The American Chemistry Council (ACC) has projected a turnaround for the US chemical industry in 2025, following a couple of challenging years. According to the ACC, US GDP growth is expected to be 2.7% in 2024, with a slight decline in chemical output forecasted at 0.4% for the same year. However, a rebound is anticipated in 2025, with chemical output expected to increase by 1.9% [ca8e9be2].
The demand for chemicals in sectors such as semiconductors and electrical equipment has shown a significant increase, rising by 8% in 2024. Additionally, the housing market is projected to see a boost, with housing starts expected to reach 1.40 million in 2025. Motor vehicle sales are also anticipated to rise, reaching 16.2 million units in 2025 [ca8e9be2].
Despite these positive indicators, the industry faces challenges, particularly due to trade policy uncertainties. The potential for new tariffs from the incoming Trump administration poses risks that could impact the recovery trajectory of the chemical sector [ca8e9be2].
In a related context, the NextGen Chemicals & Petrochemicals Summit 2024, held in Mumbai, India, emphasized the importance of sustainability and a circular economy within the chemical industry. The summit highlighted India's ambition to grow its chemical market to US$ 2 trillion by 2047, focusing on minimizing waste and enhancing recycling efforts. Experts at the summit discussed the critical need for government policies, infrastructure development, and collaboration among industry stakeholders to achieve these goals [5850284c][fce76bc9].
The global chemical industry, currently valued at around $5 trillion, has seen India emerge as the fifth-largest producer. The Indian chemical sector has experienced a robust compound annual growth rate (CAGR) of approximately 11.7% over the past five years, indicating substantial growth opportunities for investors [0824df99]. As the US and Indian chemical industries navigate their respective challenges and opportunities, the emphasis on sustainability and economic growth remains a central theme for both markets.