By: ICN Bureau
Last updated : February 18, 2022 6:49 pm
The moderate 2.5% growth foreseen for the chemical industry in 2022 is likely to be driven by further demand from the manufacturing sector.
Cefic, the European Chemical Industry Council new data expects EU27 chemical output to grow by 2.5% in 2022, following growth of around 6% in 2021.
According to the Cefic, demand growth in 2021 was high in the consumer goods industries, such as furniture, electrical appliances, and textiles. And above average growth was recorded in the food and beverages industry as well as the European construction sector.
Export demand appears to be recovering too; exports to countries outside the EU27 expanded by more than 15% (Jan to Oct.) compared to 2020, amounting to more than €160 bn.
The moderate 2.5% growth foreseen for the chemical industry in 2022 is likely to be driven by further demand from the manufacturing sector.
In particular, the European automotive industry is expected to recover as supply chain issues should be easing over the year.
Yet the long-term outlook remains uncertain. High consumer price inflation and surging energy and feedstock prices are a risk for growth in consumer and industrial demand.
Commenting on the outlook, Marco Mensink, Cefic Director General, said: “The recovery in 2021 has been better than expected, bringing the industry back on track. Facing the huge transition investments expected from the industry in the next decades, a solid economic basis is very important. It will be crucial for the decision to not only develop new chemistries and technologies in general, but to invest these new sources for growth also in Europe. The 2022 outlook is positive but moderate, overseeing the many uncertainties Europe and the industry faces today. The chemical industry is however extremely resilient as shown during the COVID crisis. With the right policy choices made in the next two years, the chemical industry, as part of all strategic value chains, will have a key role to play in Europe. “