The European chemical industry continues to face significant challenges despite strong international trade performance in 2025. The latest data point to declining production and growing pressure on the competitiveness of European manufacturers.
Exports Remain High, but the Trend Is Changing
In 2025, EU exports of chemicals and related products to countries outside the Union reached €605 billion, an increase of 7% compared with the previous year. The sector recorded a trade surplus of €257 billion.
However, the picture deteriorated in 2026. According to Cefic, EU chemical production fell by 2% between January and July compared with the same period in 2025, while the value of exports to non-EU markets declined by 4.2%.
These figures highlight the difficulties facing the sector as it attempts to sustain growth amid weak demand and intensifying international competition.
What Are the Main Causes?
European manufacturers face high production costs, uncertainty over raw material supplies, and competition from producers outside Europe. As a result, some companies are reducing output, while pressure on profit margins continues to increase.
For chemical traders and buyers, this may lead to changes in product availability, prices, and delivery terms. At the same time, weaker demand could create opportunities to negotiate more competitive prices for certain products.
What Can We Expect?
In the coming months, the performance of the European chemical sector will depend on a recovery in demand, raw material price movements, and manufacturers’ ability to improve their competitiveness.
The main challenge for Europe’s chemical industry is to preserve its production base and international market position amid increasing competitive pressure.