Doing Business in Canada: Market Entry, GTM Strategy & Growth Potential

The population of Canada is 40,467,728, and is growing at the rate of 0.79%. The GDP per capita, which represents the potential spending power of the people, is $70,006, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

83.05% of Canada’s population lives in urban areas. 57.83% of the population is of working age (15-59). 94.35% of the population has internet access and 96.1% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks Canada #21 overall for market attractiveness,  rising 2 places over the past year.

How we can help you grow in Canada:

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How Digitally Mature is the Market in Canada

The digital search demand score for Canada is 26.95.

While Canadian consumers are well connected, this comparatively low score reflects that Canadian consumers do not heavily rely on search for product discovery. Brands looking to enter Canada should consider a broader channel mix, as awareness is largely driven by cross-border advertising from the US, social platforms, and marketplaces. For businesses already active in North America, Canada is a low lift additional market.

Go-To-Market Strategy Considerations for Canada

The purchasing power score for Canada is 64.57, and the country scores 91.39 for digital readiness.

The combination of high income levels, a highly urbanised population, and near-universal connectivity make Canada a strong candidate for digital-first go-to-market approaches. Canadians are concentrated in a small number of large metropolitan areas, notably around Toronto, Montreal and Vancouver, which allows brands to reach a significant share of the market through geographically targeted campaigns.

Population growth has historically been driven largely by immigration, so brands should also consider the multicultural makeup of the major cities when planning creative and language targeting.

Financial & payment infrastructure

In terms of financial infrastructure, Canada scores 81.25.

This score reflects a mature and stable financial ecosystem, with a small number of large national banks and well-established payment infrastructure. Canada is therefore well suited to support smooth transaction flows for international business.

Debit and credit cards, including contactless payments, are the primary method of everyday spending. Visa and Mastercard are almost universally accepted, with Amex accepted by many larger retailers. Interac, the domestic debit network, and Interac e-Transfer are widely used, so online retailers should consider supporting them alongside cards. Digital wallets such as Apple Pay and Google Pay are common, and buy-now-pay-later services are growing in popularity, particularly among younger shoppers.

Regulatory & business setup friction

From a business expansion point of view, Canada scores 56.96 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

This score places Canada in a middle-ranking position for regulatory difficulty, comparable to Norway (57.26). Regulation is split between federal and provincial or territorial governments, so requirements can vary depending on where a business incorporates and operates. Businesses can incorporate federally or provincially, and must then register for sales tax, with GST/HST applying nationally and additional provincial sales taxes in some provinces.

Marketers should pay particular attention to Canada’s Anti-Spam Legislation (CASL), which requires consent for commercial electronic messages, and to federal and provincial privacy laws, including Quebec’s Law 25, which sets stricter requirements for consent and data handling. Foreign investment in certain sectors, or the acquisition of Canadian businesses above set thresholds, may also be subject to review under the Investment Canada Act.

The score of 34.92 indicates the costs and friction associated with setting up a business presence in Canada.

The set-up cost and friction are expected to be moderate to high. Businesses should budget realistically for the time and costs necessary to become operational.

Much of the friction comes from operating across multiple layers of government, with separate federal and provincial tax registrations and employment standards that vary by province. Labour and commercial property costs are also high in the major cities, and opening a Canadian business bank account can take longer for foreign-owned companies without a local presence. Businesses selling in Quebec must also comply with French-language requirements for commercial activity, including product labelling and customer-facing materials.

Canada market attractiveness change

Compared to last year, the overall International Growth Index score for Canada has changed 1.79 points, moving the country 2 places higher from 2025, to rank #21 in 2026.

This is a modest improvement for Canada, and the small size of the change points to stability rather than a step change. Canada’s strong digital readiness and financial infrastructure continue to hold up well against competitor markets, while other countries have seen larger movements up and down the index.

Canada is an attractive market for brands already established in the US, and for businesses in technology, clean energy, natural resources and financial services.

Most Popular Social Media Platforms in Canada:

1. YouTube
2. Facebook
3. WhatsApp
4. Instagram
5. TikTok
6. LinkedIn
7. X
8. Reddit
9. Pinterest
10. Snapchat

The official national languages are English and French. English is spoken by 87% of the population, though French is mandatory for commercial activity in Quebec. Marketing teams should consider localising website content in English as well as French for search, and social media and advertising content, especially if they’re targeting Montreal or all of Quebec.

What Are the Risks of Expanding into Canada

While new market expansion can be exciting, it is important to also consider the risks when entering a market like Canada.

Canada’s economy is closely tied to the United States, so brands should be aware of their exposure to US trade policy, tariffs and cross-border supply chain disruption. Ongoing trade uncertainty can affect both consumer confidence and import costs.

Bilingualism is another key consideration. French is mandatory for commercial activity in Quebec, and many French-speaking consumers expect French-language content. Brands should budget for high-quality Canadian French localisation, which differs from European French, rather than reusing content produced for France.

Finally, low search demand and strong competition from US-based brands and marketplaces such as Amazon mean it can be costly to stand out. Canada’s large geography can also lead to higher shipping and fulfilment costs outside the major urban corridors.

How Does Canada Compare to Other Top Markets?