Canada’s Functional Food and Natural Health Products Industry

Venture into Success
CANADA – the ideal place to invest and expand operations to serve the growing and profitable North American health and wellness market. As industry leaders, Canadian functional food and natural health product companies are using innovation and advanced technologies in product development and manufacturing to turn quality ingredients into exceptional products.

This industry is world renowned for quality and innovation. Backed by an internationally recognized inspection system, a network of state-of-the-art research facilities, and a collaborative environment among governments, universities, health institutions and industry, this vibrant and prosperous sector offers a diverse range of services and products with proven health benefits.

According to Statistics Canada, approximately 400 Canadian companies generated revenues of C$ 2.9 billion and exported C$ 545 million worth of products abroad for the health and wellness market (Statistics Canada 2007). Canadian-based companies are also serving the world’s wealthiest functional foods and beverages market – the U.S., a market estimated to be worth US$31 billion in 2006 (Nutrition Business Journal).

Canadian companies are active in the development and manufacturing of nutritionally valuable health ingredients and compounds. Examples include probiotics and fermented beverages, omega-3 fatty acids from marine sources, flax bioactives, phytosterols and stanols, beta-glucans, fenugreek gums, essential fatty acids including gamma-linolenic acid (GLA) and conjugated linoleic acid (CLA), and phytochemicals, as ingredients for natural health products and dietary supplements. Canadian companies are also pursuing research in other areas to identify new opportunities in prebiotics, vegetable proteins and hydrocolloids (e.g., dietary and soluble fibres).

Canadian Health and Wellness Industry

Number of Companies with Functional and Health Products in the Market

Sources: Functional Foods and Nutraceuticals Survey, Statistics Canada 2007 Nutrition Business Journal, Functional Foods IX, 2007

The Canadian Advantage

Access to the North American Market

The North American Free Trade Agreement (NAFTA) provides Canadian-based companies with duty-free access to a market of more than 435 million consumers who are becoming increasingly concerned with personal health and are seeking food-based alternatives to improve health and wellness.

The Research & Development Advantage

Canada’s R&D tax treatment is among the most generous of the G-7 countries. The Canadian government also supports a number of R&D related assistance programs to encourage product development and the commercialization of new and innovative

Competitive Location for Clinical Trials

Canada offers a competitive advantage for clinical trials based on quality, turnaround time and cost when compared to the U.S. (KPMG). In addition, Canada’s diverse multi-ethnic population offers a broad genetic heterogeneity, providing companies with an opportunity to examine clinical outcomes based on numerous demographics.

Innovative Research

From coast to coast, Canada has developed many world renowned research facilities, clusters and ‘centres of excellence’ to form a strong network of research and scientific innovators who focus on modifying raw materials and developing new technologies.

Skilled and Competitive Labour Force

Canada leads the world in the percentage of citizens with a university or college education and provides employers with access to a multilingual labour force. Canada's public healthcare system helps businesses maintain a healthy work force while providing an internationally competitive edge by virtue of its universal medical benefits.

Natural Resources

Canada’s rich and vast natural resources, including fresh water and diverse plant, animal and marine life, are proven to be building blocks for a high-tech industry that produces an array of high quality agri-food products.

For additional information about Canada’s agriculture, food and beverage, and functional food and natural health products industries, visit: www.ats.agr.gc.ca