Trends in the Chemical Industry

Growth in the global chemical industry in 2025 totaled 3.6%, considerably outpacing overall industrial production. However, regional differences were significant: While the chemical industry in China grew by around 7.0%¹ on the basis of official figures, it declined by 0.2% in the rest of the world.

Chemical production in the EU declined significantly overall after an increase due to frontloading effects at the beginning of the year. Production in the EU declined by around 2% on average for the year. In Germany, the decline was even more pronounced at 3.3% due to weak domestic demand.

In the United Kingdom, chemical production decreased by 3.5% (2024: increase by 0.5%).

In the United States, development in chemical production remained significantly positive for some time due to a weak prior-year basis. However, the average annual growth rate was only 1.3% due to overall weak industrial demand.

In Asia, chemical production increased by 5.5%, similar to the previous year (5.6%). China, the world’s largest chemicals market, grew by 7.0% overall and thus slightly faster than domestic industry.¹ In India, production declined by 1.3%. Average production in other countries of the region also declined slightly.

In the Middle East, chemical production increased by only around 1% overall. Growth of almost 5% in Saudi Arabia was offset by a decline of around 13% in Israel.

1 Our own estimate of the growth rate, based on official statistics from China for the overall market and individual products