As 2025 approaches, the chemical industry is poised for significant transformations driven by sustainability imperatives, technological advancements, and evolving market dynamics. A recent Deloitte report highlights that the sector is focusing on innovation, sustainability, and resiliency to drive efficiency and growth.
In line with these trends, companies like Evonik are implementing extensive restructuring programs to streamline operations and enhance competitiveness. Evonik plans to reduce its workforce by over 7,000 jobs by 2026 and is considering spinoffs of certain assets to adapt to the changing market environment.
Additionally, the industry is witnessing a shift towards green chemistry and sustainable practices. For instance, AP Møller Holding is investing in a €1.5 billion green plastics factory in Antwerp, Belgium, aiming to produce polypropylene and polyethylene using green methanol derived from low-carbon hydrogen or biomaterial. This initiative represents a significant step towards reducing fossil fuel use in plastics production.
Furthermore, the global chemical sector is expected to experience modest volume improvements and lower energy and feedstock costs in 2025. However, margins may remain under pressure due to soft demand and oversupply along most value chains, as noted by Fitch Ratings.
These developments underscore the industry’s commitment to embracing innovation and sustainability while navigating economic and geopolitical challenges to ensure long-term growth and resilience.
