Uzbekistan is leading the region in pharmaceutical market growth, according to a new study by EY, which highlights strong expansion alongside Kazakhstan as the core drivers of regional demand.

The report shows that Uzbekistan’s pharma sector continues to demonstrate resilience despite global economic pressures, supported by rising domestic consumption and steady market development, The Caspian Post reports via Uzbek media.

One of the defining features of the market is the dominance of the commercial segment, with retail sales accounting for around 96% of total pharmaceutical turnover. Analysts say this underscores the strength of consumer demand and accessibility of medicines across the country.

The study involved 15 major international and local pharmaceutical players, more than half of which are headquartered in Western Europe. Currently, 67% of companies operate in Uzbekistan through representative offices, signaling an early-stage market with significant potential for future local production.

Sales are largely driven by medicines for chronic and socially significant diseases, reflecting both demographic trends and evolving healthcare needs across the country.

EY partner Sergey Bachmanov notes that the sector’s rapid expansion is supported by population growth and government initiatives aimed at strengthening healthcare infrastructure.

Despite strong growth prospects, businesses remain cautious about regulatory changes. Around 60% of surveyed companies report potentially delaying new investment projects until a more stable and predictable tax environment is established, particularly regarding VAT regulations.

While large-scale factory investments remain measured, the outlook for 2026 is optimistic. About 40% of market participants expect revenue growth of 5-10%.

Key trends include the rapid rise of online pharmaceutical sales and digital distribution channels, signaling a structural transformation of the market focused on efficiency, accessibility, and adapting product portfolios to the needs of Uzbek consumers.

As the sector evolves, Uzbekistan is positioning itself as one of the most dynamic pharmaceutical markets in Central Asia.