As per European Chemical Industry Council, companies across the sector are grappling with sky-high energy costs, stagnant demand, and fierce competition from China, raising fears of widespread deindustrialisation. 

Energy prices in Europe remain among the world’s highest, putting unprecedented pressure on margins. At the same time, foreign trade—once a pillar of European economic strength—shows little sign of recovery, leaving exporters struggling to compete globally. 

Industry leaders warn that traditional strategies are failing, as per Cefic. Europe’s highly regulated, open market, once a strength, now appears to be a liability. Imports are rising, exports are faltering, and the sector is entering a “critical phase,” according to analysts.

Investment is drying up amid mounting uncertainty, and forecasts for 2025-2026 are bleak. Factory closures are accelerating, shifting industrial advantage to countries with lower costs and threatening Europe’s long-term chemical production base. 

The message is clear: without urgent intervention, Europe risks losing its chemical industry edge to more competitive global markets.