What is VCI's 2026 forecast for Germany's chemical production, and how does it compare to its previous forecast?

VCI forecasts a 1.5% decline in Germany's chemical production for 2026, revising its earlier December 2025 forecast—which had projected stagnation for the chemical-pharma sector and a 1% decline specifically for chemicals—downward due to persistently challenging business conditions, rising costs, weak sales volumes, and intense international competition.

Why does VCI describe the first-half 2026 performance as 'disappointing' despite a modest improvement over H2 2025?

VCI calls the first-half 2026 results 'disappointing' because chemical production remained around 3% below the same period in 2025, with steep declines across key segments—including petrochemicals (-5.5%), polymers (-4%), and detergents/personal care (-3.5%)—and because the slight uptick is attributed solely to temporary factors linked to the Middle East conflict, not a sustainable recovery; VCI explicitly states 'it is a brief respite, not a turning point' and that the industry 'remains in crisis'.

Germany’s chemical output to decline 1.5% in 2026 – VCI

Jul 16, 2026

The German Chemical Industry Association (VCI) forecasts a 1.5% decline in chemical production for 2026 due to rising costs and geopolitical volatility. Investment has dropped for three consecutive years, prompting urgent calls for structural reforms to halt deindustrialization trends.

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Germany’s chemical output to decline 1.5% in 2026 – VCI

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Germany’s chemical output to decline 1.5% in 2026 – VCI

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