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Basic Chemical Manufacturing in Europe - Market Size, Industry Analysis, Trends and Forecasts (2025-2030)

EU-C2011 December 2025 Spotlight Report

Revenue

€365.0bn

2020-2025 6.1 %
2025-2030 X.X %

Employees

671k

2020-2025 8.3 %
2025-2030 X.X %

Businesses

7,309

2020-2025 0.6 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

Basic Chemical Manufacturing in Europe industry analysis

The basic chemical manufacturing industry is highly dependent on global commodity markets, since many basic chemicals are derived from natural gas. Additionally, downstream manufacturers, like metal product manufacturers, are also affected by volatile commodity prices, which can dent demand for basic chemicals. Russia's invasion of Ukraine caused energy and feedstuff prices to skyrocket as a result of Western countries' sanctions on Russian exports, which came at the same time as OPEC+ oil supply cuts. Production costs escalated and business and consumer confidence were shot by rising living costs, denting demand throughout 2022 and 2023. However, soaring prices kept industry revenue up, despite the disruptions to downstream demand. Over the five years through 2025, revenue is forecast to hike at a compound annual rate of 6.1% to €365 billion, including a 2.1% contraction in 2025, due to costs and selling prices normalising.

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Industry Statistics and Trends

Basic Chemical Manufacturing in Europe key trends

The effects of the Russia-Ukraine conflict add substantial costs.

 

Many chemicals require oil and gas as inputs, so disruption to the supply of these key commodities has put upwards pressure on production costs.

Bio-based products become more popular.

 

R&D activity is rising as manufacturers seek to capitalise on growing demand for sustainable, bio-based chemicals.

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Basic Chemical Manufacturing in Europe

Industry Revenue

Total value and annual change from 2012-2030. Includes 5-year outlook.

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Basic Chemical Manufacturing in Europe market size (2020-2025)

Industry revenue has grown at a CAGR of 6.1 % over the past five years, to reach an estimated €365.0bn in 2025.

Trends and Insights

Rising eco-awareness hit Ethylene sales to packaging manufacturers

  • Polyethylene is the world’s most widely used plastic. It’s made by the polymerisation of ethylene, a basic organic chemical compound, and it’s the material used to make most plastic bags, plastic films and plastic containers.

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Basic Chemical Manufacturing in Europe outlook (2025-2030)

Market size is projected to grow over the next five years.

Tightening emissions regulations put pressure on chemical manufacturers

  • European carbon regulations are set to tighten significantly between 2025 and 2030. The EU aims to reduce net greenhouse gas emissions by at least 55% by 2030 and the UK Emission Trading Scheme will cut its cap from 69 million allowances in 2024 to just 24 million by 2030. These stricter rules could double carbon costs for basic chemical producers using hydrocarbon feedstocks.

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Revenue

€365.0bn

2020-2025 6.1 %
2025-2030 X.X %

Employees

671k

2020-2025 8.3 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 8.3 % *
  • Job Growth

Top 5 Countries

  1. Iceland +157.0%
  2. Serbia +16.1%
  3. Latvia +13.0%
  4. Slovakia +12.7%
  5. Slovenia +9.6%

Bottom 5 Countries

  1. Lithuania -3.8%
  2. Hungary -3.3%
  3. United Kingdom -2.9%
  4. Russia +0.5%
  5. France +0.6%

* CAGR values are for the years 2020-2025.

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Biggest companies in the Basic Chemical Manufacturing in Europe

Company
Market Share (%)
2025
Revenue (€m)
2025
Profit (€m)
2025
Profit Margin (%)
2025
LyondellBasell Industries Holdings NV
38,382.5
2,396.1
6.2
INEOS Group Holdings SA
10,786.0
1,671.0
15.5
BASF SE
67,880.0
2,973.2
4.4

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Basic Chemical Manufacturing in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Basic Chemical Manufacturing industry in Europe in 2025?

The market size of the Basic Chemical Manufacturing industry in Europe is €365.0bn in 2025.

How many businesses are there in the Basic Chemical Manufacturing industry in Europe in 2025?

There are 7,309 businesses in the Basic Chemical Manufacturing industry in Europe, which has grown at a CAGR of 0.6 % between 2020 and 2025.

Has the Basic Chemical Manufacturing industry in Europe grown or declined over the past 5 years?

The market size of the Basic Chemical Manufacturing industry in Europe has been growing at a CAGR of 6.1 % between 2020 and 2025.

What is the forecast growth of the Basic Chemical Manufacturing industry in Europe over the next 5 years?

Over the next five years, the Basic Chemical Manufacturing industry in Europe is expected to grow.

What does the Basic Chemical Manufacturing industry in Europe include?

Dyes and pigments and Organic basic chemicals are part of the Basic Chemical Manufacturing industry in Europe.

Which countries have the most businesses in the Basic Chemical Manufacturing industry in Europe?

The European country with the most businesses in the Basic Chemical Manufacturing industry is Russia.

How competitive is the Basic Chemical Manufacturing industry in Europe?

The level of competition is high and increasing in the Basic Chemical Manufacturing industry in Europe.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

Companies in this industry manufacture basic chemical products, fertilisers and associated nitrogen compounds, as well as plastics and synthetic rubber in primary forms. They also produce liquefied or compressed gases, dyes and pigments, chemical elements, inorganic acids and compounds, organic compounds and distilled water.

Related Terms

Organic ChemicalsInorganic ChemicalsYield

What's included in this industry?

Dyes and pigmentsOrganic basic chemicalsInorganic basic chemicals

Companies

LyondellBasell Industries Holdings NVINEOS Group Holdings SABASF SE

Industry Code

ISIC 2006

2011 - Manufacture of basic chemicals in Europe

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Performance

Key Takeaways

Rising eco-awareness hit Ethylene sales to packaging manufacturers

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Revenue Highlights

Trends
  • Revenue
  • 2025 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Basic Chemical Manufacturing in Europe industry (2012 -2030)
  • Employees in the Basic Chemical Manufacturing in Europe industry (2012 -2030)
  • Business in the Basic Chemical Manufacturing in Europe industry (2012 -2030)
  • Profit in the Basic Chemical Manufacturing in Europe industry (2012 -2030)
Analysis

What's driving current industry performance in the Basic Chemical Manufacturing in Europe industry?


Outlook

Analysis

What's driving the Basic Chemical Manufacturing in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Basic Chemical Manufacturing in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Basic Chemical Manufacturing in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Exports are likely to slide as US tariffs make European chemicals less competitive in this market. Basic chemicals face immediate 10% tariffs and a 20% for EU products starting in July 2025. This is likely to hit Germany hardest as the US absorbs nearly a quarter of its pharmaceutical exports.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Basic Chemical Manufacturing in Europe industry's products and services performing?

Analysis

What are innovations in the Basic Chemical Manufacturing in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Basic Chemical Manufacturing in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2025)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2025)
  • Share of Total Industry Enterprises by Region (2025)
  • Share of Total Industry Employment by Region (2025)
  • Share of Total Industry Wages by Region (2025)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2025)
  • IVA (2025)
  • Enterprises (2025)
  • Employment (2025)
  • Exports (2025)
  • Imports (2025)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Mergers and acquisitions are commonplace. Competition between chemical producers is intense, encouraging them to join forces or look for takeover targets to grab more of the market.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2020-2025)

Companies

Data Tables

Top 11 companies by market share:

  • Market share (2025)
  • Revenue (2025)
  • Profit (2025)
  • Profit Margin (2025)

Data Tables
  • Countries of operation for LyondellBasell Industries Holdings NV
  • Countries of operation for INEOS Group Holdings SA
  • Countries of operation for BASF SE
  • Countries of operation for Solvay SA
  • Countries of operation for Versalis SpA
  • Countries of operation for Air Liquide SA
  • Countries of operation for Dow Inc
  • Countries of operation for Repsol SA
  • Countries of operation for Wacker Chemie AG
  • Countries of operation for BorsodChem
  • Countries of operation for Borealis AG

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Strict laws govern chemical use. Stringent requirements are placed on chemical production, use and disposal, with the aim of driving innovation towards more sustainable products.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Basic Chemical Manufacturing in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Competition and high operating costs constrain profit. Price competition (both internally and from low-cost imports from China) puts significant strain on chemical manufacturers’ returns, while persistently high energy bills add to operating costs.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Basic Chemical Manufacturing in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.