In Q1 2025, the chemicals industry demonstrated renewed strength, marked by global production recovery, sustainability-driven innovation, and a surge in M&A activity.

• Global Recovery and Regional Growth: Global chemical production is forecast to grow 3.5% in 2025, led by the Asia-Pacific region. The U.S. market remains competitive due to lower energy costs and increasing demand in sectors like semiconductors and automotive.

• Sustainability and Innovation Drive Strategy: Companies are accelerating investment in green chemistry, biopesticides, renewable feedstocks, and smart manufacturing. Sustainability is reshaping R&D, with early adopters positioned for long-term gains as consumers and regulators favor eco-friendly solutions.

This momentum, paired with increasing digitization and supply chain resilience strategies, indicates a positive long-term outlook for the sector despite near-term macroeconomic pressures.