According to the Federal Statistical Office (Destatis), higher energy prices are hitting energy-intensive industries more severely than other economic sectors, which is significantly impacting production.
From February 2022-marking the beginning of Russia’s invasion of Ukraine and the subsequent sanctions-up to March 2026, the production in these energy-intensive sectors saw a decline of 15.2%, when adjusted for seasonality and calendar effects. This rate of decrease was notably sharper than the overall industry average, which fell by 9.5% (covering both manufacturing and mining).
These sectors include the chemical industry, metal production and processing, glass/ceramics/stone processing, the paper industry, and mineral oil processing-all groups characterized by a particularly high energy requirement relative to their gross value added.
The most dramatic production decline was observed in the sector of “manufacturing glass, tableware, and ceramics and processing stones and earths” which recorded a 25.0% drop in March 2026 compared to February 2022. Within this group, the production of concrete, cement, and limestone products suffered an even greater decrease of 29.3%. Other sectors also saw marked downturns: the paper industry dropped by 18.5%, and the chemical industry fell by 18.1%. Metal production and processing experienced a decline of 12.9%. However, mineral oil processing was a significant exception; contrary to the trend in other energy-intensive sectors, its production actually grew by 24.6% compared to February 2022, following substantial increases reported since January 2026.
The decline was also mirrored in the labor market. By March 2026, 794,400 people were employed across these energy-intensive sectors, representing a 6.3% decrease compared to the 847,700 employees recorded in February 2022. The largest proportional job loss was in the paper industry, which saw 10,200 fewer jobs (-8.6%). In metallurgy, employment dropped by 16,000 jobs (-7.1%). The glass and stone sector lost 9,800 jobs (-6.4%). The chemical industry shed 18,300 jobs (-5.5%). In contrast, mineral oil processing was the only energy-intensive sector to show employment growth, adding 1,000 positions (5.8%) by March 2026, compared to February 2022.
Examining the energy supply side, in 2024, these energy-intensive industries collectively consumed 75.6% of the total energy used across the entire manufacturing sector. The chemical industry was the largest consumer, accounting for 27.9% of the total energy supply, followed by metal production and processing at 23.7%, and mineral oil processing at 10.7%. The paper industry and the glass/ceramics sector accounted for 6.7% and 6.6% of the total industrial energy consumption, respectively. For the main sources of energy in these sectors in 2024, the statistics showed natural gas contributing 26.3%, mineral oils and related products at 21.0%, coal at 18.1%, and electricity at 15.2%.