The EU27 chemical industry is facing a tough reality
The competitiveness of the sector in Europe remains far below pre-crisis levels (2014-2019 average) driven by a combination of weak demand, global trade pressure and uncompetitive energy prices. This is particularly an issue for commodity products and petrochemicals, where China has a competitive edge through large-scale production capacity and low production costs.
Compared to the United States, European gas prices were 2.5 times higher throughout 2025, leaving European producers at a sustained competitive disadvantage. Electricity prices also remain considerably higher than in the US, underscoring energy costs as a core global competitiveness challenge for the European chemical industry.
The EU27 chemicals capacity utilisation remains at historical lows, well below the EU’s long-term average and, importantly, well below the US average. The weak demand and declining business confidence continue to challenge the EU27 chemical industry.
The business trade environment in which European chemical companies are operating is exposed to high risks due to the unprecedented, global trade disruptions caused by US tariffs. EU27 chemical export values to the USA have declined since March 2025. In 2025, the EU27 chemicals trade surplus was €7.3 bn below the 2024 level. The sector still has a trade surplus in value thanks to specialty and consumer chemicals but faces a deficit in volume terms.