Pharmacy Price Disparities in Saudi Arabia: A Comprehensive Analysis
Retail pharmacies charge significantly more than wholesale outlets for personal care products.
Saudi consumers are facing steep price disparities for everyday personal care products, with retail pharmacies charging up to 180 percent more than wholesale outlets, according to a field survey conducted by Al-Eqtisadiah.
The investigation covered major pharmacy chains and retail outlets, highlighting significant markups on popular items such as Cetaphil cream and Dettol soap.Economic experts argue that these disparities are irrational and unjustified, with normal profit margins typically not exceeding 15 percent of the cost.
Calls have been made for regulatory intervention by the Competition Authority to study the market and regulate pricing practices.
The Saudi Food and Drug Authority is actively monitoring pharmacies through direct inspections and joint campaigns with other government entities.The price gaps have prompted consumer complaints and concerns about the ability of consumers to make informed purchasing decisions.
Professor Saad Al-Talhab, a dermatology consultant, emphasized the need for closer monitoring of pricing mechanisms to address these issues.
Low consumer awareness is cited as a reason for the significant price differences between pharmacies.According to NielsenIQ, the beauty industry has experienced regional growth, with the Africa–Middle East region posting a 27.1 percent surge in value year on year.
This growth is largely attributed to inflationary pressures rather than an increase in product volume, indicating that higher unit prices are driving revenues across the region.
Saudi Arabia's imports of beauty and personal care products have reached SR48.8 billion over the past five years, with France being the largest supplier during this period.The expanding distribution network across both major cities and peripheral regions is signaling growing investor interest in the sector, as evidenced by an increase in commercial registrations for wholesale pharmaceutical sales and cosmetic product storage.
The Ministry of Commerce reported approximately 6,700 commercial licenses for wholesale pharmaceutical sales and 6,300 licenses for cosmetic product storage as of September, reflecting the expansion of the sector and its increasing reliance on organized distribution channels.
The investigation covered major pharmacy chains and retail outlets, highlighting significant markups on popular items such as Cetaphil cream and Dettol soap.Economic experts argue that these disparities are irrational and unjustified, with normal profit margins typically not exceeding 15 percent of the cost.
Calls have been made for regulatory intervention by the Competition Authority to study the market and regulate pricing practices.
The Saudi Food and Drug Authority is actively monitoring pharmacies through direct inspections and joint campaigns with other government entities.The price gaps have prompted consumer complaints and concerns about the ability of consumers to make informed purchasing decisions.
Professor Saad Al-Talhab, a dermatology consultant, emphasized the need for closer monitoring of pricing mechanisms to address these issues.
Low consumer awareness is cited as a reason for the significant price differences between pharmacies.According to NielsenIQ, the beauty industry has experienced regional growth, with the Africa–Middle East region posting a 27.1 percent surge in value year on year.
This growth is largely attributed to inflationary pressures rather than an increase in product volume, indicating that higher unit prices are driving revenues across the region.
Saudi Arabia's imports of beauty and personal care products have reached SR48.8 billion over the past five years, with France being the largest supplier during this period.The expanding distribution network across both major cities and peripheral regions is signaling growing investor interest in the sector, as evidenced by an increase in commercial registrations for wholesale pharmaceutical sales and cosmetic product storage.
The Ministry of Commerce reported approximately 6,700 commercial licenses for wholesale pharmaceutical sales and 6,300 licenses for cosmetic product storage as of September, reflecting the expansion of the sector and its increasing reliance on organized distribution channels.
