Chemical Sector Faces Gloomy 2025 Amid Global Slowdown
Global chemical companies predict continued stress in the sector for 2025, with growth expected to slow amid high tariffs and declining commodity prices. Despite these challenges, some companies maintain strong market positions due to diverse portfolios and reduced reliance on agrochemicals.
- Country:
- India
Several global chemical firms are bracing for another challenging year as recent annual reports project continued stress across the sector in 2025. A report by PL Capital forecasts the chemical industry's growth, excluding pharmaceuticals, to decelerate to 3% in 2025, down from 3.9% projected for 2024.
China, which contributes a significant 86% of global chemical production, is expected to see a growth decline to 4.2% in 2025 from 6.8% in 2024, yet it will likely outpace other regions. Major companies express concerns in their outlook commentaries about high tariffs disrupting prices and supply chains, adding to the industry's headwinds.
The crop protection segment faces another tough year due to weak demand and heightened competition, exacerbated by a surge in generic product supplies affecting pricing. The commodity price drops have further strained the sector; after significant price hikes in 2022 and 2023 for key crops such as corn and soybean, prices fell sharply in 2024, leading to reduced farm incomes and lower agrochemical demand.
(With inputs from agencies.)
Google News