Canada Herbal Supplements Market Report

Canada Herbal Supplements Market Executive Summary

The Canada Herbal Supplements Market was valued at $420.80 Mn in 2023 and is predicted to grow at a CAGR of 6.2% from 2023 to 2030, to $641.13 Mn by 2030.

Herbal supplements, also known as botanicals, are dietary supplements that contain one or more herbs. These products, which include herbal, botanical, or phytomedicines, are derived from plants or botanicals to promote health or treat illnesses. Herbal supplements are intended specifically for internal use and are commonly available in solid forms such as capsules, pills, tablets, and lozenges, but can also be found in liquid or powder forms. Some popular herbal supplements include Echinacea, Garlic, Ginkgo, Ginseng, St. John's Wort, Saw Palmetto, and Valerian.

According to the World Bank, 2.5% of Canada's population experienced undernourishment, an insufficient dietary energy intake, in 2021. Additionally, approximately 25% of Canadians reported feeling quite a bit stressed or extremely stressed on most days. The market is driven by significant factors like growing health awareness, preference for natural products, and aging population. However, regulatory challenges, competition from pharmaceuticals, and distribution challenges restrict the growth and potential of the market.

Prominent players in this field include Nature’s Way, New Chapter, New Roots Herbal, Botanica Health, and Herbalife among others.

Market Dynamics

Market Growth Drivers

Growing Health Awareness: The rising awareness among consumers regarding natural health solutions and preventive healthcare is a significant driver for the herbal supplement market in Canada. This trend is driving demand as consumers increasingly seek out natural, holistic approaches to maintaining health and preventing illness.

Preference for Natural Products: The increasing demand for products that are perceived as natural, organic, and devoid of synthetic ingredients is a key driver for the herbal supplement market in Canada. Consumers prefer health products that align with natural lifestyles and dietary choices, contributing to the market's growth as more individuals prioritize wellness and sustainability.

Aging Population: The increasing proportion of Canadians aged 65 and older has risen from 14.1% in 2010 to 19.0% in 2022, projected to reach 22.5% by 2030. This demographic shift serves as a significant driver for the herbal supplement market in Canada, as older adults often seek dietary supplements for health maintenance and age-related wellness concerns, thereby expanding the market for herbal products catering to their specific health needs.

Market Restraints

Regulatory Challenges: Health Canada regulates herbal supplements under the Natural Health Products (NHP) Regulations, requiring thorough pre-market review and approval. Manufacturers must provide evidence of safety, efficacy, and quality, imposing stringent compliance standards that can increase costs and time-to-market, potentially restricting market access and innovation.

Competition from Pharmaceuticals: The presence of well-established pharmaceutical products and medications competing for similar health benefits and consumer trust poses a restraint on the herbal supplement market in Canada. This competition can make it challenging for herbal supplements to gain market share and consumer acceptance, especially when pharmaceutical options are widely trusted and recommended by healthcare professionals.

Distribution Challenges: Securing distribution channels and shelf space in retail outlets, especially mainstream pharmacies and supermarkets, poses a challenge for the herbal supplement market in Canada. This difficulty restricts the visibility and availability of herbal products to a broader consumer base, limiting their market reach and potential sales compared to more established pharmaceutical and health products.

Regulatory Landscape and Reimbursement Scenario

In Canada, Health Canada regulates natural health products (NHPs), including herbal supplements, under the Food and Drugs Act and the Natural Health Products Regulations (NHPR). Before NHPs can be sold, Health Canada evaluates their safety, efficacy, and quality. Manufacturers must submit detailed information on dose, potency, ingredients, and other factors to secure a product license. Public healthcare plans in Canada, including provincial and territorial health insurance plans, typically do not cover or reimburse natural health products (NHPs) like herbal supplements. These products are considered non-essential personal expenses.

Competitive Landscape

Key Players

Here are some of the major key players in the Herbal Supplement Market:

• Nature’s Way
• New Chapter
• New Roots Herbal
• Botanica Health
• Herbalife
• Natural Factors Canada
• Amway
• Jamieson Laboratories
• Webber Naturals
• Organika Health Products