This statistic displays the total health expenditures in Canada on drugs from 2005 to 2024. For 2024, it was projected that the country would spend nearly 51 billion Canadian dollars on pharmaceutical drugs.

In 2024, non-prescription drug expenditures in Canada is forecasted to amount to some *** billion Canadian dollars, while spending on prescription drugs will rise to some **** billion Canadian dollars. This statistic displays the total prescription and non-prescription drug expenditures in Canada from 1975 to 2024.

This table contains 1288 series, with data for years 1997 - 2009 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (14 items: Canada; Newfoundland and Labrador; Prince Edward Island; Nova Scotia; ...); Household spending, health care (23 items: Total health care; Direct health care costs to household; Health care supplies (for example, first aid kits, wheelchairs); Medicinal and pharmaceutical products; ...); Statistics (4 items: Average expenditure; Percent of households reporting; Estimated number of households reporting; Median expenditure per household reporting).

In 2023, total R&D spending in the industry reached some 1.07 billion Canadian dollars, while the highest amount in the given period was in 2007 with some 1.33 billion dollars. This statistic displays the total research and development expenditures from the pharmaceutical industry in Canada between 2004 and 2023. The pharmaceutical industry in Canada both develops and manufactures brand name and generic pharmaceuticals.

Pharmaceutical spending per capita in Canada stood at nearly 900 U.S. dollars in 2023 (constant prices). In comparison, the United States reported per capita spending of nearly 1,500 U.S. dollars. As for medical goods and services in general, the U.S. is among the countries with the highest health costs worldwide. The higher costs in the United States are particularly obvious when compared to other high-income, developed countries. Higher drug prices in the U.S.Higher spending on pharmaceuticals is less impacted by higher drug usage by Americans and more by significantly higher drug prices in the United States. While in other countries, drug prices are regulated more or less by governments, the U.S. leaves drug pricing to market competition. As an outcome, the U.S. market is the most profitable for pharmaceutical companies. For example, the price for blockbuster drug Humira was six times higher in the United States than in Germany (2022). Rx drug usage in the U.S.Almost half of all Americans have taken at least one prescription medicine within the preceding month. Generally, women take more prescribed drugs than men, although the difference decreased significantly over the past two decades. In the United States, among the therapeutic areas where spending is the highest are diabetes, oncology, autoimmune, and respiratory diseases. On the other hand, antihypertensives and mental health drugs are the leading classes based on number of prescriptions filled.

In 2024, total drug expenditure in Canada was estimated at nearly ** billion Canadian dollars. Sorted by the type of drug and finance source, over ** billion Canadian dollars was spent by the private sector, with over ** billion on prescribed drugs. All types of drug expenditure have increased since 2012. This statistic displays the total drug expenditures in Canada by drug type and source of finance in 2012 and 2024.

Forecast: Total Pharmaceutical Spending in Canada 2024 - 2028 Discover more data with ReportLinker!

Canadian pharmacies and drug stores have been experiencing moderate volatility. Drug stores have benefitted from growing health-related expenditures, with prescription medications remaining popular among consumers. Although increasing pharmaceutical prices have bolstered revenue, many provincial drug programs restricted prescription prices to cut healthcare costs, requiring generic drugs to be marked down by a percentage of the patented drug equivalent, which limits revenue growth and prevents larger profit gains. Pharmacies have endured some losses as high inflation discourages discretionary spending, particularly in the beauty and personal care segment. Still, the essential nature of the industry and the consistent need for health products have supported revenue gains. These trends are set to cause revenue to grow at an estimated CAGR of 0.5% to $88.6 billion through the end of 2025, including a 1.9% gain that year alone. As more and more Canadians continue to rely on prescription drugs, foot traffic at pharmacies and drug stores will remain high. British Columbia's reference-based pricing model, which includes generic substitution reimbursement rates within particular product categories, has constrained pharmacies' ability to markup prescription prices for individuals with public health insurance. Pharmacies have also contended with the loss of many brand-name drug patents, markets flooded with low-cost alternatives and significant supply chain disruptions impacting product availability, slowing revenue gains. Despite more prescriptions entering the generic space, new brand-name drugs have been pushing prescription spending upward. Many pharmacies have also begun to offer primary care services, allowing the industry to support Canada’s health system and drive more traffic to stores. These programs, which vary across provinces and have yet to be implemented nationally, create growth opportunities for drug stores. Revenue growth will continue amid growing healthcare spending and an expanding Canadian population. As research and development expenditures continue to rise, more pharmaceuticals will likely come through manufacturers’ drug pipelines, benefitting pharmacies and drug stores. Similarly, improving macroeconomic conditions, including weaker inflation and rising disposable income, and improving supply chain conditions will support growth moving forward. Similarly, pharmacies offering more preventative care are set to contribute to revenue gains. Medications are nondiscretionary, so consumers will continue to buy these products despite price fluctuations. Revenue will grow at an estimated CAGR of 1.9% to $97.4 billion through the end of 2030.

Forecast: Pharmaceutical and Medicine Manufacturing Expenses in Canada 2024 - 2028 Discover more data with ReportLinker!

Forecast: Business Enterprise Expenditure on R&D Performed in the Pharmaceutical Industry in Canada 2024 - 2028 Discover more data with ReportLinker!

In 2024, the private sector expenditures on prescribed drugs in Canada accounted for an estimated 50.5 percent of total drug spending, which was more than in previous years. This statistic displays the percent distribution of total drug expenditures in Canada by drug type and source of finance in 2012 and 2024.

Table S1. Company spending on R&D and promotion – 2013. (XLSX 10 kb)

Table S4. Company spending on R&D and promotion – 2016. (XLSX 10 kb)

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Canada Pharmaceutical Market Size 2025-2029

The Canada pharmaceutical market size is forecast to increase by USD 11.2 billion, at a CAGR of 5% between 2024 and 2029. The Canadian pharmaceutical market is characterized by significant investment in research and development, driven by advancements in biotechnology.

Major Market Trends & Insights

Based on the Distribution Channel, the retail pharmacies segment led the market and was valued at USD 21.02 billion of the global revenue in 2022.
Based on the Type, the prescription segment accounted for the largest market revenue share in 2022.

Market Size & Forecast

2024 Market Size: USD 40.58 Billion
Future Opportunities: USD 11.20 Billion
CAGR (2023-2028): 5%

In the dynamic Canadian pharmaceutical market, various elements shape industry trends and strategies. Drug safety monitoring and pharmaceutical regulations ensure patient safety, while drug utilization review optimizes prescription drug coverage. Pharmaceutical investment and innovation pipeline fuel progress, with pharmaceutical research grants and licensing driving new discoveries. Compliance with regulations and pharmaceutical sustainability are crucial, as are drug pricing strategies and prescription drug coverage. Pharmaceutical outsourcing, including contract manufacturing and pharmaceutical logistics, streamline operations. Pharmaceutical biotechnology and pharmaceutical industry associations foster collaboration and innovation.

What will be the size of the Canada Pharmaceutical Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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Pharmaceutical compliance, pharmaceutical data analytics, and pharmaceutical workforce development are key areas of focus. Anti-counterfeiting measures and pharmaceutical regulations safeguard consumer trust. Pharmaceutical industry trends encompass pharmaceutical patents, pharmaceutical rebates, and pharmaceutical regulations, all shaping the competitive landscape. Pharmaceutical regulations and pharmaceutical data analytics drive transparency and efficiency. Pharmaceutical compliance and pharmaceutical sustainability are integral to long-term success. The hospital pharmacies segment is the second largest segment of the distribution channel and was valued at USD 7.19 billion in 2022.

This investment fuels innovation, leading to the introduction of new treatments and therapies. However, market dynamics are influenced by price controls and reimbursement policies. These policies aim to ensure affordable healthcare for Canadians but can pose challenges for pharmaceutical companies. Navigating these policies effectively requires a deep understanding of the regulatory landscape and the ability to demonstrate the value of new treatments.

Companies that can successfully address these challenges and bring innovative, cost-effective solutions to market will be well-positioned for success. The pharmaceutical industry in Canada presents opportunities for growth, particularly in areas of unmet medical needs and emerging technologies. Strategic partnerships, regulatory collaboration, and a focus on patient-centric care can help companies capitalize on these opportunities and navigate the market's complexities.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Distribution Channel

  Retail pharmacies
  Hospital pharmacies
  Online pharmacies
  Clinics
  Direct-to-consumer


Type

  Prescription
  Non-prescription


Therapy Area

  Oncology
  Cardiovascular
  Neurology
  Endocrinology
  Others


Age Group

  Adults
  Children and adolescents
  Geriatric


Product Type

  Oral drugs
  Injectables
  Topical drugs
  Inhalation drugs
  Others


Geography

  North America

    Canada

By Distribution Channel Insights

The retail pharmacies segment is estimated to witness significant growth during the forecast period.The segment was valued at USD 21.02 billion in 2022. It continued to the largest segment at a CAGR of 3.90%.

In the Canadian pharmaceutical market, retail pharmacies play a pivotal role in the distribution network, delivering medications and healthcare products directly to consumers. These retail outlets offer a range of services, including over-the-counter drugs, prescription medications, and ancillary healthcare items. Retail pharmacies cater to diverse consumer needs, ensuring accessibility and convenience in urban and rural areas. Moving forward, from 2025 to 2029, retail pharmacies will prioritize integrating advanced healthcare technology to enhance patient care and streamline operations. Digital tools will

The Canadian pharmaceutical market, valued at $34.62 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.6% from 2025 to 2033. This expansion is driven by several key factors. An aging population necessitates increased demand for prescription medications to manage chronic conditions prevalent among older demographics, such as cardiovascular disease, diabetes, and musculoskeletal issues. Furthermore, rising healthcare expenditure and improving access to advanced therapies contribute to market growth. The market is segmented by distribution channel (pharmacy, clinic), drug type (prescription, non-prescription), and therapeutic area (musculoskeletal, nervous, respiratory systems, and others). Prescription drugs constitute a significant portion of the market, reflecting the prevalence of chronic diseases. The Musculoskeletal system therapy area likely holds a substantial market share given the aging population and associated conditions like arthritis. Competition among major pharmaceutical players like Abbott Laboratories, Pfizer Inc., and Johnson & Johnson, amongst others, is intense, characterized by strategic pricing, new drug launches, and mergers and acquisitions. These companies leverage their strong brand recognition and extensive distribution networks to maintain a competitive edge. However, stringent regulatory approvals, patent expirations, and the rising cost of drug development pose significant challenges to market players. The forecast period (2025-2033) anticipates continued growth, albeit at a potentially moderated rate in later years. Factors influencing this could include generic drug competition impacting pricing for established medications, the evolving healthcare landscape with a greater emphasis on cost-effectiveness, and potential shifts in government healthcare policies. Growth opportunities lie in innovative drug development focusing on unmet medical needs, particularly within specialized therapy areas like oncology and biotechnology. The market's success hinges on adapting to evolving patient needs, navigating regulatory hurdles, and managing the complexities of a competitive landscape. Companies will likely focus on strategic partnerships, R&D investments, and tailored marketing strategies targeting specific patient populations to sustain growth.

Annual Prescription Drug Expenditures Group by Anatomical Therapeutic Chemical (ATC).

In 2024, drug expenditures in Ontario averaged at some ***** Canadian dollars per person. Per capita health expenditures tend to differ among provinces, partially due to differences in age distribution. This statistic shows a forecast of the drug expenditure per capita in each Canadian province in 2024.

Canada CA: Pharmaceutical Industry: Total Imports data was reported at 19.392 USD bn in 2021. This records an increase from the previous number of 15.201 USD bn for 2020. Canada CA: Pharmaceutical Industry: Total Imports data is updated yearly, averaging 7.354 USD bn from Dec 1988 (Median) to 2021, with 34 observations. The data reached an all-time high of 19.392 USD bn in 2021 and a record low of 668.087 USD mn in 1988. Canada CA: Pharmaceutical Industry: Total Imports data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.MSTI: Trade Statistics: OECD Member: Annual.

In Canada, new sampling method (weighted sample survey supplemented by administrative tax data) and conceptual changes in the business R&D survey caused a break in series in 2014. From 2012 the coefficients used for estimating R&D expenditure in the Higher Education sector have been revised, as well as the distribution of HERD between funds directly from government for R&D, GUF, and from institutions’ own funds. From 2010, the federal government R&D expenditures are better measured. From 1988, the estimated values for R&D in hospitals not covered by university reports are included in the R&D expenditure of the higher education sector (not previously included).

Beginning 2017, NABS 2007 was used and correlated with the new Canadian Research and Development Classification (CRDC) system of classification at Statistics Canada. With the new methodology, SEO 12 and 13 (General advancement of knowledge) were removed from the survey and departments re-allocated the funds among the other SEOs. From 1989, non-federal sources are no longer excluded from GUF in GBARD.

While smaller in scale than their US counterparts, brand name pharmaceutical manufacturers in Canada play a pivotal role in the Canadian healthcare system. Canadians rely heavily on prescription medications. The country ranks among the top per capita drug expenditure globally, positioning manufacturers to benefit from strong consumer demand and public health initiatives. Driving factors behind rising spending on brand name drugs in Canada recently include an aging demographic, broader health coverage through provincial plans, approvals for new therapies and advances in specialized treatments for conditions like rare genetic disorders and cancer. Despite this, branded manufacturers have struggled against biosimilar competition, which provides buyers with more affordable options. In all, Brand name pharmaceutical manufacturers are navigating a rapidly evolving regulatory environment. A critical change potentially impacting the brand name pharma landscape is updates from the Patent Medicine Prices Review Board (PMPRB), which aims to reduce excessive pharmaceutical prices. Alongside other initiatives, these reforms would impact manufacturer pricing strategies significantly, mirroring the global trend of restricting drug price escalation. Despite these potential hurdles, other initiatives stand to strengthen domestic pharmaceutical production, including a new pathway to expedite access to innovative therapies and an adjustment to the Patent Act, which will compensate pharmaceutical companies that face unreasonable delays. While brand name pharma companies will have to adapt to an evolving environment, demographic changes and medical and tech advances will move the industry forward. Rising investments in R&D will bring new, innovative therapies to market; federal and provincial support surrounding treatments for rare conditions and innovation will also support manufacturers. At the same time, an increasing prevalence of chronic illness and a growing number of over 65 adults will support a steep demand for prescription drugs. Consolidation activity will continue as incumbents look for ways to diversify pipelines, access new technologies or reach new markets to offset pressures from patent cliffs and regulatory changes. Revenue will expand, rising at a CAGR of 2.1% to reach an estimated $8.3 billion in 2029.

This table provides statistics on the Ten Highest Prescription Drug Expenditures by Net Payment and Coverage Category for Non-Group Supplementary Plans. Non-Group supplementary health plans provide coverage for prescribed drugs and selected health services. Supplementary health plans are funded by Alberta Health and administered by Alberta Blue Cross. This table is an Excel version of a table in the "Alberta Health Care Insurance Statistical Supplement" report published annually by Alberta Health.