Kazakhstan’s pharmaceutical market is undergoing transformation:  EY survey reveals key growth drivers and risks for the next two years

• Optimization of pharmaceutical product portfolios is expected to become the dominant trend over the next two years.
• The market continues to grow in monetary terms, despite a decline in consumption in physical units. The retail segment accounts for 57% of the total market and remains a priority for the majority of the companies surveyed.
• Key challenges are linked to state price regulation: 85% of the study participants believe that current pricing mechanisms may limit patient access to medicines. Companies emphasize the need for a more predictable and transparent regulatory environment.

Almaty, 5 February 2026. EY has released the results of its survey: Assessment of Trends and Prospects for the Development of the Pharmaceutical and Medical Products Markets of the Republic of Kazakhstan, conducted in December 2025. The survey highlights the key growth drivers, structural challenges, and strategic expectations of industry participants for the coming years.

The survey involved 19 pharmaceutical companies with a diverse medicinal product portfolio.

35% of respondents are headquartered in Eastern Europe, while 23% are based in Western Europe. In addition, 74% of participating companies are registered in Kazakhstan as limited liability companies, underscoring the significant share of organizations with a local presence.

33% of companies surveyed report that more than half of their product portfolio consists of innovative medicinal products. 28% of respondents have a combined portfolio, while another 28% indicate that OTC monograph drugs are predominant in their assortment.  

For 50% of the companies surveyed, cardiology and neurology represent the leading therapeutic areas in their product portfolio. Additionally, 39% of respondents report that their portfolios include medicinal products from more than 5 therapeutic areas.

Most respondents are importers of medicinal products and local distributors. Many of them also provide marketing, advertising, promotional, and other related services to group companies, reflecting a broader strategic trend towards deeper integration and long-term presence in the pharmaceutical market of the Republic of Kazakhstan.

According to the survey respondents, the key trend for the next two years will be the reduction and optimization of product portfolios, driven by changes in government regulation and macroeconomic factors. Companies plan to reallocate resources towards more profitable and higher-demand categories. Among other notable trends, respondents highlighted consolidation within the retail segment, accelerated growth of online sales, and the gradual withdrawal of original medications and branded generics from the market due to pricing pressures and regulatory constraints.

Svetlana Cheban, EY Partner and Head of Tax Services for Healthcare Sector Clients, comments: “The market is demonstrating growth, but the context is shifting. Companies are adapting to macroeconomic factors, government price regulation requirements, and the introduction of VAT in 2026, optimizing their portfolios, and focusing on the most profitable areas. The retail segment remains a key driver, while digital sales channels are gaining increasing importance. We observe strong demand from businesses for greater predictability in government regulation – a prerequisite for investment, localization, and the development of capabilities within the country. It is also encouraging that the market participants are striving for more precise product sourcing and improved supply-chain efficiency. These efforts will support the sector’s long-term sustainability and help insure continued access to essential therapies for patients.”

It is worth noting that the pharmaceutical market in Kazakhstan continues to grow in monetary terms, while consumption in physical units is declining. This trend indicates the presence of an inflationary component and rising costs in certain product categories, which may lead to a redistribution of demand towards more affordable therapeutic options.

The retail segment accounts for 57% of the Kazakhstan’s total pharmaceutical market and is identified as a priority by 83% of the survey participants. At the same time, nearly 60% of companies continue to operate within the state distribution channel, maintaining a balanced and diversified strategy across the sectors.

Most companies expect the market to grow by 5-10% over the next period, driven primarily by the commercial segment. Key growth factors include the expansion of sales channels, strengthening of brands in priority therapeutic areas, more precise positioning within price segments, and digitalization of marketing and logistics process.

According to most international companies, the key incentive for localizing production in Kazakhstan would be the availability of guaranteed purchase volumes for locally produced medicines, which would provide the needed investment predictability.

The survey participants associate the key challenges facing the industry with the current state price-regulation policy. Notably, 85% of respondents believe that existing pricing approaches could reduce the availability of medicines for the population. Companies emphasize the need for a predictable and transparent regulatory environment, as well as mechanisms that support sustainable supply chains and the development of local production.

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