Chemical Industry Dynamics in Q1 2025: Varied Developments and Trajectories

In the first quarter of 2025, the US chemical industry is enjoying a more stable environment, with comparatively lower energy costs and steadier domestic demand. According to the American Chemistry Council's (ACC) Q1 2025 Economic Sentiment Index, this more favourable condition is providing a solid foundation for US chemical manufacturers.

The ACC's survey, conducted by Morning Consult, offers valuable insights into the US chemical industry's current state. On the other side of the Atlantic, however, the European chemical industry is grappling with persistently weak demand, high energy costs, and capacity utilization rates well below historical averages.

Despite a forecasted output growth of 0.5% for 2025, the European chemical industry's growth rate has decreased significantly from 2.5% in 2024. Major economies such as the Netherlands and France posted declines during Q1 of 2025, while Belgium saw a 9.1% production increase.

However, Europe's woes extend beyond its borders, as imports, particularly from China, outpaced domestic output during Q1 of 2025. This trend has contributed to the shrinking of Europe's chemicals trade surplus by 25% year-on-year.

In contrast, the US chemical industry is showing signs of resilience. Higher capacity utilization rates and a more optimistic outlook for the remainder of 2025 are observed. The specific figures for the US chemical industry's output growth for the rest of the year, however, are not explicitly mentioned.

The CEFIC Q1 Chemical Trends Report provides a deeper analysis of the regional trends in the European chemical industry, offering potential solutions to address the industry's challenges. As the industry navigates these complexities, it remains crucial for policymakers and industry leaders to collaborate and devise strategies for sustained growth and competitiveness.