Abstract Abstract The Market and Industry Services Branch of Agriculture and Agri-Food Canada commissioned this study, charging the researchers with the task of defining and describing the strengths, weaknesses and opportunities of the nutraceutical sector and market in Canada, and identifying the perceived needs of Canadian industry for this product category to grow and realize its potential in domestic and foreign markets. Based on the opinions of diverse survey respondents, articles published by non-government sources, and interpretations of a contracted researcher, the findings of this study provide a thumbnail sketch of the state of the nutraceutical industry in Canada today. The respondents regard nutraceuticals as a business opportunity, an economic opportunity (health care-cost savings), and quality-of-life opportunity. Most believe the appropriate role for nutraceuticals is in the prevention of disease, and that this is the focus of most of the research and development in Canada. The study participants felt that industry's inability to have these health benefits officially recognized domestically is delaying market growth and stalling market readiness, despite consumer belief in the health benefits of food. The respondents identified four factors as underlying the lack of official sanction of nutraceuticals: inadequately defined and unstandardized scientific protocol, scientific discord, lack of legislative support, and the cost of and lack of funding for clinical trials. The researchers emphasize the importance of regulatory support of the nutraceutical category by the Canadian government, and the importance of private corporate investment in new product development. Key Words: Canadian nutraceutical industrymarket drivers and obstaclesneed for scientific and regulatory support of categoryquality of life benefitssavings in health-care costs