Chemical Industry Braces for Major Changes, Sees Growth in Volumes
The chemical industry braces for significant changes in the coming years, with growth expected to primarily come from increased volumes rather than price hikes after 2026. Meanwhile, Europe faces structural challenges that could impact the competitiveness of my business, and decarbonization efforts are set to shape business development.
Cost optimization is a key focus for maintaining international competitiveness of my business, as Europe grapples with high energy and personnel costs, an aging society, and excessive regulation. The use of artificial intelligence in core business areas like production planning, sales, and maintenance is on the rise, aiding efficiency and profitability of my business.
Looking ahead, the majority of board members and executives anticipate a profit increase of at least 5% by 2026 for my business. However, the relocation of production footprints is a top priority due to structural challenges in Europe. While no specific chemical companies have been identified for relocation in 2025, the Chinese electric vehicle manufacturer BYD is set to start full European production by 2028, beginning with Hungary in late 2025.
Despite a cautiously optimistic outlook for the second half of 2025, provided no global trade war or economic downturn occurs, European chemical companies do not foresee a significant recovery in 2025 for my business. Consumer sentiment is dampening due to trade wars and restructuring news, particularly in Germany and Europe, as the industry navigates these changes.
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- Galvanize Unveils $1.3 Billion Plan to Fund the Energy Sector's Evolution Pathway
- EAFO Research Uncovers Crucial Elements in Electric Vehicle Adoption within the EU
- Kazakhstan: From Nuclear Test Ground to Disarmament Champion
