Global Chemical Industry Faces Gradual Recovery Amid Mixed Outlook for 2025

The global chemical industry is poised for a slow recovery in demand throughout 2025, as per a report from B&K Research. Despite some volume improvements in 2024, the overall performance remained subdued, with companies cautiously optimistic about the upcoming year.

The report indicates mixed outlooks among chemical companies for 2025, with concerns about demand recovery persisting. Growth in 2024 was largely attributed to volume increases rather than broad-based price improvements. A pivotal development was the conclusion of a protracted destocking phase in chemicals and specialty chemicals.

This phase's end enhanced demand and sales visibility, allowing for year-on-year volume growth. However, the agrochemical sector still grapples with inventory challenges. As the industry heads into 2025, gradual recovery is anticipated, with the Indian chemical sector poised for growth unless hindered by pricing pressures and low farm product prices.

(With inputs from agencies.)