Europe’s Chemical Industry Still Waiting for Its Recovery
Europe’s chemical output fell 2.0% in January to July 2026, CEFIC reports. Business confidence is improving, but weak demand and competitiveness pressures are holding back a recovery.
The EU27 chemical industry remains under pressure despite improving business confidence, CEFIC reports in its Chemical Trends Report for Q3 2026.
According to CEFIC, production fell 2.0% between January and July 2026 compared with the same period in 2025. Demand stayed weak, and structural competitiveness pressures continued to intensify. CEFIC notes that easing inventory pressures and better sentiment have not yet translated into a broad and sustainable recovery.
CEFIC reports that results across member states remained highly uneven. Spain posted production growth of 2.8%, and France stabilized, but output declined in most other major producing countries. Upstream segments came under the greatest pressure, particularly “other organic basic chemicals”, polymers and crop protection products. CEFIC says parts of the specialty and consumer chemicals sectors proved more resilient.
Sales rose 2.1% between January and June, but CEFIC stresses that this was mainly driven by a 5.1% rise in producer prices rather than stronger production or demand. In the assessment, the increase in turnover does not point to a recovery in physical activity.
Trade also weakened. Export values fell by 4.2% between January and July, while imports dropped 3.1%. As a result, the extra-EU27 chemical trade surplus shrank by €2.2 billion to €21.4 billion. CEFIC attributes the decline mainly to lower exports to the United States and continued weakness in other organic basic chemicals. It adds that the narrower volume deficit reflected imports contracting faster than exports, not stronger EU competitiveness.
Weak demand, falling production, upstream overcapacity, and intensifying global competition continue to constrain the industry, while chemical growth is increasingly concentrated in China.
