Canada Pharmaceutical Market To Reach $76.86 Billion By 2030

Canada Pharmaceutical Market Growth & Trends

The Canada pharmaceutical market size is expected to reach a value of USD 76.86 billion by 2030, according to a new report by Grand View Research, Inc., exhibiting a CAGR of 6.88%. This market is a significant and highly regulated industry, influenced by several driving factors. One of the primary drivers is Canada's aging population. With a growing number of seniors, there's a heightened demand for pharmaceuticals and healthcare services. For example, medications for conditions like osteoarthritis and Alzheimer's are in high demand due to the aging demographic.

Government regulation also plays a crucial role in shaping the pharmaceutical market. Health Canada, the country's regulatory body, oversees drug safety and efficacy. For instance, the approval and regulation of prescription drugs like insulin and antibiotics ensure the quality and safety of medicines available in the market. Research and development (R&D) efforts are another crucial factor. Canada boasts a strong R&D sector, with pharmaceutical companies like Apotex and Valeo Pharma conducting innovative research. For example, the development of biologic drugs for conditions like cancer and autoimmune diseases benefits patients and contributes to economic growth.

Moreover, product launches by key players in the market will further propel the Canadian pharmaceutical market growth in the forecast period. For instance, the approval of Arexvy, a respiratory syncytial virus (RSV) vaccine, for individuals aged 60 and older is a significant development in Canada's healthcare landscape. RSV is a common cause of lower respiratory tract disease (LRTD) in older adults, making this vaccine a valuable addition to the preventive measures available. This approval expands the vaccine portfolio of GSK in Canada and addresses a specific healthcare need for the aging population. The introduction of Arexvy is especially noteworthy as it marks the first RSV vaccine for older adults to be approved in the country. RSV can lead to severe respiratory illnesses, and older adults are a particularly vulnerable demographic.

The timing of its availability ahead of the 2023/24 peak RSV season is crucial, as it ensures that older adults have access to protection when they need it the most. It demonstrates the commitment to public health and underscores the importance of proactive vaccination strategies in safeguarding the well-being of the aging population in Canada. This approval contributes to the broader efforts to enhance healthcare and protect vulnerable populations against infectious diseases.

However, stringent regulatory processes essential for safety can delay drug approvals and market access. In addition, price controls and negotiations between pharmaceutical companies and the government can impact profitability. Intellectual property issues, including patent disputes and generic competition, may hinder market growth. In addition, economic factors, such as healthcare budget constraints and the cost of research and development, can pose challenges for industry and patients in accessing innovative medications.

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Canada Pharmaceutical Market Report Highlights

• Based on drug type, the conventional drugs (small molecules) segment held the largest market share in 2023, owing to molecule potency, complexity of drug products, industry composition, and manufacturing trends, which have contributed to the continued dominance of small molecule drugs in the pharmaceutical industry

• The branded segment dominated the Canadian pharmaceutical market in 2023 and is anticipated to grow at the fastest growth rate. Launch of new products is the major factor driving the segment growth

• Based on the type, the prescription segment dominated the market in 2023 and is anticipated to grow at the fastest CAGR rate owing to the increasing expenditures on prescription drugs in Canada

• Based on the disease, the cancer segment dominated in terms of market share in 2023 and is anticipated to grow at the fastest CAGR rate owing to the increasing cancer incidences coupled with launch of new products

• Based on the route of administration, the oral segment dominated the market in 2023. Oral dosage forms are preferred due to their affordability, ease of manufacturing, and patient-friendly administration

• The tablet segment held the largest share of the market in 2023. This growth can be attributed to the widespread availability of tablet-based products in various formulations, including film-coated, enteric-coated, orally disintegrating, and effervescent tablets. In addition, the introduction of 3D-printed tablets tailored to meet personalized needs has significantly contributed to the expansion of this segment

• Based on age group, the geriatric segment dominated in terms of market share in 2023. The demographic shift towards seniors is a prominent trend in Canada, with seniors becoming the fastest-growing demographic

• Based on the end-use, the hospital segment dominated the market in 2023. With the increasing number of hospitals in Canada, pharmaceutical drugs are in high demand for various medical treatments

Canada Pharmaceutical Market Segmentation

Grand View Research has segmented the Canada pharmaceutical market based on drug type, product, type, disease, route of administration, formulation, age group, and end-user:

Canada Pharmaceutical Drug type Outlook (Revenue, USD Billion, 2018 - 2030)

• Biologics & Biosimilars (Large Molecules)

  • Monoclonal Antibodies

  • Vaccines

  • Cell & Gene Therapy

  • Others

• Conventional Drugs (Small Molecules)

Canada Pharmaceutical Product Outlook (Revenue, USD Billion, 2018 - 2030)

• Branded

• Generics

Canada Pharmaceutical Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Prescription

• OTC

Canada Pharmaceutical Disease Outlook (Revenue, USD Billion, 2018 - 2030)

• Cardiovascular diseases

• Cancer

• Diabetes

• Infectious diseases

• Neurological disorders

• Respiratory diseases

• Autoimmune diseases

• Mental health disorders

• Gastrointestinal disorders

• Women’s Health Diseases

• Genetic and Rare genetic diseases

• Dermatological conditions

• Obesity

• Renal diseases

• Liver conditions

• Hematological disorders

• Eye conditions

• Infertility conditions

• Endocrine disorders

• Allergies

• Others

Canada Pharmaceutical Route of Administration Outlook (Revenue, USD Billion, 2018 - 2030)

• Oral

• Topical

• Parenteral

  • Intravenous

  • Intramuscular

• Inhalations

• Other Routes of Administration

Canada Pharmaceutical Formulation Outlook (Revenue, USD Billion, 2018 - 2030)

• Tablets

• Capsules

• Injectable

• Sprays

• Suspensions

• Powders

• Other Formulations

Canada Pharmaceutical Age Group Outlook (Revenue, USD Billion, 2018 - 2030)

• Children & Adolescents

• Adults

• Geriatric

Canada Pharmaceutical End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• Hospitals

• Clinics

• Others

List of Key Players in the Canada Pharmaceutical Market

• F. Hoffmann-La Roche Ltd.

• Novartis AG

• GlaxoSmithKline plc.

• Pfizer, Inc.

• Merck & Co., Inc.

• AstraZeneca

• Johnson & Johnson Services, Inc.

• Sanofi

• Eli Lilly and Company

• AbbVie, Inc.