Uzbekistan’s Paper Industry in 2017–2025

The paper industry is one of the core segments of manufacturing, supplying packaging, sanitary and hygiene products, printing materials, and technical paper products to virtually all sectors of the economy.

The growth of e-commerce, the food and pharmaceutical industries, expanding consumer goods production, and the gradual replacement of certain types of plastic packaging are generating sustained demand for paper, cardboard, and related products.

Against this backdrop, the development of the paper industry is becoming increasingly important for Uzbekistan. In 2017–2025, the industry went through a period of rapid quantitative expansion. At the same time, it continues to face a number of challenges.

Key Industry Development Trends in 2017–2025

In 2017–2025, the output of Uzbekistan’s paper industry increased 2.4-fold to 10.2 trillion sums. Average annual growth was around 10.9%, exceeding the average growth rate of the manufacturing sector, which stood at 6.9%. Over the period under review, the industry increased its share of GDP from 0.12% to 0.17%.

The industry’s production base consists primarily of corrugated paper and cardboard packaging, sanitary and hygiene products, pulp made from non-wood fibrous materials, napkins and towels, household sanitary paper, cellulose wadding, and webs made from cellulose fibers.

Paper and paper product manufacturing is characterized by a high degree of geographical concentration. In 2025, Tashkent city accounted for 44.7% of total output, while the Tashkent region contributed another 26%. Thus, the capital agglomeration generated 70.7% of the industry’s total output. It was followed by the Andijan region with 7.2%, the Samarkand region with 6.3%, and the Fergana region with 6.1%.

Investment activity in the industry has intensified significantly. Fixed capital investment increased from 134 billion sums in 2017 to 1.6 trillion sums in 2025. In 2025 alone, investment rose by 35%. Foreign investment reached $89 million, including $61 million in foreign direct investment.

The number of operating enterprises increased from 1,000 in 2016 to 1,400 in 2025. Payroll employment rose from 7,000 people in 2017 to 13,000 in 2024, an increase of 84%. The average number of employees per enterprise grew from 6.1 to 9.7. This points to a gradual increase in the scale of production, although the industry continues to be represented primarily by small enterprises.

Exports of paper industry products increased from $20 million in 2016 to a record $130 million in 2022. Export deliveries then declined for three consecutive years, reaching $83 million in 2025. This was more than four times the 2016 level, but 36% below the 2022 peak. The decline was driven primarily by a reduction in exports of cotton pulp by 18% compared with 2022, feminine sanitary and hygiene products by 85%, and wallpaper by 60%.

The largest export markets in 2025 were Kazakhstan, Tajikistan, South Korea, Azerbaijan, and Russia. The five leading destinations accounted for 52% of total exports, while Central Asian countries among the top ten markets accounted for 40%. The region therefore represents the natural core market for Uzbekistan’s paper product exports, while the overall geography of exports remains relatively diversified.

Imports increased 3.1-fold in 2016–2025, from $179 million to $552 million. The largest import categories included sanitary and hygiene products, wallpaper, multi-ply kraft paper and paperboard, paper and paperboard in rolls, and other products. The main suppliers were Russia, China, Türkiye, Germany, and Kazakhstan, which together accounted for 86% of imports.

Uzbekistan is therefore a net importer of paper products. In 2025, imports exceeded exports by 6.7 times, while the trade deficit amounted to $469 million. The largest deficits were recorded in sanitary and hygiene products, wallpaper, multi-ply kraft paper, and paperboard.

Priorities for Further Development

In terms of output, the paper industry already exceeds a number of individual industrial segments in Uzbekistan, including the tobacco, leather and footwear, pharmaceutical, and furniture industries. It also holds a leading position at the regional level. In 2025, industry output was estimated at $809 million, compared with $327 million in Kazakhstan, $26 million in Tajikistan, and $18 million in Kyrgyzstan.

The industry has therefore already reached a scale that calls for a dedicated long-term state policy and systematic coordination.

Despite the relatively rapid growth of the past decade, the industry continues to face a number of constraints and challenges. The key structural constraint is the absence of a large domestic forest resource base. Uzbekistan cannot simply replicate the model used by countries with well-developed wood pulp industries.

In this context, a competitive model should be based on waste paper recycling, the use of cotton linters, and economically viable agricultural fibers. Further measures are also needed to streamline the activities of waste paper collection, sorting, and baling facilities, as well as the collection and processing of raw materials for the industry.

Promising areas for expanding production and broadening the product range include containerboard and testliner made from recycled paper, corrugating medium, corrugated packaging, tissue paper, paper sacks, labels, and food and pharmaceutical packaging. Significant imports of these products indicate the presence of substantial domestic demand.

At the same time, it is desirable to restore export growth, primarily through higher exports of finished products. Central Asia, the Caucasus, and Afghanistan remain promising markets, where demand for paper products continues to grow.

Conclusion

In 2017–2025, Uzbekistan’s paper industry moved to a significantly higher level of production. Employment increased, the number of enterprises expanded, the industry’s role within manufacturing strengthened, and new production capacities were established.

At the same time, the industry’s qualitative transformation remains incomplete. Further development should focus on building a competitive industrial base for processing recycled and locally available fibrous raw materials, producing cardboard, modern packaging, and finished paper products, and increasing local value added with a view to both domestic and export markets.

Ruslan Abaturov, CERR