The Canadian pharmaceutical market was valued at USD 51.56 billion in 2024 and is projected to reach USD 76.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.0% from 2025 to 2030. The market growth is driven by multiple factors including an aging population, rising healthcare expenditures, increased demand for innovative medications, and a strong emphasis on research and development. Furthermore, supportive government policies that enhance healthcare access and investments in biotechnology are contributing significantly to the sector’s expansion. Collectively, these elements foster growth and innovation within Canada’s pharmaceutical industry.

A key influence on market dynamics is Canada’s aging population. The number of individuals aged 65 and over is expected to reach 5.1 million in the next decade, significantly increasing the demand for pharmaceutical products and healthcare services. Older adults typically require medications to manage chronic diseases and age-related conditions, emphasizing the need for pharmaceutical companies to develop tailored drugs and healthcare solutions for this demographic. This shift highlights the importance of geriatric medicine and related healthcare services as central drivers of the Canadian pharmaceutical market.

Market growth is also supported by increasing demand for early and accurate disease diagnosis and enhanced therapies. Cancer remains the leading cause of death in Canada, responsible for over 28% of annual fatalities. In 2022, Canada reported approximately 233,900 new cancer cases and 85,100 cancer-related deaths, with about 121,100 men and 112,800 women diagnosed. The most common cancers include lung, breast, colorectal, and prostate cancer.

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Cardiovascular diseases (CVDs) also significantly impact mortality in Canada, accounting for 18.5% of all annual deaths. The rising prevalence of cancer and CVDs drives growth in related sectors such as nuclear medicine and radiopharmaceuticals. According to the Canadian Institute for Health Information (CIHI) in July 2022, roughly 2.4 million Canadians suffer from heart disease. The Heart and Stroke Foundation reports that 9 out of 10 Canadians have at least one risk factor for heart disease, stroke, or vascular cognitive impairment. The economic burden of cardiovascular disease is estimated at USD 21.2 billion annually, including direct and indirect costs, while stroke-related costs reach around USD 3.6 billion per year. Government collaborations, such as those between CIHI and the Canadian Cardiovascular Society (CCS), aim to improve cardiac care quality nationwide. These initiatives, combined with the growing incidence and mortality of targeted diseases, fuel demand for innovative and effective therapies.

In March 2023, the Canadian government allocated USD 59.0 million to the Canadian Critical Drug Initiative to boost drug research, commercialization, and manufacturing in Alberta. This funding supports the construction of a 40,000-square-foot manufacturing facility and the upgrade of a 72,000-square-foot biotechnology business development center in Edmonton. Led by Applied Pharmaceutical Innovation in partnership with the Li Ka Shing Applied Virology Institute at the University of Alberta, the facility will produce small-molecule drugs and feature a fill-finish line for drug packaging and labeling.

Key Market Trends Insights:

• Conventional drugs (small molecules) held the largest share of 54.7% in 2024, continuing to be the backbone of Canada’s pharmaceutical market by driving research and innovation.
• The branded drugs segment dominated the market in 2024, supported by a strong government pricing control system. The Canadian Patented Medicine Prices Review Board (PMPRB), established in 1987, regulates maximum prices for patented medications, ensuring affordability.
• Prescription medications accounted for the largest market share in 2024, fueled by the ongoing need for specialized treatments for chronic and complex diseases such as cancer, diabetes, and cardiovascular disorders.
• The cancer segment led the market in 2024, driven by increasing cancer prevalence and advancements in targeted therapies and immunotherapies.
• Oral medications represented the largest segment by delivery method in 2024, favored for their noninvasive, cost-effective nature and high patient compliance, making them the preferred choice for treating diverse medical conditions.

Market Size Forecast:

• Market Size in 2024: USD 51.56 Billion
• Projected Market Size in 2030: USD 76.9 Billion
• CAGR (2025–2030): 7.0%

Key Canadian Pharmaceutical Companies:

Leading players in the Canadian pharmaceutical market include F. Hoffmann-La Roche Ltd, Novartis AG, GSK plc, Pfizer Inc., and Merck Co., Inc. These companies focus on innovation across therapeutic areas and development of biologics, small molecules, and diagnostic solutions.

• F. Hoffmann-La Roche Ltd specializes in oncology, immunology, neuroscience, and infectious diseases, offering innovative biologics and diagnostics to improve patient care globally.
• Pfizer Inc. delivers medicines and vaccines in oncology, cardiology, immunology, and infectious diseases, emphasizing research-driven treatments for complex health issues.

Other key companies include:

• Novartis AG
• GSK plc
• Merck Co., Inc.
• AstraZeneca
• Johnson Johnson Services, Inc.
• Sanofi
• Eli Lilly and Company
• AbbVie Inc.

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Conclusion

The Canadian pharmaceutical market is set for strong growth over the coming years, driven by demographic shifts, increasing disease burden, and continuous innovation in drug development. Government support and investments in biotechnology further accelerate market expansion. With a robust presence of major global pharmaceutical companies and a well-regulated pricing environment, the market is well-positioned to meet rising demand for effective and innovative therapies, particularly for cancer, cardiovascular diseases, and chronic conditions prevalent among Canada’s aging population.