Are Your Essential Oils Considered NHPs or Cosmetics?

Unsure how your essential oils fit into Health Canada’s rules? The difference between a cosmetic and a Natural Health Product (NHP) isn’t always obvious, and that can lead to confusion about licensing and compliance. This is especially true when the same oil can fall into different categories based solely on its marketing. 

Understanding your product’s classification is key to avoiding regulatory issues and delays. Depending on how you market essential oils in Canada, your product could require a product license, a site license, or just a simple cosmetic notification. 

Keep reading to find out how your specific product may be classified, and what steps you need to take to stay compliant. 

How essential oils are regulated in Canada 

In Canada, essential oils can fall under three main categories: 

1. Cosmetics: If marketed for scent or beauty, with no health claims. 
2. Natural Health Products (NHPs): If marketed for therapeutic use (e.g. headache relief, relaxation). 
3. Consumer products: If used in diffusers for ambient fragrance only, without any health-related purpose. 

The deciding factor is the intended use and marketing claim. For instance, if your oil is promoted to ease anxiety or relieve congestion, it’s considered an NHP and requires approval from Health Canada’s Natural and Non-prescription Health Products Directorate (NNHPD). 

On the other hand, if your oil is marketed purely for its scent or as a skin fragrance, it falls under Canada’s Cosmetic Regulations, and only requires a cosmetic notification. 

What license do you need to sell essential oils in Canada? 

The license or registration you need depends on the category your product falls into: 

• Cosmetic: No product license is needed. However, you must submit a Cosmetic Notification Form within 10 days of selling the product in Canada. A compliant label is also required. 
• NHP: You must obtain a Natural Product Number (NPN) before you can sell. This involves providing evidence of safety, efficacy, and proper labeling. Your site also needs to hold an NHP Site License. 
• Consumer product: No license is required, but you must still comply with the Canada Consumer Product Safety Act. 

The role of health claims in classification 

The line between a cosmetic and an NHP is often blurred. Two oils with the exact same ingredients could be classified differently based on the health claims made on the label. 

For example, a product marketed as a “soothing lavender scent for your evening routine” would generally fall under the cosmetic category. In contrast, a label that says “helps promote relaxation and reduce stress” would be considered a health claim, and therefore require an NPN and full compliance with NHP regulations. 

To support businesses in making appropriate claims, Health Canada provides an Aromatherapy Monograph that outlines common therapeutic uses of essential oils. This document helps streamline the licensing process by identifying pre-approved claims — but if your intended use isn’t listed, there’s still the option to submit supporting evidence for consideration. 

What about diffuser oils? 

If you’re selling oils for use in diffusers, how you describe their purpose plays a critical role in determining their regulatory classification. For example, if the product is simply promoted to “add a pleasant scent to your home,” Health Canada considers it a consumer product. In this case, no product license is required, though you must still follow general safety requirements. 

On the other hand, if the oil is described as “used in aromatherapy to improve sleep” or makes any similar health benefit claim, then it crosses into Natural Health Product territory. This means you’ll need an NPN before you can legally market or sell the product in Canada. Understanding the difference upfront can save you from costly compliance issues later.