What were the key production and revenue trends in Germany's chemicals sector in H1 2026, according to VCI?

According to VCI, Germany’s chemicals sector saw a 3% year-on-year decline in output and a 1% drop in revenues in H1 2026, despite a modest 2% increase in pricing; petrochemicals experienced the steepest output fall at 5.5%, while polymer and personal care manufacturing also declined substantially, and inorganic/basic chemicals remained nearly stable.

What are the main barriers cited by German chemical and pharmaceutical companies for domestic investment and innovation?

The top barrier to domestic investment is the high cost of operating in Germany (cited by 86% of respondents), followed closely by energy and climate policy (nearly as many), lack of coherent industrial policy (61%), and rising imports (over half); additionally, only 19% expect to increase domestic capital expenditure versus 40% planning higher overseas spending, and just 19% expect to boost R&D investment domestically compared to 41% targeting increases abroad.

Germany Chemical Sector H1 Production Slips Amid Crisis – VCI

Jul 16, 2026

Germany’s chemical and pharmaceutical sectors saw production drop 3% in H1 2026, with petrochemicals leading declines. Despite modest pricing improvements, high energy costs and regulatory barriers continue to drive investment overseas, prompting calls for further government reform.

icis

2026-07-16

Germany Chemical Sector H1 Production Slips Amid Crisis – VCI

Germany Chemical Sector H1 Production Slips Amid Crisis – VCI

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