Functional Foods and Natural Health Products

Canada’s functional food and natural health products industry is made up of over 750 companies that generated over $16.4 billion in revenues in 2011.Footnote 1 Foreign investors are attracted by Canada’s agricultural production and agri-food export base which produced almost 84 million tons of grains, oilseeds and specialty cropsFootnote 2 making Canada the world’s eighth largest exporter of agricultural products.Footnote 3

“… Our decision to build in Ontario was made based on a number of reasons, such as proximity to transportation, the total cost to manufacture, and the very warm welcome and helpful support put forward by government. And as a fourth generation family owned business, our company thinks in generations - not years. We want to feel at home, and have an unwavering commitment to building a sustainable presence in the communities in which we do business…”

Martin Reintjes, Executive Vice President, Dr. Oetker

  • According to KPMG, food processing facilities benefit from a 12.8% labour cost advantage over the U.S., and enjoy a typical income tax rate of 22.2%, making it the second lowest in the G7.Footnote 4
  • Canada has an exceptional abundance of natural resources giving companies easy access to raw material needed for functional foods and natural health products.
  • Investors have access to an internationally recognized regulatory and food inspection system overseeing world-class standards and safe, effective products of the highest quality. So much that, approval for use in Canada, results in faster approvals in other markets.
  • Government spending in support of R&D in agriculture and agri-food has increased over the past years, and is estimated to be approximately $561 million for the 2011-12 fiscal year.Footnote 5

Leading Networks, Research Groups and Support Programs


Footnote 1

Statistics Canada, Results from the 2011 Functional Food and Natural Health Products Survey.

Return to Footnote 1 referrer

Footnote 2

Statistics Canada. The Daily. Production of principal field crops, November 2013.

Return to Footnote 2 referrer

Footnote 3

World Trade Organization. International Trade and Market Access Data Online

Return to Footnote 3 referrer

Footnote 4

KPMG. Competitive Alternatives

Return to Footnote 4 referrer

Footnote 5

Agriculture and Agri-Food Canada. An Overview of the Canadian Agriculture and Agri-Food System, 2013.

Return to Footnote 5 referrer