As a federal bilingual country (English and French) with a population of 38 million[1], a strong and diversified economy, and a median per-capita after-tax income of CAD 66,800 (2020)[2], Canada constitutes an attractive destination market for international cosmetic products.
The value of the Canadian cosmetics market has been predicted to reach USD 15.79 billion by 2021, marking a 4.3 billion USD increase from 2015[3]. In 2021, the Canadian Personal Care and Beauty industry generated 9.7 CAD$ billion in revenue, and a CAGR growth of 3.13% is expected between 2021 and 2025[4].
In 2020-21, Canada ranked 9th globally for beauty and skincare imports by value, (overall: 1.5 billion USD, 11.9% growth between 2020 and 2021)[5]. The implementation of trade treaties and agreements with the US and Mexico (USMCA), the EU (CETA), the UK, China, Japan, South Korea, Australia, Singapore, and New Zealand, further lowered tariff barriers and streamlined the procedure of importing cosmetics into Canada.
Canadian law defines cosmetics as “any substance or mixture of substances manufactured, sold or represented for use in cleansing, improving or altering the complexion, skin, hair or teeth, and includes deodorants and perfumes” (Canada Food and Drug Act, 1985)[6].
The production, import, sale, and distribution of cosmetics are mainly governed by the “Food and Drugs Act” (ratified in 1920, updated in 1985, and last amended in 2021, outlining the safety and regulatory compliance framework for food, drugs, and cosmetics, defining inspection powers and outlining monetary and criminal penalties for non-compliance and violations), and by the “Consumer Packaging and Labelling Act”,[7] (ratified in 1985, last amended in 2021, ensuring that the final consumer is not misled by information found on labelling and packaging of B2C products). Both the two acts are complemented by ancillary regulations, known respectively as “Cosmetic Regulations” and “Consumer Packaging and Labelling Regulations”[8].
With its global regulatory expertise in the EU and the UK, a multilingual team, and a new office in Vancouver, GCRS Global is your go to one-stop solution for seamlessly accessing the lucrative Canadian market and expanding your sales in North America.
Keywords: #Canada, #FoodandDrugsAct, #ConsumerPackagingandLabellingAct, #GCRS, #HealthCanada, #AdvanceNotification, #RP
Reference:
[1] Statistics Canada – Quarterly Population Estimate April 1st, 2022 https://www150.statcan.gc.ca/n1/en/subjects/population_and_demography/population_estimates
[2] Statistics Canada - Canadian Income Survey, 2020 – Released: 02/03/2022
https://www150.statcan.gc.ca/n1/daily-quotidien/220323/dq220323a-eng.htm
[3] Canadian skincare and cosmetics sales value by product type 2018 – Statista.com
https://www.statista.com/statistics/877695/skincare-and-cosmetics-sales-value-canada-by-product/
[4] Review Moose Blog - https://reviewmoose.ca/blog/beauty-industry-statistics/ - data cited from www.statista.com
[5] World’s Top Exports website - https://www.worldstopexports.com/beauty-cosmetics-and-skincare-imports-by-country/
[6] Canada Food and Drugs Act - https://laws-lois.justice.gc.ca/eng/acts/f-27/
[7] Consumer Packaging and Labelling Act- https://laws.justice.gc.ca/eng/acts/C-38/page-1.html#h-95984
[8] Guide to the Consumer Packaging and Labelling Act and Regulations https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/01248.html