What were the key performance indicators for Germany's chemical industry in H1 2026, according to VCI data?

According to the VCI data cited in the news, Germany's chemical industry experienced a dual decline in H1 2026: production fell by 3% year-on-year, and revenue dropped by 1% year-on-year despite a 2% increase in average prices. When including the pharmaceutical sector, domestic chemical sales rose by 2% to €40 billion, but exports declined by 2.5% to €66 billion. Sectoral output varied: petrochemicals plunged 5.5%, polymers and personal care raw materials contracted significantly, while inorganic basic chemicals remained stable. Nearly half of chemical and pharmaceutical companies expect lower profits in 2026, with only 31% anticipating profit growth.

What are the main drivers behind the declining investment and R&D activity in Germany’s chemical industry, as reported by VCI?

The VCI identifies several critical barriers to domestic investment and R&D in Germany’s chemical industry: 86% of surveyed companies cite high operating costs as the top investment deterrent; additional constraints include energy and climate policies, lack of coherent industrial policy, and intensifying import competition. Investment intentions reflect this strain — only 19% plan to expand domestic investment, while 40% intend to increase overseas investment and nearly half are cutting domestic investment. Similarly, R&D is shifting abroad: 41% plan higher foreign R&D spending, just 19% aim to boost domestic R&D budgets, and 29% plan to reduce domestic R&D expenditures. The VCI further notes that European-wide capacity is shrinking and that investments in new plants and cutting-edge technologies remain severely insufficient.

German Chemical Industry Reports Dual Decline in Production and Revenue in H1

Jul 20, 2026

VCI data shows Germany's chemical sector production fell 3% and revenue dropped 1% in H1 2026 despite price hikes. Industry leaders warn high costs and policy uncertainty are driving investment and R&D overseas, indicating no immediate turnaround.

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German Chemical Industry Reports Dual Decline in Production and Revenue in H1

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