The chemical and pharmaceutical industry in Germany remains in a difficult position. In Q4 2025 the chemicals sector recorded declines in production, prices and sales, while the pharmaceutical industry added modest growth, helping to stabilize the overall picture. The Chemical Industry Association (VCI) announced on Friday that capacity utilisation of chemical plants stayed below the profitability threshold and that the sector is under import pressure and facing intense price competition.
VCI chief executive Wolfgang Große Entrup described next year’s performance as “subterranean” and said that the government’s economic policy realignment, with its handbrake engaged, would increase frustration among companies. He warned that 2026 will not be easier and that high prices coupled with persistent uncertainty will push many firms to their limits. Große Entrup cautioned that, without genuine reform will and a swift response from Berlin and Brussels, the industrial base could suffer a structural collapse.
The forecast for 2026 is uncertain due to the Iran conflict. Chemical production was again sharply throttled in Q4 2025, while pharmaceuticals registered a 4.5 % increase. Total industry sales fell 0.6 % from the prior quarter and 2.8 % below the same period a year earlier.