EU27 chemical business is struggling
Highlights:
- The current situation in the chemical industry is worrying. Chemical companies are facing a very difficult global economic context. Energy costs in Europe remain among the highest in the world, and demand is still disappointing.
- The sector continues to face fierce competition, particularly from China. Foreign trade, which has always been a driving force of the European economy, is not significantly improving.
- The lack of action regarding energy prices remains a core concern of the sector. In addition, the recipes that worked in the past seem to have reached their limits: Europe is suffering from being an open market and from its unmatched level of regulation, to the point that Europe has now entered a critical phase. The European chemical sector is a reflection of those patterns, struggling to export more to the international market and facing a significant wave of imports.
- Uncertainty continues to penalise investment, and forecasts for 2025-2026 are poor. The number of closures in the chemical sector is leading to deindustrialisation, to the benefit of countries offering a cost advantage.
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You may view the Chemical Trends Report for Q3 2025 here and access the relevant slides here.