Brazil Chemical Licensing Market - Forecasts from 2024 to 2029

The Brazil chemical licensing market is expected to grow at a CAGR of 4.10% from estimated value of US$458.776 million in 2024 to US$560.742 million in 2029.

Owing to various factors and regulatory changes, Brazil's chemical licensing market has been rapidly expanding. If policies are proposed that reduce prices, improve competitive edge, and enhance regulatory conditions, it is anticipated that Brazil’s chemical sector will see growth. A rise in the growth of the sector is due to various industries where chemicals are important including manufacturing companies in its many forms such as papermaking among others; oil refining companies producing various petroleum products including gasoline which is used mainly in running cars globally.  

For instance, a new chemical law that governs the evaluation, registration, and control of chemical substances is known in Brazil as the Brazil REACH Regulation or PL 6120/19. This law intends to create a national chemical inventory in conformity with international standards like the globally harmonized system. This regulatory framework is expected to make the process of licensing more transparent and simplified.

Brazil Chemical Licensing Market Drivers:

The rising use of licensing in the pharmaceutical industry is anticipated to drive the market.

Licensing in the pharmaceutical sector is becoming more valuable. The difference between an increase in the number of licensing agreements determined annually and the growth of the turnover of the industry as a whole appears to occur less frequently in other areas of technology, perhaps except in innovations related to software.

Moreover, license agreements in the sector must be regulated by ANVISA to approve new drugs’ marketing authorizations, make them register into the database and re-activate approvals for new uses or indications while patent protection mitigates technology transfer preventing free-riding among other things and stimulates innovation towards its commercialization. These regulations comply with international norms like TRIPS (Trade-Related Aspects of Intellectual Property Rights).

High demand from the agriculture industry

Brazil has a major agricultural industry, making it one of the largest and fastest-growing sectors globally, with a huge role for Brazil in the global chemical industry. For instance, key areas for Sumitomo Corporation do Brasil are both of these segments. They offer a broad range of goods and services to take advantage of Brazil's position as a global supplier of chemical and agricultural products. Additionally, they plan to forge solid alliances and make direct investments in the chemical and agricultural sectors of the Brazilian market.

They also plan to offer through direct investment and strategic partnerships in the Brazilian market. Thus, Sumitomo Corporation do Brasil has been investing in the most varied segments of this market, including agrochemicals, cosmetics, pharmaceuticals, pet care, chemicals, and polymers, in addition to its traditional activities in agriculture and chemical trading. Their objective is to set up our supply chain and network in order to introduce new products through partnerships that are targeted at important, expanding consumer markets.

Rising demand for organic chemicals might positively impact the market growth.

A notable growth has been observed in Brazil’s organic chemical industry since farmers and consumers recognize the importance of using safe farming methods. With increased concerns for the environment and health, more people are turning to organic farming due to the high demand for green products. This move towards changing consumer preferences is propelling farmers to adopt organic farming methods leading to increased requests for natural inputs not only by clients but also by manufacturers themselves.

Besides government initiatives for sustainable farming, there have been other significant forces contributing to these changes. In particular, a number of financial incentives have been promoted at various levels, including provincial grants and regional assistance packages from EU funds, to support this kind of production.

High demand from the oil & gas industry is predicted to boost market expansion.

Brazil's chemical licensing market is expected to be driven by the country's oil and gas industry due to declining offshore drilling rig costs, increasing offshore activity, and growing refining sector growth over the forecast period.

For instance, between 2012 and 2022, Brazil increased its production of petroleum and other liquids from 2.7 million barrels per day (b/d) to roughly 3.2 million b/d. In 2018 for the first time, pre-salt fields of Brazil produced more oil than all other fields within the nation summed up together. The record high for pre-salt fields reached 2.8 million b/d in 2020 which represents 70% of all the production in Brazil. In 2023, Brazil was one of the global top 10 oil-producing nations.

Sao Paulo is estimated to hold a high market share during the forecast period.

There is a huge demand for chemical licenses in São Paulo. This is because many important factors and trends affect the local and broader Brazilian chemical industries. São Paulo is an industrial center that is abuzz with one of the most vibrant chemical industries on Earth. As such, this broad spectrum covers chemical production ranging from high-value specialized goods to basic commodities. Furthermore, due to their extensive operations and expansions, companies such as Braskem, which is headquartered in São Paulo, are major players in the region and drive substantial demand for chemical licenses. 

Brazil chemical licensing market has been segmented and analyzed as below:

By Type

• Organic Chemicals
• Inorganic Chemicals

By Application

• Oil & Gas
• Petrochemicals
• Pharmaceuticals
• Others

By State

• Sao Paulo
• Minas Gerais
• Rio De Janeiro
• Others