FRANKFURT / LONDON (IT BOLTWISE) – The chemical-pharmaceutical industry in Germany is facing significant challenges. In the third quarter of 2025, the industry experienced a decline in production, prices and sales. The Chemical Industry Association (VCI) sees no improvement in the short term and is calling on the federal government to take measures to support it.
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The chemical-pharmaceutical industry in Germany is faced with a further deterioration in its situation in the third quarter of 2025. According to the Chemical Industry Association (VCI), production as well as prices and sales have fallen again. Plant utilization has also decreased, which is due to a persistently weak industrial economy and global overcapacity.
The weakness in the export business is particularly worrying, which, according to VCI Managing Director Wolfgang Große Entrup, is due to high location costs and declining sales in non-European markets. The industry is able to benefit less and less from growth in other countries, which further clouds business expectations.
The pharmaceutical industry, which was previously seen as a stabilizing factor, is now also feeling the effects of global trade conflicts, particularly tariffs in the US market. This leads to additional burdens and makes it more difficult for the industry to recover. The VCI is therefore demanding a liberation from the federal government in order to ensure the competitiveness of the German chemical and pharmaceutical industry.
Compared to the previous year, production fell by 1.5 percent and capacity utilization is now only 70 percent. Producer prices fell by 0.6 percent, which led to a decline in sales of 1.5 percent compared to the previous quarter despite continued cost burdens. The industry’s total turnover is 52.1 billion euros, which corresponds to a decrease of 2.3 percent compared to the previous year.
The VCI is sticking to its forecast for the year as a whole, which at best envisages stagnation in chemical and pharmaceutical production. An expected decline of around 2 percent in chemical production could be partially compensated for by the pharmaceutical industry. Due to slightly declining prices, total sales are expected to decline by around 1 percent to 221 billion euros.
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