A A C C   2 0 0 0   A n n u a l   M e e t i n g

Nutraceuticals and functional foods represent one of the fastest growing markets in the developed world. Depending upon the statistics used, the worldwide market size for these products is estimated to be $20 to $86 billion annually with rapid growth being projected, reaching $500 billion by 2010. Given the current trend towards health care cost reduction and a growing consumer interest in preventive health, it is expected that the industry will continue to exhibit strong growth. In Canada, the industry is very diverse and is estimated to generate between $1.8 B to $2 B per year. Further information regarding the size and characteristics of the functional food, nutraceutical and natural health product (NHP) industry in Canada will be given. In 1999, the National Institute of Nutrition initiated research to investigate Canadian consumers' awareness, opinions and beliefs about functional foods and nutraceuticals. The research design and instruments were based on those used by the U.S. International Food Information Council (IFIC), to facilitate comparisons between findings in Canada and the U.S. Highlights of the findings from this survey will be presented. Regulatory initiatives related to functional foods, nutraceuticals and NHP are currently underway in Canada. In the summer of 1996, the Food Directorate of HPB began deliberations, which resulted in a proposal for more accurate definitions of nutraceuticals and functional foods. The proposed definition of a nutraceutical is a product that has been isolated or purified from foods and generally sold in medicinal forms not usually associated with food. Nutraceuticals have been shown to exhibit a physiological benefit or provide protection against chronic disease. According to Health Canada's proposal, a functional food would be similar in appearance to a conventional food and is consumed as part of the usual diet. These foods would have demonstrated physiological benefits, and/or reduce the risk of chronic disease beyond basic nutritional functions. By fall of 1997 the Food Directorate and the Therapeutic Products Program initiated a joint project resulting in a final policy paper that was released in late 1998. Recommendations were made to permit structure/function and risk reduction claims for foods and to continue to regulate therapeutic claims as drugs. Health Canada currently has three initiatives underway in the area of health claims for foods: 1) to adopt US generic health claims within a Canadian context; 2) to develop scientific standards of evidence and a guidance document for supporting the validity of product-specific claims; and 3) to develop an overall regulatory framework for functional foods. In addition, the Office of Natural Health Products was established in March 1999 to regulate NHPs in Canada. It has been proposed that NHPs would include "substances and combinations of substances, which can be found in nature, they can be in whole food form or in supplement/dosage form and are traditionally used within the context of an holistic model of health." All products sold in dosage form, including nutraceuticals, whether produced domestically or imported, could potentially be covered by this definition. The status of regulatory initiatives for functional foods, nutraceuticals and NHPs in Canada will be described in this presentation. The Saskatchewan Nutraceutical Network (SNN) is the first such fully funded and operational industry association in Canada. The SNN is a non-profit organization whose role is to lead the development, and support the growth of, an economically viable nutraceutical and functional foods industry in Saskatchewan. The membership of the SNN is 102 organizations including 53 companies and/or individual members; 23 trade associations and service organizations; 13 R&D facilities and 13 government organizations. While the majority of these members are based in the province of Saskatchewan, the membership also includes companies from other parts of Canada, the U.S., Europe and Costa Rica.