Canada Chemical Licensing Market - Forecasts from 2024 to 2029

Canada Chemical Licensing Market - Forecasts from 2024 to 2029

Canada's chemical licensing market will reach US$216.507 million in 2029 at a CAGR of 1.72% from US$198.845 million in 2024.

The process of chemical licensing is the approval of the use of a company's unique chemical formula, manufacturing process, or technology by individuals or organizations. It also includes providing producers with licensed technologies for oil and gas-related activities. In Canada, the Canadian National Authority is the one who has the authority to issue, modify, renew, suspend, or revoke licenses for Schedule 1 chemicals in conformity with the Chemical Weapons Convention Implementation Act. For the license, a person has to write a letter that contains his/her name, nationality, and the address of the last five years. According to Canada's regulation for chemical substances, CEPA 1999, all new chemical substances that are imported or produced in Canada since 1994 have to be considered according to the particular criteria of the law.

The chemical licensing market in Canada is about to witness significant growth because of various factors. The growing manufacturing industry and the increasing number of people are the reason for the demand for a wide range of chemicals. To fulfill this demand, companies are choosing to license used technologies rather than investing money and time in the development of their own. The strict safety and production regulations also act as a further incentive for licensing, which, in turn, ensures compliance and stops delays in the introduction of new products.

For instance, according to an article published by the Government of Canada in 2023, the chemical manufacturing sector in Ontario generated $8. 5 billion in 2022 and is worth 10 percent of the GDP. Ontario contributes to the country's total chemical manufacturing GDP by 40%.

CANADA CHEMICAL LICENSING MARKET DRIVERS:

Growing demand for chemicals is anticipated to drive the Canadian licensing market growth.

The Canadian chemical industry is on the rise because of two main reasons. The manufacturing sector is flourishing, and the population is upsurging, thus increasing the need for a larger variety of chemicals. To satisfy this demand, Canadian companies are going for technology licensing. This way, they can use the existing production methods from the proven technologies, thus shortening the time and resources for in-house development. Through the licensing of these solutions, Canadian manufacturers can introduce new chemical products to the market quickly and still be competitive in the ever-changing international marketplace.

For instance, according to Statistics Canada published an article in March 2024, the sales of chemical products grew by 3.5% in December to $5.6 billion because seven out of six sectors had significant growth, with the highest increase seen in pesticide, fertilizer, and other agricultural chemical manufacturing (+68.1%).
Stringent regulations act by the Canadian government are predicted to propel the Canadian licensing market growth.

The strict regulatory system in Canada, which controls chemical production and safety, is the main reason why the chemical licensing market is growing in the country. These strict regulations ensure that all chemicals manufactured and sold in the country meet the highest safety requirements. Businesses that want to produce new chemical products can benefit greatly from licensing pre-approved technologies. By using already tested and approved processes, companies can avoid costly delays and make sure their products meet the safety requirements. This easier method lets the products be launched faster and the non-compliance issues be removed. Thus, it will be useful for both the enterprises and the consumers.

For example, in June 2023, the Canadian Government published an article on its official website stating that the government had undertaken a major project for the collection of information on 850 substances identified as the chemistry management plan priorities. From January 2024, the suppliers, manufacturers, importers, and users were obliged to provide details on such substances.
International market access is expected to boost the Canadian chemical licensing market.

Canadian chemical companies can improve their competitiveness by using licensing agreements. These partnerships allow them to access international markets and advanced technologies, thereby helping them lay a solid foundation for their presence on the world scale. By purchasing innovative technologies from foreign countries, Canadian companies will be able to implement modern solutions into their operations.

Thus, this not only enriches their product portfolio but also enables them to compete effectively with international opponents. Besides, licensing agreements give the chance to go abroad and explore new markets. Cooperation with foreign enterprises can help in the shipment of Canadian chemical products overseas, hence widening their selling area and revenues.

CANADA CHEMICAL LICENSING MARKET RESTRAINTS:

The restricted number of licensors in the region as compared to the United States and Europe might restrain the market.

Unlike the US or Europe, Canada's chemical industry market would have a smaller number of companies willing to license their technologies. This may constrain the choices and, in turn, increase the licensing fee for Canadian companies.
Variations in the price of Chemicals hinder the Canadian chemical licensing market.

Economic downturns on a global scale or the fluctuation in chemical prices can affect the demand for new products thus, the chemical licensing market can be slowed.

Canada’s chemical licensing has been segmented and analyzed as below:

By Type
Inorganic chemicals
Organic chemicals
By Application
Oil and Gas
Petrochemicals
Pharmaceuticals
Others
By Province
Quebec
Ontario
British Columbia
Others