Strategic Shift in Georgia’s Pharmaceutical Market

Georgia, a country without a strong tradition of large-scale pharmaceutical manufacturing, has in recent years positioned itself as a regional hub for the re-export of packaged medicinal products. The latest statistics reveal a compelling trend: while export value is rising, volume is declining—a divergence that speaks volumes about the evolving dynamics of the sector.

In 2024, Georgia exported 1,826 tons of packaged medicine worth USD 129.5 million. Interestingly, the value rose by 2.3%, but the volume decreased by 11.7% compared to the previous year. This clearly signals one thing: an increase in per-ton export prices. In practical terms, Georgia is exporting higher-priced or more valuable medicines, or raising prices across the board.

It’s important to note that over 70% of these exports are re-exports—medications that are not produced in Georgia, but rather imported, relabeled, repackaged, and then exported. In 2024, this re-exported share amounted to 1,305 tons. This model underscores Georgia’s strategic use of its geographic advantage, serving as a logistical corridor between the West and Central Asia.

The profitability of this approach is reinforced by rising unit prices. For example, while in 2023 the average price per ton hovered around USD 67,600, this figure increased significantly in 2024. The growth is particularly notable in key markets like Uzbekistan and Azerbaijan, which together account for over 75% of exports. Uzbekistan leads with USD 70.3 million and 769 tons, followed by Azerbaijan with USD 27.2 million and 603 tons.

Georgia’s top five export destinations—Uzbekistan, Azerbaijan, Tajikistan, Armenia, and Turkmenistan—all fall within the post-Soviet corridor, highlighting the country’s emerging role not as a producer but as a nimble, mobile, and investment-friendly distribution hub for the region.

In the first quarter of 2025, pharmaceutical exports totaled USD 25.8 million and 344 tons. While this reflects a 11% drop in value and a 15% drop in volume year-over-year, it is not necessarily a sign of systemic decline. Instead, it may represent a temporary adjustment or a market correction following a particularly strong performance in 2024.

The crucial question ahead is this: Will Georgia remain merely a re-export hub, or can it develop its own pharmaceutical production capacity? For now, the country has successfully monetized its logistical advantage. But the next phase must focus on attracting investment, strengthening local manufacturing, and supporting pharmaceutical innovation—laying the foundation for a shift from a re-export-driven model to a production-based economic strategy.