The European chemicals industry faces a critical downturn

Whilst the global chemicals market is expected to grow by 3.8% by 2025, driven almost exclusively by China (46% of the world market share), Europe is sliding into recession. Production on the continent has fallen by 2.4%, and industrial capacity has plummeted by 9% over the past four years. In France, the situation is also deteriorating, with revenues down by 1.3% and the trade surplus falling sharply by 18%. Adding to this already fragile context is the geopolitical shock linked to tensions in the Middle East. Soaring energy prices in Europe, in contrast to their stability in North America and Russia, are creating a major competitiveness gap. At the same time, logistical disruptions are intensifying, with rising transport costs and more than 100 Asian sites subject to force majeure, putting strategic raw material supplies at risk. Against this backdrop of uncertainty, France Chimie has decided not to issue any forecasts for 2026. Despite these headwinds, the French chemical sector retains many levers, particularly in innovation (batteries, recycling, biotechnology), decarbonisation – with a target of cutting down CO₂ emissions by 76% by 2030 – and employment, with 24,000 new jobs expected by 2025. Faced with this urgent situation, France Chimie is calling for immediate measures centred on four priorities: the extension of carbon compensation mechanisms, the strengthening of trade protections, massive support for industrial investment and the securing of strategic European sectors. For its president, Frédéric Gauchet, the sector’s survival is directly linked to the continent’s industrial sovereignty and ecological transition.