Chemicals and AI: Key Trends Shaping 2025-2026

The chemical industry in 2025 faces ongoing uncertainty due to tariffs, geopolitical tensions, and overcapacity, especially in Europe, which is experiencing plant closures and economic contraction. Meanwhile, India shows rapid growth driven by domestic demand, and China continues to reshape global trade with significant capacity expansion. AI integration is rising across the sector, while sustainability efforts are subdued, impacted by economic and political factors. Overall, the industry is undergoing a major reshaping, with a long-term outlook of recovery possibly not until 2027.