European Chemical Industry: Losing ground in a shifting global market
The European chemical industry remains a cornerstone of Europe’s economy, but 2025 marks a year of both challenge and transformation. With a turnover of €635 billion and 1.2 million people employed, the sector continues to supply essential materials to industries ranging from automotive to healthcare, underpinning daily life across the continent.
However, the global landscape is shifting rapidly. Europe’s share of the world chemical market has declined to 13%, while China now accounts for 46% of global sales and has become the EU’s leading source of chemical imports.
Energy remains a critical concern. European gas prices are still three times higher than those in the US, putting pressure on competitiveness. At the same time, the sector faces weak demand, growing import pressure, and persistently low capacity utilisation – 9.5% below pre-crisis levels (2014-2019). While Europe remains a net exporter – thanks especially to high-value specialty chemicals – its trade surplus has not kept pace with global growth, and the region has lost ground compared to other major exporters.
With around 31,000 companies—97% of them SMEs—the sector is deeply embedded in local economies, supporting jobs and innovation throughout Europe. As the industry adapts to global shifts and rising competition, it continues to play an integral role to Europe’s industrial strength and future growth, driving innovation and sustainability across the continent. However, securing this role in the future without increasing Europe’s level of supply dependencies will require bold action from European policy makers.