About the Report

The global chemical industry is at the centre of a structural transformation driven by sustainability pressures, shifting competitive dynamics, and rapid technological innovation. In the EU-27, recent data from Cefic show a clear erosion of Europe’s global leadership position - its share of worldwide chemical sales declined from 27% in 2004 to 13% in 2024, while China’s share expanded dramatically to 46% up from just 10% in 2004. This shift reflects structural cost disadvantages, slower capacity growth, and the rapid industrial expansion of Asia. By contrast, ASEAN and LatAm have maintained relatively stable global positions, benefiting from regional demand growth without fundamentally affecting global market structure.

At the same time, sustainability considerations are reshaping production priorities. Circularity objectives are playing an increasingly important role in European plastics and chemical production, with recycled plastics accounting for a growing share of feedstock and helping to reduce reliance on fossil-based inputs. This transition reflects broader decarbonisation imperatives, as the chemical sector seeks to reduce emissions, improve resource efficiency, and align with climate neutrality targets. Circular feedstocks and low-carbon production pathways are now central
to maintaining long-term industrial competitiveness.

Digital technologies, and artificial intelligence in particular, are emerging as critical enablers of this transition.