Atradius – Global Chemicals Outlook, 2023

According to Atradius, the global chemicals market is expected to have subdued output growth of only 0.1% this year. The growth that does exist is mainly coming from Asia-Pacific, specifically China and India, while the Americas, Europe, and Africa have seen contractions in production. The industry is facing a challenging year due to its reliance on energy, feedstocks, and consumer confidence. The energy crisis has heavily impacted the chemical industry, as it relies on oil and gas as feedstocks and energy-intensive manufacturing processes. Additionally, high inflation and tight monetary policies have led to high feedstock prices and reduced spending from buyers and consumers. As a result, chemical producers have struggled to pass on higher production costs to their customers. The global chemicals outlook is closely tied to global economic conditions, as chemicals are used in many downstream industries. However, there is hope for a rebound next year, with a predicted growth of 3.1% driven by increased demand from sectors like construction and household goods. However, this recovery is expected to be gradual and may not gain momentum until the second half of 2024.