Business

The Natural Choice: Why Canada’s Wellness Industry Needs A Seat @ The Political Table

April 3, 2025

Business

With election day on the horizon, the stakes have never been higher for Canada’s Natural, Organic, and Wellness (NOW) industry. Representing the 82% of Canadians who use Natural Health Products (NHPs), the Canadian Health Food Association (CHFA) is calling on party candidates to take a stand—and take action.

We spoke with Aaron Skelton, President & CEO of CHFA, about why this election could be a tipping point for the future of the industry, the regulatory roadblocks threatening Canadian businesses, and how voters can support a healthier, more sustainable economy—one policy at a time. —Noa Nichol

Why is this federal election such a pivotal moment for Canada’s Natural, Organic, and Wellness industry?

Canadian’s interests in health and wellness are growing and the natural, organic and wellness (NOW) industry is primed to support the demand. We have world-class innovation here in Canada with dedicated entrepreneurs looking to support the health and wellbeing of Canadians. We need a government that recognizes and embraces this spirit, eager to work with industry to create policies that support growth, research and entrepreneurship right here in Canada.

You’ve said Canadians are voting to protect Canada—what does that mean specifically for the NOW sector?

Canadian NOW businesses are competing against global players—particularly those in the U.S.—while navigating domestic regulatory challenges that often put them at a disadvantage. With trade policies in flux and consumer demand for Canadian-made products on the rise, this election is a chance to level the playing field. We need a government that prioritizes competitiveness and innovation, ensuring that Canadian brands can scale, create jobs, and continue providing high-quality, better-for-you products to consumers nationwide.

What are the key regulatory challenges facing Canadian natural health businesses right now, and how are they impacting local entrepreneurs?

82% of Canadians that rely on natural health products, like vitamins, minerals, toothpaste, sunscreen and deodorant as part of their proactive health and wellbeing. We play a big role in Canadian’s lives. But there is a pending program that looks to charge NHP companies for regulatory activities – this the biggest threat to the industry right now. If we can’t change the red tape hitting the NHP industry, many entrepreneurs in Canada will be forced out of business or be forced to reduce their product offerings– this means limited choices, higher prices, and reduced accessibility of Canadian-made NHPs. It is imperative we work collaboratively with policymakers to develop a regulatory environment that supports both businesses and prioritizes the health and wellbeing of Canadians.

The CHFA is urging candidates to support small- and medium-sized businesses in this space. What concrete policy commitments would you like to see from party leaders?

Canada is the only country in the world that mandates pre-market approval for all natural health products—a costly and overly complex system that stifles innovation and limits consumer access. We are urging party leaders to commit to modernizing this framework and establish a regulatory system that would maintain the highest safety standards while fostering innovation, streamlining approvals, and ensuring affordability. We are advocating to for a framework that strengthens Canada’s position as a global leader in natural health products while supporting the small and medium-sized businesses that drive this industry forward.

Can you break down the cost recovery proposal for NHPs and why it’s being called discriminatory by your association?

The regulatory fees for natural health products that I mentioned previously, are set to come into play this December unless we can work with government to stop it. These fees are designed to recover bureaucratic costs for regulatory activities, however the costs the NHPs industry faces are so egregiously high they threaten to financially strangle many small businesses. For example, a small business that carries a few dozen products could exceed fees of $500,000 to stay compliant.

This is discriminatory for a few reasons. First, the government didn’t study how these fees would impact different communities, including people who rely on these products the most. Some types of products, like Traditional Chinese Medicines, will be hit even harder by these rules. Even practitioners have been left out of discussions, at risk of losing their tools to treat patients.

Making the problem even worse is these fees only impact Canadian regulated products. If a product is regulated internationally and shipped into the country it doesn’t face the same burden. This makes it incredibly unfair for Canadian products to stay competitive and for Canadians to choose and support local.

How does the regulatory landscape in Canada compare to that of the United States, and how is this disparity affecting competitiveness?

In the US, NHPs (known south of the border as dietary supplements), are considered a food– because of this categorization they do not go through go through what is known as a pre-market approval process. Basically, a check that happens before a product can be sold to the public. In Canada however, we do have this process. Health Canada reviews all NHPs before they are allowed to be sold in Canada.

For Canadian companies, this check was once considered world-leading, but now it has become time consuming and challenging for brands to navigate due to regulatory and legislative changes that have led to unnecessary red tape. This means while US brands can quickly innovate, stay ahead of changing consumer trends, and ship directly to Canadians who order products online, Canadian companies need to wait for lengthy and costly approval processes.

Over 80% of Canadians use natural health products—how is CHFA helping to ensure that consumer voices are heard during this election cycle?

CHFA is empowering Canadians to speak up and protect their access to natural health products. Through our Save Our Supplements campaign we’re giving our members the tools to engage with candidates, ask tough questions, and push for fair policies. We’re also meeting directly with policymakers to ensure they understand the real impact of overregulation on businesses and consumers. Your voice matters, and together, we can make a difference.

What would be the long-term consequences—for both businesses and consumers—if current policies continue to pressure the industry?

If the current regulatory pressures continue, Canadian consumers will ultimately pay the price. Many local businesses will struggle to compete, leading to fewer natural health products on store shelves and significantly higher prices for the ones that remain. Meanwhile, American brands—operating under less restrictive regulations—will have an unfair advantage, limiting the growth of homegrown Canadian innovations.

How can Canadian voters support the industry beyond the ballot box—whether it’s through advocacy, education, or everyday purchasing habits?

Canadian consumers play a vital role in shaping the future of the (NOW) industry through the choices they make every day. We encourage Canadians to buy Canadian-made products and shop at local retailers, use their voices to advocate for fair policies by signing petitions, engaging with policymakers, and getting out to vote for leaders who support homegrown innovation, small business growth, research and entrepreneurship.

What is CHFA’s vision for the future of the NOW industry in Canada, and what gives you hope that meaningful change is on the horizon?

On election day, there is a natural choice. Canada needs fair regulations and policies that foster innovation, accessibility, and growth in the NOW industry—because when this industry thrives, Canadians benefit.

The demand for NOW products is stronger than ever, and we are committed to ensuring that policymakers recognize and support this momentum. What gives us hope is the incredible entrepreneurs and innovators driving this industry forward. Their passion, creativity, and dedication inspire us every day. CHFA is fighting to ensure they have the support they need to succeed, so Canada can remain a global leader in the NOW industry.

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