Canada Pharmaceutical Market

Canada Pharmaceutical Market Size Overview: 

The Canada pharmaceutical market size reached USD 37,390.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 62,105.1 Million by 2033, exhibiting a growth rate (CAGR) of 5.80% during 2025-2033. The market is propelled by the aging population and the rising prevalence of chronic diseases, government support and healthcare policies, and robust pharmaceutical research and development (R&D) sector, supported by world-class research institutions thereby surging the Canada pharmaceutical market share.

Canada Pharmaceutical Market Analysis:

• Major Drivers: Aging population, rising chronic diseases, and universal healthcare support demand. Government initiatives and biotech innovations also drive growth in prescription drug utilization and pharmaceutical R&D investment are some of the factor aiding the Canada pharmaceutical market growth.
• Key Market Trends: Increased use of biologics, biosimilars, and personalized medicine. Digital health integration, AI in drug discovery, and value-based pricing are shaping market behavior and stakeholder strategies.
• Market Opportunities: Growing investment in biotech startups, demand for rare disease treatments, and export potential. Favorable regulations for clinical trials and partnerships with academic institutions present room for innovation and expansion.
• Market Challenges: Strict pricing regulations, patent expiries, generic competition, and regulatory complexity hinder growth. Access to innovative therapies remains uneven across provinces, impacting national market uniformity and profitability in the Canada pharmaceutical market analysis.

Canada Pharmaceutical Market Trends:

Increasing Aging Population and Chronic Diseases

The Canadian pharmaceutical market is primarily driven by the country's aging population and the increased prevalence of chronic diseases. According to Statistics Canada, more than 861,000 persons aged 85 and older were counted in the 2021 Census, more than double the figure from the 2001 Census. The population aged 85 and older is one of the fastest-growing age groups, rising 12% from 2016. Currently, 2.3% of the population is aged 85 and more. As the population ages, the need for pharmaceuticals and healthcare services rises. Chronic disorders such as cardiovascular disease, diabetes, arthritis, and Alzheimer's disease are increasingly common in the elderly, necessitating continuing medication and therapy. This demographic shift creates a sustained demand for pharmaceuticals, including both prescription and over-the-counter drugs. Furthermore, the increasing incidence of chronic diseases among younger populations due to lifestyle factors such as poor diet, lack of exercise, and stress further fuels the Canada pharmaceutical market demand. The prevalence of chronic conditions increased from 2015 to 2021, including high blood pressure (16.9% to 17.7%), heart disease (4.4% to 4.9%) and obesity (26.1% to 29.2%). However, the lung cancer incidence rate among males declined from 72.2 per 100,000 people in 2015 to 62.5 per 100,000 in 2021.

Government Policies

Government assistance and healthcare policy have a considerable impact on the Canadian pharmaceutical business. The Canadian government has implemented a number of steps to ensure that pharmaceuticals are both accessible and affordable to its inhabitants. For instance, the Patented Medicine Prices Review Board (PMPRB) protects and informs Canadian consumers by reviewing the prices of patented medicines sold in Canada, and by reporting on pharmaceutical trends. Furthermore, the public healthcare system, which covers a large proportion of the population, promotes the use of pharmaceutical items. The government also invests in healthcare infrastructure and research, creating an atmosphere that promotes pharmaceutical innovation and growth. Initiatives aimed at boosting generic drug use and biosimilars also contribute to market dynamics because they provide cost-effective alternatives to branded medications.

Latest News and Developments:

• In June 2025, Canada’s Drug Agency has initiated a public consultation on a proposed list of essential prescription medicines and related products. Mandated by the Pharmacare Act, the effort is guided by a 12-member advisory panel that has conducted research and produced a discussion paper detailing the selection methodology, criteria for inclusion or exclusion, and processes for updates. The proposed list is intended to lay the groundwork for a potential national formulary.
• In February 2025, Sunshine Biopharma's Canadian subsidiary, Nora Pharma, launched NIOPEG, its first biosimilar drug, comparable to NEULASTA (Pegfilgrastim). Targeting chemotherapy patients, this marks a strategic entry into Canada’s high-value biologics market. With strong liquidity and 35.5% revenue growth, the company plans to launch 12+ drugs in 2025. Canada’s biologics market, worth $10B in 2020, offers growth potential. Sunshine is also advancing mRNA and protease inhibitor research.

Canada Pharmaceutical Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type and nature.

Type Insights:

• Pharmaceutical Drugs
  • Cardiovascular Drugs
  • Dermatology Drugs
  • Gastrointestinal Drugs
  • Genito-Urinary Drugs
  • Hematology Drugs
  • Anti-Infective Drugs
  • Metabolic Disorder Drugs
  • Musculoskeletal Disorder Drugs
  • Central Nervous System Drugs
  • Oncology Drugs
  • Ophthalmology Drugs
  • Respiratory Diseases Drugs
• Biologics
  • Monoclonal Antibodies (MAbS)
  • Therapeutic Proteins
  • Vaccines

The report has provided a detailed breakup and analysis of the market based on the type. This includes pharmaceutical drugs (cardiovascular drugs, dermatology drugs, gastrointestinal drugs, genito-urinary drugs, hematology drugs, anti-infective drugs, metabolic disorder drugs, musculoskeletal disorder drugs, central nervous system drugs, oncology drugs, ophthalmology drugs, and respiratory diseases drugs) and biologics (monoclonal antibodies (MAbS), therapeutic proteins, and vaccines).

Nature Insights:

• Organic
• Conventional

A detailed breakup and analysis of the market based on the nature have also been provided in the report. This includes organic and conventional.

Regional Insights:

• Ontario 
• Quebec 
• Alberta 
• British Columbia 
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Canada Pharmaceutical Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada pharmaceutical market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Canada pharmaceutical market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada pharmaceutical industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.