5 Must-Know Facts About The EU Chemical Industry
The European Union was established on November 1, 1993, Maastricht, the Netherlands and one of the primary pillars of the EU economy is its chemical industry. While its global competitiveness has taken a backseat in recent years against emerging chemical leaders like India and China, favorable CETA and the EU-Japan Economic Partnership Agreement are expected to boost trade activity in upcoming years. Here are 5 must-know facts about the EU chemical industry.
1. EU Global Chemical Market Share Is Falling
The long term EU capacity utilization rate has been above 80%. Compared to this, the capacity utilization of chemical industry in India has been 60.50%. EU chemical capacity utilization was at 82.5% during the second quarter of 2019.
1. EU Global Chemical Market Share Is Falling
The
European Union was established on November 1, 1993, Maastricht, the Netherlands
and one of the primary pillars of the EU economy is its chemical industry.
While its global competitiveness has taken a backseat in recent years against
emerging chemical leaders like India and China, favorable CETA and the EU-Japan
Economic Partnership Agreement are expected to boost trade activity in upcoming
years. Here are 5 must-know facts about the EU chemical industry.
In 1998, the EU share of the global chemical market stood at 33%. This has fallen to 17% over the last two decades. However, its dominance in the specialty and pharma segment continues uninterrupted.
2. EU is the Largest Importer of US chemicals
In 1998, the EU share of the global chemical market stood at 33%. This has fallen to 17% over the last two decades. However, its dominance in the specialty and pharma segment continues uninterrupted.
2. EU is the Largest Importer of US chemicals
EU consumes nearly 18% of the US chemical exports. The US is closely followed by China. EU accounts for nearly 13% of Chinese chemical exports.
3. EU has a Chemical Surplus
The EU is the only region with a trade surplus, higher export value than import value, with other regions of the world. Over the last decade, EU chemical export data to the world has increased from €100 Billion in 2009 to €158 Billion in 2017. This does not account for the intra-EU trade. Despite the increase in export value, it's export market share dropped from 22.4% in 2004 to 20.5% in 2017.
4. Consistent Capacity Utilisation
The long term EU capacity utilization rate has been above 80%. Compared to this, the capacity utilization of chemical industry in India has been 60.50%. EU chemical capacity utilization was at 82.5% during the second quarter of 2019.
5. Energy Costs Remain A Consistent Pain for Industry Players
Last but not least, energy costs continue to peg back EU competitiveness in the global chemical landscape. High power tariffs skyrocket production costs which is one of the primary reasons why BRICS nations have gained global chemical market share. In addition to energy costs, factors like high ethylene cash cost, have also contributed significantly to towards EUs declining market share.
The EU chemical industry is in the middle of a transition. It aims to leverage Industry 4.0 technologies for sustainability as well as desires stronger penetrations in the manufacturing and construction sectors through innovation and diversification. As far as its traditional strongholds, i.e specialty, and pharma chemicals segment, it will continue to dominate global markets in the future too.
The EU chemical industry is in the middle of a transition. It aims to leverage Industry 4.0 technologies for sustainability as well as desires stronger penetrations in the manufacturing and construction sectors through innovation and diversification. As far as its traditional strongholds, i.e specialty, and pharma chemicals segment, it will continue to dominate global markets in the future too.
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