In the second quarter of 2025, demand for products from the German chemical and pharmaceutical industry continued to decline.

According to the German Chemical Industry Association (VCI), production, sales and prices fell again in the second quarter of 2025. According to the quarterly report, turnover in the industry was 5.2 per cent lower than in the previous quarter at €52.2 billion, and 2.7 per cent lower than a year ago. Production fell by 3.8 per cent compared with the previous quarter and was 3.1 per cent lower than in the previous year. The association reports that the hoped-for turnaround in domestic business has not materialised. The shortage of orders had also worsened. The difficult situation in the industry is particularly evident in capacity utilisation. According to the VCI, this has slumped sharply in the second quarter due to low demand and is now well below the profitability threshold, reaching its lowest level since 1991 at only 71.7 per cent. The association does not expect any improvement in the short term.

 
‘The second quarter was another tough test for the chemical industry,’ said VCI Chief Executive Wolfgang Große Entrup at the presentation of the quarterly report 2/2025. He pointed to a high level of uncertainty among companies, which is paralysing business, and called on the German government to take decisive action now to reduce structural deficits and bureaucracy in Germany.

 
Despite the weak performance, the VCI is sticking to its forecast for the year as a whole. The association expects stagnating production and declining prices for chemicals to result in a 2 per cent decline in sales, with total sales for the industry falling by 1 per cent to €221 billion.
 
Further information: External link to the VCI website, where the quarterly report 2/2025 is available for download

 
Sources:

• VCI press release (3.9.2025)
• Photo: © VCI