Germany's VCI predicts a "difficult road" and a stagnant chemical industry in 2026
VCI, the German chemicals lobby, expects that orders and sales will stagnate by 2026 due to high regulatory uncertainty, uncompetitive?production costs, and slow approval process.
The ?association, which represents around 1,900 companies, said revenues in the chemical-pharmaceutical industry fell 1% to 220 billion euros ($256.26 billion) in 2025.
The German chemicals industry, which employs around half a million people, is under increasing pressure due to high production costs, bureaucratic burdens, and a stagnant economy. This pressure is compounded by U.S. import tariffs.
"The industry is sending an S.O.S." "2025 was once more a very difficult year for our sector, and the outlook doesn't look any better," said Markus Steilemann, VCI President?and CEO at Covestro.
According to the statement, the crisis in this sector has also been reflected in employment figures. This year, there were 2,400 less people employed in the chemical and pharmaceutical industry.
"We cannot afford confrontation. We must face uncomfortable truths, and move forward. It will take a lot of effort to transform our economy and make it competitive. Steilemann stated that it will be "a difficult road, but we must take it with the combined effort of politics, businesses and society."
He also said that the high U.S. Tariffs, Chinese Overcapacity and the expensive Euro are also affecting business.
(source: Reuters)
