands.

Challenges

• Counterfeit Medicines and Drug Quality Concerns: The proliferation of counterfeit medicines poses a significant challenge in the MEA region. The issue of counterfeit medicines significantly affects public health in Africa, with estimates suggesting that nearly 500,000 deaths occur annually due to trafficked medical products in sub-Saharan Africa alone. This includes deaths linked to substandard antimalarial and antibiotic treatments. This issue undermines patient trust and poses serious health risks, necessitating stringent regulatory measures to ensure drug quality and safety.
• Intellectual Property Rights and Patent Protection Issues: Intellectual property rights (IPR) enforcement varies across the MEA region, affecting pharmaceutical innovation. The Global Innovation Index 2021 ranked South Africa 61st and Egypt 94th out of 132 economies in terms of IPR protection. Weak IPR enforcement can deter investment in pharmaceutical research and development, impacting the availability of new and innovative drugs.

Middle East & Africa Pharmaceuticals Market Future Outlook

Over the next five years, the MEA pharmaceuticals market is expected to experience significant growth, driven by continuous government support, advancements in pharmaceutical technologies, and increasing consumer demand for effective healthcare solutions. The expansion of healthcare infrastructure and rising awareness of chronic diseases will further propel market growth.

Market Opportunities

• Expanding Access to Healthcare Services: Efforts to expand healthcare access are creating opportunities in the pharmaceutical market. A study reported that healthcare access in Sub-Saharan Africa (SSA) stands at approximately42.56%, indicating limited access despite global targets for universal health coverage (SDG 3.8) aimed at ensuring everyone can obtain necessary health services. This expansion increases the demand for pharmaceuticals to meet the healthcare needs of a growing population.
• Growth in Generic Pharmaceuticals: The demand for affordable medications is boosting the generic pharmaceuticals market in the MEA region. In South Africa, generics accounted for 65% of the pharmaceutical market volume in 2020, according to the South African Health Products Regulatory Authority. The MEA region's population growth, coupled with increasing life expectancy, is driving demand for healthcare services, including pharmaceuticals. As a result, generic drugs are becoming essential for providing affordable healthcare solutions to a broader population segment.