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Chemical Industry to look gradual demand recovery in 2025 – Report

Taanvi Sawhnay by Taanvi Sawhnay
May 15, 2025
in Latest News, Speciality Chemicals, World
Reading Time: 2 mins read
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Chemical Industry to look gradual demand recovery in 2025 – Report

Photo Credit: https://economictimes.indiatimes.com/

B&K Research anticipates a gradual demand recovery in the global chemical industry in 2025. While 2024 saw modest improvements, companies are cautiously optimistic.

Even in the positive view the global chemical industry is anticipated to witness a gradual recovery in demand throughout 2025, according to a latest report by B&K Research.

The report emphasize that while 2024 saw some advancement in volumes throughout segments, the general overall performance was modest and enterprises remain carefully positive about the year ahead.

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It stated “After a modest 2024 performance, Chemical enterprise’s outlook for 2025 remains mixed, with a few expressing worries about demand recovery, at the same time remained optimistic. Even with the optimistic view, demand increase is anticipated to be gradual”.

The report stated that global chemical, specialty chemical, and agrochemical enterprises pronounced their fourth quarter and complete-year outcomes for FY24 and calendar year 2024, with growth largely pushed by volume growth.

However, pricing trends remained vulnerable across segments, indicating that the recovery was not broad-based.

One of the main development at some point of 2024 was the end of the prolonged phase of world stock destocking in the chemicals and specialty chemicals sectors.

The report mentioned that this destocking phase, which had impacted demand and income visibility, in large part came to a close by the end of 2024. This, in turn, allowed businesses in these segments to submit year-on-year volume growth.

In contrast, the agrochemical segment persevered to face inventory demanding situations. Although the stress from excess inventory has reduced substantially, it still stays a concern.

Despite this, agrochemical enterprises also reported year-on-year volume increase in 2024, navigating through a hard pricing environment.

Looking in advance to 2025, the outlook for the chemical industry stays blended. While a few enterprises are hopeful about a recovery in call for, others are greater careful. Even among the optimistic players, the report stated call for increase is anticipated to be slow and gradual.

Agrochemical enterprises are forecasting further volume boom in 2025 as inventories keep to normalize. However, low farm product prices should act as a dampener, and pricing pressures are probably to persist.

Importantly, the report referred to that any volume recovery in global chemicals, specialty chemicals, and agrochemicals is predicted to assist growth in the Indian chemical sector as well. But this recovery is anticipated to come without meaningful assist from pricing trends, apart from any capability outcomes from current tariff changes.

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Taanvi Sawhnay

Taanvi Sawhnay

I’m Taanvi Sawhnay, known as Tan, a professional blogger with a deep interest in the global chemical industry. I’ve spent years writing for various platforms, delivering insightful analysis and up-to-date news. At ChemDive, I share my knowledge and passion, making complex industry trends accessible to professionals, academics, and enthusiasts alike. My goal is to engage readers with clear, informative content while keeping them informed about the latest developments in the chemical world.

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