Executive Report
Forces Shaping Chemicals & Materials in 2026 – Reinventing Advantage in a Disrupted Industry
Chemicals & Materials
| The chemicals and materials sector enters 2026 during one of its most challenging periods in memory. Plant closures, redundancies, tariffs and record levels of product dumping throughout 2025 have highlighted deep structural imbalances ranging from chronic overcapacity to widening regional cost gaps compressing margins. |
| Concurrently, geopolitical fragmentation, energy price divergences and rising compliance requirements continue to place sustained pressure on legacy portfolios, particularly in Europe. Whilst the near-term environment remains strained with cost reduction and portfolio alignment dominating, industry’s long-term direction is unchanged. We still need to decarbonize; diversify feedstocks from virgin fossil; digitize operations exploiting AI; and secure supply-chains for critical metals, minerals plus strategic chemicals to be competitive and fit for tomorrow’s world. |
| Despite these pressures, new growth vectors are emerging. AI and agentic systems, bio based and specialty materials, advanced recycling technologies, and the realignment of global value chains are reshaping where future value will be created. These shifts form the six trends in this outlook and consider how industry leaders will need to reposition, reinvest and rebuild for the decade ahead. |
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Connect with us to explore the six trends driving 2026 and learn how to reposition, reinvest, and rebuild for what comes next.
