The global picture for 2023 provides a clear message: Europe is at a competitive disadvantage compared to the USA, China, and the Middle East, due to high energy and feedstock costs, among other factors. This is illustrated with ethylene production (a measure of cost competitiveness) in Europe being 3.2 times more expensive compared to the USA in 2023.
In 2023, EU27 chemical production fell by 8.5%, compared to 2022, and is still 11% below the pre-crisis levels (2014-2019). 2024 is showing modest signs of improvement, but not recovery yet. Output in 2024 was 2.5% above 2023鈥檚 levels (Jan-Sep). In absolute terms, the industry may continue to grow, but only at a slower pace.
Capacity utilisation in the EU shows no sign of improvement in 2023-2024: it fluctuates around 75%, while the historical average is 81%. This directly impacts productivity and profitability.
EU27 chemicals output, above the previous year’s level, yet below average
EU27 chemical output (2008-2024)
EU27 chemical capacity utilisation remains below its long-terms average
EU27 chemical capacity utilisation rate
Europe is at a cost disadvantage compared to North america and the Middle East
Ethylene cash cost of regional steam crackers (2013-2023)
China grows faster than the EU27 and the US
Average production growth per annum (2013-2023, %)
