Trends in the Chemical Industry

Despite significant regional differences, growth in the global chemical industry in 2024 (+3.9%) considerably outpaced overall industrial production. While the chemical industry in China grew by around 6.8%^a on the basis of official figures, it increased by 1.1% in the rest of the world. In 2024, China accounted for 86% of global chemical growth.

Starting from the very low prior-year level, chemical production in the EU rose considerably in the first half of 2024. This was partly due to supply bottlenecks on international trade routes through the Red Sea and production constraints at non-European producers. Over the course of the year, however, weak European demand resulted in a considerable decline in production. For the year as a whole, production in the EU only grew by around 1.6%. Chemical production in Germany followed a similar trend. However, the annual growth rate was higher due to the lower starting base at the end of 2023 (2024: +3.1%, 2023: –12.1%).

In the United Kingdom, chemical production decreased by 1.7% (2023: –12.7%).

In the United States, the chemical industry stagnated for the second consecutive year amid overall weak industrial demand (2024: 0.0%, 2023: –0.2%).

Chemical production in Asia rose by 5.6%, slightly more than in the previous year (+4.5%). China, the world’s largest chemical market, grew by 6.8%.^a India increased production by 1.8% after stagnating in the previous year. Nearly all other countries in the region also reported growth in the chemical industry. Only Japan experienced a decline of 2.9%.

Chemical production in the Middle East also increased by a total of 2.5%. In Iran and in Saudi Arabia, the region’s leading producers, chemical production increased slightly more than the regional average. In contrast, Israel saw a decline in production.