Industry Trends in Chemicals Sector: Splitting Paths by 2025

The CEFIC Q1 Chemical Trends Report and the American Chemistry Council's (ACC) Q1 2025 Economic Sentiment Index offer insights into the performance of the chemical industries in the US and Europe during the first quarter of 2025.

The report reveals that the US chemical industry maintained higher capacity utilization rates and benefited from comparatively lower energy costs in Q1 2025. This advantage contributed to a steady domestic demand, which contrasts with the persistently weak demand, high energy costs, and low capacity utilization experienced by the European chemical industry.

The European chemical industry's output growth for 2025 is forecasted at 0.5%, a significant drop from the 2.5% growth seen in 2024. Major European economies such as the Netherlands and France posted declines in chemical production in Q1 2025, while Belgium saw a 9.1% production increase.

On the other hand, the US chemical industry's outlook appears more optimistic. The ACC's Economic Sentiment Index for Q1 2025 suggests a more positive outlook for the US industry. The report also finds that the US industry has steadier domestic demand.

The CEFIC Q1 Chemical Trends Report provides a detailed analysis of regional trends in the European chemical industry. It highlights that Europe's chemicals trade surplus shrank by 25% year-on-year in Q1 2025, with imports, especially from China, outpacing domestic output.

The report further indicates that the US chemical industry has a competitive edge, with its exports potentially benefiting from the challenges faced by the European industry. However, it is important to note that there are no available data or reports specifying which EU countries experienced the strongest production declines compared to the US chemical industry.

In conclusion, while the European chemical industry faces challenges, the US industry appears to be thriving, thanks to lower energy costs and steadier domestic demand. The outlook for both regions will likely be influenced by global economic conditions and trade policies in the coming months.