The German chemical‑pharma industry remains in a difficult situation. In the fourth quarter of 2025, the chemical sector once again saw declines in production, prices and sales, while the pharmaceutical industry provided a slight boost that helped stabilize the overall picture. The Chemical Industry Association (VCI) announced on Friday that chemical facilities were operating below the profit‑threshold capacity level and that the sector was suffering from import pressure and fierce price competition.
VCI chief executive Wolfgang Große Entrup described the year’s performance for chemistry as “underground” and said that the government’s “economic‑policy course correction”-with an applied handbrake-was deepening frustration among companies. He warned that 2026 would not be easier, that high prices and ongoing uncertainty would push many firms to their limits. Groß Entrup cautioned against a structural collapse of the industrial base without “real reform will” and a rapid pace in Berlin and Brussels.
Forecasts for 2026 remain uncertain due to the war in Iran. Production in the chemical sector was again sharply curtailed in Q4 2025, whereas the pharmaceutical industry reported a 4.5 % increase in production. Total industry revenue fell by 0.6 % in the fourth quarter compared with the previous quarter and was 2.8 % below the same period last year.
