RIYADH: 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, which covered major pharmacy chains including Nahdi, Al-Dawaa, and Whites, as well as retail outlets such as Dar Al-Amirat and Enaya Stores, highlighted significant markups on popular items.
Cetaphil cream, for example, sold for SR42 ($11.20) at wholesale outlets, but fetched SR117 in pharmacies. Dettol soap and Koleston hair dye were similarly marked up, selling for 103 percent and 121 percent higher in retail settings, respectively.
The disparity, described by experts as irrational and unjustified, has drawn consumer complaints and prompted calls for regulatory intervention.
“Economic expert Mohammed Al-Abbas explained that differences of up to 150 percent exceed reasonable limits, noting that normal profit margins do not exceed 15 percent of the cost,” Al‑Eqtisadiah reported, adding that he urged the Competition Authority to study the market and regulate practices.
The Saudi Food and Drug Authority told Al‑Eqtisadiah it monitors pharmacies, including wholesale and private outlets, through direct inspections and joint campaigns with other government entities.
Professor Saad Al-Talhab, a dermatology consultant, said consumers struggle to make purchasing decisions amid these price gaps and called for closer monitoring of pricing mechanisms.
Abdulwahab Al-Qahtani, professor of economics at Al Yamamah University, said low consumer awareness enables some pharmacies to impose significantly higher prices.
The sharp domestic price disparities highlighted by Al-Eqtisadiah come amid broader regional trends showing significant price-led growth in the beauty sector.
According to NielsenIQ, the beauty industry recorded a 7.3 percent increase in value year on year, with the Africa–Middle East region posting a 27.1 percent surge. Analysts attribute much of this growth to inflationary pressures rather than a corresponding rise in product volume, indicating that higher unit prices are driving revenues across the region.
According to the General Authority for Statistics, ֱ’s imports of beauty and personal care products reached SR48.8 billion over the past five years, with an annual average of SR9.7 billion. Imports in the first half of 2025 totaled SR5.4 billion, suggesting this year’s figures may exceed the five-year average.
France was the largest supplier during the period, exporting SR9.4 billion worth of products to the Kingdom, accounting for 19 percent of total imports.
The Kingdom’s dependence on diverse international sources has placed greater responsibility on storage facilities and distributors to ensure uninterrupted supply and compliance with transportation and storage standards.
Sector analysts indicate that a rise in commercial registrations points to growing investor interest and a widening distribution network across both major cities and peripheral regions, according to Al-Eqtisadiah.
As of September, the Ministry of Commerce reported approximately 6,700 commercial licenses for wholesale pharmaceutical sales and 6,300 licenses for cosmetic product storage, reflecting the expansion of the sector and its increasing reliance on organized distribution channels.
