Deloitte Outlook Flags Headwinds for Chemical Industry in 2026
In its 2026 Chemical Industry Outlook, Deloitte reports that the global chemical industry is expected to remain under pressure as it enters 2026, following a prolonged downcycle marked by weak demand, overcapacity and elevated uncertainty.
According to the report, global chemical production growth forecasts have fallen to about 2% for 2026 after expectations for a stronger recovery failed to materialize in 2025. Deloitte cites softened economic growth, ongoing geopolitical and trade tensions and a fragmented regulatory landscape as key factors weighing on investment decisions and trade activity.
Persistent overcapacity in basic chemicals continues to pressure operating rates and profit margins, particularly in regions facing higher energy and feedstock costs. Demand is expected to remain uneven across major end markets, including construction, automotive and consumer goods, while some growth opportunities may emerge in semiconductors driven by data center and artificial intelligence investment.
Deloitte notes that many chemical companies are responding by prioritizing cash generation, restructuring portfolios and reassessing supply chains to improve resilience amid shifting trade policies and tariffs. The outlook also highlights increased focus on innovation and digital tools, including broader adoption of artificial intelligence, as companies seek efficiency gains and long-term competitiveness.
Read Deloitte's full outlook here.
This outlook reflects ongoing developments across Market Reports covering global chemical and materials markets and their implications for downstream industries, including paint and coatings.
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