Trends in the Chemical Industry

Global growth in the chemical industry lagged behind the industry as a whole in 2022 and at 2.2%, was significantly weaker than in the previous year (+6.1%). In the E.U., production fell considerably by 5.8% due to the sharp rise in natural gas prices. In Germany, this even dropped by around 12% as a result of shutdowns in the production of gas-intensive basic chemicals. The United Kingdom also saw a strong decrease in chemical production.

By contrast, chemical production in the United States increased by 2.3%. However, base effects due to weather-related production losses in 2021 played a major role here (2021: +1.7%). In South America, production grew by 2.6%, slightly slower than in the previous year (+3.6%).

Chemical production in Asia expanded by 4.2% overall. However, this varied widely by country. In China, the world’s largest chemical market, production grew by a very volatile 6.6% overall. Production also increased significantly in India (+4.6%). By contrast, in Japan, South Korea and Taiwan, production fell by 3.0%, 7.4% and 12.9%, respectively.

Chemical production in the Middle East increased by 4.0%, slower than in 2021. Growth was stronger in Saudi Arabia and the United Arab Emirates but declined significantly in Iran and especially in Turkey.