The pharmacy market in Uzbekistan is evolving towards an Eastern European model, according to an expert's opinion.
Vice President of the international pharmaceutical company STADA, Arminas Macevičius, shared insights with Podrobno.uz correspondent about how the market will change and what small pharmacies can expect.
Why are there so many pharmacies?
"There are indeed a lot of pharmacies in Uzbekistan – this is evident to the naked eye," – noted Macevičius.
According to the expert, one reason independent pharmacies currently dominate the market is their high level of entrepreneurship: businesses in the country quickly respond to opportunities.
"Uzbekistan is part of the Silk Road, and here the level of entrepreneurship is the highest among all the countries I visit. As soon as a business opportunity arises, people immediately take action. Remember the famous saying: if a market opens on the Moon, the first trader there will be an Uzbek," – pointed out Macevičius.
Another reason is economic viability: if a pharmacy is operational and profitable, it means there is demand for it.
This is also a result of the lack of strict consolidation: while the market is not divided among major players, independent pharmacies can compete.
Market Transformation
However, the situation is changing. Large companies are beginning to acquire smaller chains and sometimes even close them down. This has been the case in Kazakhstan. According to Macevičius, this is a way to regulate competition.
"I believe that the development of the pharmacy business in Uzbekistan will at least resemble that of Eastern Europe," – he thinks.
In Eastern Europe, the consolidation process has been completed: the market is divided among a few large players. In Russia, for instance, only 5–6 major chains remain, while independent pharmacies have virtually disappeared.
Furthermore, similar to Europe, Uzbek pharmacies are gradually evolving into general retail stores. In addition to medicines, they sell cosmetics, dietary supplements, medical products, and offer additional services such as consultations with ophthalmologists and cosmetologists.
"In all the markets where we operate, pharmacies are increasingly resembling retail – just with regulated sales," – emphasized the expert.
What awaits the pharmacy business in Uzbekistan?
These processes are directly linked to economic growth and consumer demand.
"As soon as the economic situation improves, especially in the regions, people will start prioritizing quality. This will accelerate the market transformation," – believes Macevičius.
Currently, discussions are underway in Uzbekistan regarding the certification of pharmacies according to international GPP standards. In the future, this may lead to new requirements.
For Reference. Good Pharmacy Practice (GPP) refers to pharmacy practices that meet the needs of individuals utilizing pharmacist services. To support such practices, it is crucial to have an established national system of standards and quality guidelines.
As a result, independent pharmacies will find it harder to compete; they may have to exit the market or merge with larger players. Larger chains will gain more influence.
Consequently, this will lead to a reduction in the number of small pharmacies, increased competition among chains, and a faster transition to a retail model with additional services.
It is worth noting that from September 2023 to September 2024, the pharmaceutical market in Uzbekistan grew by 13%. During this period, sales amounted to 20.3 trillion soums.