Global Chemicals Market Entering a Transformative Phase

The global chemicals market is entering a pivotal phase, shaped by scientific breakthroughs, shifting regional dynamics, and strategic realignments by leading players. Developments in sustainable production methods and advanced feedstock technologies, alongside ongoing restructuring by major firms, are redefining growth trajectories. From performance materials to petrochemicals and recycling, the market is undergoing one of its most significant transformations in over a decade.

Latest Developments in Chemicals:

• Scientists have created a new technique to destroy harmful “forever chemicals” by using a material that becomes active when exposed to sunlight. A team of researchers has now discovered a method to decompose these chemicals, breaking them down into byproducts such as fluoride, which is safe in low concentrations.

• LyondellBasell has announced plans to increase propylene production capacity at its Channelview Complex near Houston. Construction is scheduled to break ground in the third quarter of 2025, with operations anticipated to begin by late 2028. The new unit will produce around 400,000 metric tons of propylene annually, support up to 750 workers during peak construction, and create 25 permanent positions once operational.

• Sumitomo Chemical Co., Ltd. has achieved a major milestone in the petrochemical sector by successfully scaling up and operating a pilot plant for its proprietary technology that converts ethanol directly into propylene, a vital chemical. The company revealed that the facility, located at its Chiba Works, plays a central role in a demonstration project designed to pave the way for commercialization in the early 2030s.

C&EN’s Global Chemical firms for 2025

1. BASF has maintained its position as the world’s largest chemical company for the sixth year in a row, but its future ranking could change as it undergoes a significant portfolio transformation. In September, new CEO Markus Kamieth unveiled a strategy that may see the German giant divest several key businesses, including its agrochemical, battery materials, coatings, and emissions catalyst units, which together generate roughly $28 billion in annual revenue. The company intends to spin off its agrochemical division while exploring strategic options for the others. BASF will continue to focus on its core strengths in chemicals, performance materials, industrial solutions, nutrition, and personal care. “We want to be—and remain—a chemical company at our core. This is our DNA,” Kamieth emphasized. Additionally, in January, BASF disclosed plans to sell its food ingredients segment—which includes emulsifiers, aeration agents, and omega-3 oils—to global food processor Louis Dreyfus.

2. Dow, known for its cost-efficient production, is being pressured by an industry-wide downturn that CEO Jim Fitterling warns could last through the decade. In response, the company is reviewing its underperforming polyurethane raw materials operations in Europe, closing plants in Germany and the UK, and cutting about 2,300 jobs—around 6% of its global workforce. Dow has also delayed its $6.5 billion Path2Zero low-carbon ethylene cracker project in Alberta, a move expected to save $1 billion this year, with a final decision on construction postponed until 2026.

3. LyondellBasell is investing about $300 million in the business but could recover up to $115 million in profits if performance improves. The company argues the move is reasonable since the sites have been unprofitable and cost around $125 million annually to maintain. This divestment is part of a broader downsizing effort in Europe. Its Brindisi, Italy, facility is still under review, while in March, LyondellBasell and Covestro announced the closure of their propylene oxide–styrene plant in Maasvlakte, the Netherlands. Meanwhile, the firm is shifting focus to lower-cost regions, with plans for a new metathesis unit in Channelview, Texas, and a feasibility study for an ethylene cracker complex in Saudi Arabia in partnership with Sipchem.

4. While petrochemical investment in North America has slowed during a prolonged downturn, ExxonMobil appears to be moving against the trend. The company has applied for local tax incentives in Calhoun County, Texas, for a proposed $8.6 billion ethylene cracker complex, though it notes the investment could be made elsewhere. ExxonMobil, alongside Sabic, previously opened a similar facility in Corpus Christi, Texas, in 2021. In a separate effort, the firm announced in December a $200 million plan to add plastics recycling plants using its pyrolysis technology at its Baytown and Beaumont, Texas, sites. With its first Baytown unit already operating since 2022, the expansion will raise ExxonMobil’s plastics recycling capacity to 230,000 metric tons annually by 2026.

5. In May 2024, DuPont unveiled plans to divide into three separate companies. One would have managed well-known DuPont brands such as Kevlar polyaramid and Tyvek polyethylene fabrics, another would have focused on electronic materials, and the third would have taken on the firm’s water treatment portfolio. However, executives later concluded that the high-growth water business was better aligned with DuPont’s core operations, leading them to cancel that part of the split. The company is still moving forward with spinning off its electronic materials division in November under the name Qnity Electronics. This new entity, which generated $4.3 billion in sales in 2024, will derive roughly 57% of revenue from semiconductor materials—including lithography chemicals and chemical mechanical planarization slurries—and the remainder from interconnect materials such as packaging and thermal management solutions.

C&EN’s 2024 Chemical Sales of Leading Global Companies

Future Prospects

The chemicals market faces a dual path: near-term restructuring amid cost pressures, and long-term growth driven by innovation and sustainability. Key examples shaping the future include:

• BASF’s focus on core chemical businesses expected to streamline operations and boost competitiveness.

• ExxonMobil’s recycling and ethylene projects demonstrating the role of circular economy solutions.

• Sumitomo’s ethanol-to-propylene technology potentially transforming feedstock sourcing for petrochemicals.

• New PFAS remediation techniques promising large-scale environmental applications.

The transition to low-carbon operations, advanced recycling, and bio-based feedstocks will be central to future competitiveness. For B2B stakeholders, this means procurement strategies must increasingly factor in sustainability credentials, supply security, and regional cost advantages.

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