Q1 2025 Chemical Industry: Diverging Trends

The first quarter of 2025 highlights a continued divergence between the European and US chemical industries. According to CEFIC, the European sector remains mired in uncertainty, with output growth forecast at just 0.5% for the year—down sharply from 2.5% in 2024—amid persistently weak demand, high energy costs, and capacity utilization well below historical averages. Notably, Belgium saw a 9.1% production increase, but major economies such as the Netherlands and France posted declines, and Europe’s chemicals trade surplus shrank by 25% year-on-year as imports, especially from China, outpaced domestic output.

In contrast, the American Chemistry Council’s (ACC) Q1 2025 Economic Sentiment Index signals a more stable environment for US chemical manufacturers. While not immune to global headwinds, the US industry benefits from comparatively lower energy costs and steadier domestic demand, helping maintain higher capacity utilization rates and a more optimistic outlook for the remainder of the year.

For a deeper dive into these regional trends, visit our website and consult the full CEFIC Q1 Chemical Trends Report and the ACC’s Economic Sentiment Index for Q1 2025.