The year 2024 witnessed a modest recovery in chemical production against a backdrop of global challenges—from supply chain disruptions and shifting regional policies to fluctuations in the energy markets, says Deloitte.

These hurdles have nudged some chemical companies toward reassessing and refining their strategies. As we enter 2025, the chemical industry landscape is unfolding with a mix of challenges and opportunities, Deloitte states.

Fitch predicts a neutral outlook for the global chemical sector in 2025, given the continuing soft demand and oversupply along most value chains.  According to Fitch, chemical margins will remain under pressure despite modest volume improvements and lower energy and feedstock costs, as a more robust economic recovery would be needed to absorb overcapacities while geopolitical risks mount. Moreover, China will remain at the centre of the sector’s woes, as further efforts will be needed to support its ailing property sector, a major driver of growth and chemical consumption in the country. Also, insufficient domestic demand is exacerbating competition in global markets, as new large-scale petrochemical sites added over the past four years look for export markets to optimise their operating rates. After a prolonged destocking of chemical value chains in 2023-2024, producers report volume increases but weak pricing power heading into 2025, and a weak sentiment in downstream industries has deterred restocking.

According to Wood Mackenzie, China’s capacities will continue to add pressure to global markets despite export-oriented Chinese players facing tougher conditions in 2025. “Overcapacity in China and highly integrated refinery/petrochemical production will be key to its industry competitiveness in 2025. US trade tariffs and anti-dumping duties on Chinese products, however, have the potential to materially change global trade flows,” Wood Mackenzie report states.

ICN collates Indian industry leaders views on 2024 and 2025

Maulik Patel, Chairman and Managing Director, Epigral Limited

“The Indian chemical sector is poised for significant growth, with projections showing that the market size will increase notably from US$ 220 billion in 2022 to an impressive US$ 300 billion by 2025. Importantly, the year 2024 will be a critical moment for the chemical industry, as it is expected to experience a substantial year-over-year increase in production levels, surpassing those of 2023. There is a revival of demand for few applications of chemicals, and this positive trend is expected to continue, driven by the end of the destocking cycle, especially within the specialty chemicals segment.

“Looking ahead, the Indian specialty chemicals industry is projected to reach around US$ 50 billion by 2025, reflecting robust demand and growth potential. Indian demand for various chemicals is increasing notably, as consumers seek quality products across multiple applications in diverse industries. According to the American Chemistry Council (ACC), a global expansion in chemical production is anticipated, with an estimated increase of 3.4% in 2024, followed by a further estimated rise of 3.5% in 2025. This optimistic forecast indicates a significant recovery from the modest 0.3% growth recorded in 2023.

“At Epigral, a company strategically focused on the domestic market, we are currently witnessing strong demand for specialty chemicals, including CPVC rand ECH. This heightened demand is primarily driven by several dynamic and expanding sectors, such as real estate, automotive, and renewable energy. We have an optimistic outlook for 2025, anticipating remarkable growth in both production volume and market value. As the Indian market continues to grow, and evolve, we are well-positioned to capitalize on these opportunities and uphold our commitment to meeting the needs of our customers in a changing economic landscape. “

Anand Srinivasan, Managing Director, Covestro (India)

“2024 has been a pivotal year for India’s drive towards sustainable growth, with industries and businesses increasingly embracing innovation and environmental stewardship. As global challenges like climate change take centre stage, the adoption of green technologies, circular economy models, and energy-efficient solutions has accelerated across sectors. This progress underscores India’s commitment to balancing economic development with ecological responsibility.

“At Covestro (India), sustainability is at the core of everything we do. This year, we made significant strides in advancing our mission of making the world a brighter place by delivering innovative, high-performance materials for industries such as automotive, construction, and electronics. Through collaborations with key stakeholders, we prioritized resource efficiency, renewable energy integration, and the development of products that promote recyclability and reduce carbon footprints.

As we step into 2025, our focus remains on driving sustainable innovation and empowering our partners to achieve their ESG goals. Together, we aim to co-create solutions that address the world’s most pressing challenges while fostering a future that is resilient, inclusive, and environmentally conscious.”

Ashish Dobhal, CEO UPL SAS

"2024 has been a pivotal year for the agriculture industry, marked by recovery with a growth rate of 3.5% in the July–September quarter—more than double the 1.7% recorded in the same period last year. In the first half of the year, the sector grew at 2.7%, slightly lower than the 2.8% growth recorded last year. This rebound, driven by an above-average monsoon and improved rural consumption, has been a key contributor to economic growth. Government initiatives such as the 'Digital Agriculture Mission,' aimed at modernizing farming practices, and the 'Namo Drone Didi' scheme, empowering women to use drones in agriculture, have been instrumental in fostering innovation and inclusivity in the sector.

Moreover, this year highlighted the growing importance of technology in farming, demonstrating how innovation can transform agricultural practices, making them more efficient and sustainable for the future.

At UPL, in line with our vision of ‘Reimagining Sustainability’ for farmers and food systems, we have taken significant steps to reduce our environmental impact, enhance our social responsibility initiatives, and strengthen our governance practices. The integration of biosolutions with conventional plant protection products has been a game-changer, offering holistic solutions for modern farming needs. By transforming the agriculture ecosystem—encompassing product usage, mechanization, risk cover solutions and soil health solutions —we are addressing the challenges posed by climate change and promoting more sustainable farming practices.

Our targets are centred on reducing environmental footprints, ensuring food security, fostering responsible production, and enhancing community well-being.

Looking ahead to 2025, technologies such as Artificial Intelligence (AI), Machine Learning (ML), sensor-based IoT, drones, and satellites are expected to become more accessible and scalable. These innovations offer immense potential to enhance productivity and foster prosperity across Indian farmlands, paving the way for precision agriculture. The government's commitment to research and development (R&D), improving supply chains and infrastructure, and enhancing production and storage can further emphasize achieving 'Atmanirbharta' in agriculture. Additionally, the adoption of sustainable agricultural practices among farmers, supported by targeted training and awareness programs, is expected to play a pivotal role. At UPL, we remain dedicated to empowering farmers with innovative solutions that drive productivity, sustainability, and resilience.”

Sanjiv Kanwar, MD, Yara South Asia

"2024 has been a year of significant progress and resilience in Indian agriculture. Several key transformations are shaping the sector, such as advancements in digital infrastructure, public-private partnerships, and a focus on high-yielding, climate-resilient crop solutions. However, there is a need for some interventions to make 2025 a year for Indian agriculture.

Looking ahead, we foresee a year of opportunities and growth, driven by innovative practices and progressive policies. Enhancing crop nutrition will be pivotal in this journey. By focusing on balanced and efficient nutrient management, we can improve soil health, boost crop yields, and ensure the production of high-quality produce. This approach will not only support farmers in achieving better outcomes but also contribute to the overall sustainability of the agriculture sector."

S Sunil Kumar, Country President, Henkel Adhesives Technologies India

“As we close 2024, Henkel Adhesive Technologies marks a year of progress driven by innovation, sustainability, and customer-centric solutions. From advancing sustainable production processes to launching eco-friendly product lines, we have focused on delivering solutions that address evolving market demands while meeting environmental goals.

Looking ahead to 2025, key industry trends—urbanization, mobility, sustainability, and digitalization—will continue to drive growth. As urban areas expand, advanced bonding technologies are enabling the development of high-performance, sustainable building materials that improve liveability and reduce environmental impact. In e-mobility, adhesives, sealants, and functional coatings will play an increasingly critical role in advancing battery safety, efficiency, and performance—essential for the growth of electric vehicles.

Sustainability remains a defining priority for businesses worldwide. The focus on material science, emissions reduction, and circular processes underscores the industry’s commitment to delivering long-term value for both customers and the environment. Investing in digital transformation today empowers organizations to streamline workflows, use resources more efficiently, and improve decision-making. Thereby, enabling the futureproofing of businesses to ensure they remain resilient and relevant.

At Henkel, we are committed to leading this transformation. By leveraging our expertise, fostering strategic partnerships, and delivering innovative, sustainable solutions, we are positioned to help our customers drive progress and achieve growth in an evolving industrial landscape.”

Pankaj Vyas, CEO and MD, Siemens Technology and Services

“2024 has been a year of rapid integration of AI into the way we work - moving beyond the buzz and helping people and machines team up more naturally. AI agents don’t just analyze data; they help us make decisions and act on them in the moment. As we step into 2025, we are increasingly seeing technologies like Generative AI, Digital Twins, and the Industrial Metaverse come together to build smarter and sustainable systems. Industries will be designing new hardware and infrastructure in digital environments first, ensuring that they not only work well, but are also environmentally friendly before they ever hit the real world. Digital tools will also allow us to tackle big challenges, from saving energy and protecting the planet to fostering a more intuitive relationship between people and the technology we use every day. The “Intelligence Revolution” is upon us, and its success depends on how thoughtfully we develop and embrace these new tools.”

Debi Prasad Dash, President, India Energy Storage Alliance (IESA) and Chair of India Electric Mobility Council (IEMC)

“2024 saw a significant change in Indian renewable space. Most of the solar tenders came up with energy storage as an option in India. Most solar tenders began incorporating energy storage as an option, leading to over 16 gigawatt-hours of hybrid tenders at competitive prices below 2 to 3 rupees. In 2022-2023, the Indian government has come up with multiple policies on energy storage including waiver of the transmission charges for the energy storage, and viability gap funding which was announced in the budget and implemented in the last part of 2024. The government’s initiatives included a 10% energy storage mandate for new solar projects, optimizing transmission lines, and creating substantial opportunities for battery energy storage systems (BESS) in India.

As the Indian Energy Storage Alliance (IESA), we anticipate a cumulative market potential of around 250 gigawatt-hours of battery energy storage requirements by 2032. Therefore, we believe that over the next seven years, India will become a market leader in this sector, alongside the US, Australia, Europe, and China.  Many Indian companies have evolved, and numerous global companies have entered the Indian market this year. We foresee an acceleration phase for the deployment of Battery Storage Systems (BSS) for renewables in India by 2025.”

Sriram Paramanand, Director of Partnering, Rockwell Automation India

“Reflecting on 2024, it's evident that it was a pivotal year for the entire manufacturing sector in India. The India manufacturing PMI has been strong throughout the year. The industry has embraced emerging technologies, fostered future-ready skills and integrated sustainability into its core operations. Moreover, the focus on increased automation and the incorporation of AI/ML technologies have made significant impacts on quality control and cybersecurity, ensuring safer and more efficient production lines.

“As we move forward into 2025, we will continue to leverage these technologies to promote sustainable growth and resilience. There should be a continued focus on innovation and institutional support for upskilling. Here's to a future that is not just prosperous, but also sustainable.”