Overview
- Factories are running at roughly 70% capacity, with the VCI saying profitability typically requires above about 82%, and about half of firms report too few orders after a drop of more than 20% since 2021.
- The industry points to high energy costs, global overcapacity in basic chemicals, low‑priced Chinese exports and U.S. tariff policy as key pressures on competitiveness.
- For 2026, the VCI forecasts flat output for the chemical‑pharma sector and a 1% production decline for chemicals, implying around a 2% fall in sales.
- In 2025, sector production and producer prices fell about 0.5% year over year, and revenue slipped 1% to €220 billion, according to the association.
- Performance diverged as chemicals shrank (−2.5% output, −3% sales) while pharmaceuticals grew (~+3% output, +4.5% sales); employment edged down 0.5% to about 478,000 as BASF, Evonik and Wacker pursued savings and layoffs, with further cuts expected from closures and relocations.