The European Chemical Industry Facts and Figures 2020

2020
FACTS
& FIGURES
of the European
chemical industry
Cefic Facts & Figures 2020 2
CONTENTS
Foreword 4
Profile
Profile 5 Growth and competitiveness 26
World chemical sales 6 EU chemical industry production 27
Trade
Chemical sales by country: top 10 7 EU chemical capacity utilisation rate 28
World chemical sales by region 8 Average ethylene cash costs in Europe vs North America 29
EU share of global chemicals market 9 Ethylene cash cost of regional steam crackers 30
EU chemical sales 2018 10 EU production value 31
EU chemical sales broken down by country (2018) 11
Competitiveness
EU chemical sales structure (€) 12
EU chemical sales structure (%) 13
Customer sectors of the EU chemical industry 14
Contribution
Trade development 15 Our contribution to EU industry 32
Extra-EU chemicals trade balance 16 Top 10 sectors: number of enterprises 33
Extra-EU chemicals trade flows by sector 17 Top 10 sectors: turnover 34
EU chemicals trade flows with top partners 18 Top 10 sectors: added value 35
EU chemicals trade flows with major geographic blocs 19 Top 10 sectors: number of employees 36 Energy
Extra-EU chemical trade balance 20 Top 10 sectors: labour costs per employee 37
World network of major chemicals exports flows (€) 21 Top 10 sectors: Apparent labour productivity (ALP) 38
World network of major chemicals flow (%) 22 Labour productivity in the EU chemical industry 39
World matrix: chemicals trade balance 23 Top 10 sectors: investment 40
EU chemicals exports to world 24 Top 10 sectors: Gross operating surplus 41

Spending
Chemicals exports by country of origin 2007 vs 2017 25

Environment
Profile
Energy Consumption 42 Environmental Performance 64
Total energy consumption in the EU chemical industry by source 43 Total GHG emissions in the EU chemical industry 65
Trade
Fuel and power consumption in the EU chemical industry 44 GHG emissions in the EU chemical sector 66
Gas consumption in the EU chemical industry 45 Ammonia production: Total GHG emissions 67
Electrical energy consumption in the EU chemical industry 46 Caprolactam, Glyoxal and Glyoxylic acid production:
Total GHG emissions 68
Total petroleum products consumption in the EU chemical industry 47
Nitric acid production: Total GHG emissions 69
Solid fuels consumption in the EU chemical industry 48
Competitiveness
Adipic acid production: Total GHG emissions 70
Renewable and biofuels energies in the EU chemical industry 49
Carbide production: Total GHG emissions 71
EU chemicals energy consumption: 2017 compared to 1990 50
GHG emissions and production 72
Energy intensity in the EU chemical industry 51
GHG emissions per unit of energy consumption
Energy intensity: Chemicals vs total industry 52 and per unit of production 73
Acidifying emissions in the EU chemical industry 74
Contribution
Nitrogen emissions in the EU chemical industry 75
Capital & R&I Spending 53 Non-methane volatile organic compounds emissions to air 76
Capital spending in the EU chemical industry broken

down by sub-sectors 54
Capital spending in the EU chemical industry 55
Capital spending by region 56
Capital intensity in the EU chemical industry broken
Energy
Capital spending, 2008 vs 2018 58
EU share of global chemicals investment 59
Chemicals capital spending by country, 2008 vs 2018 60
Disclaimer:
R&D spending in the EU chemical industry 61 For the sake of data integrity, figures within Cefic’s Facts & Figures publications
are compiled and updated on a regular basis from public statistical sources
Spending
R&D spending by region 62 (Eurostat, EU Commission, EEA, …).These sources regularly review their
previous years’ data and at times retroactively amend it. As a result of these
Chemicals R&I spending by country, 2008 vs 2018 63 updates, the comparison of annual Cefic Facts & Figures editions is not
necessarily consistent over time.
Environment
Foreword
The chemical industry is a valuable part of Europe’s economy.
Profile
We provide innovative solutions to delivering a low carbon and
circular economy, both within Europe and beyond its borders.
A favourable European industrial policy is needed to stimulate innovation and

investment and deliver these objectives. One that safeguards European industrial
competitiveness globally.
Trade
Ambitious trade policies are vital in this regard. In an increasingly uncertain
trade environment, free trade agreements, such as CETA and the EU-Japan
Economic Partnership Agreement, contribute to increased trade activity and
foster economic growth.
Competitiveness
Horizon Europe has the potential to revolutionise Europe into a global innovation
hub. The European chemical industry continues to innovate, with an annual
investment of €10 billion on R&I in 2018 – the highest value since 2000.
Safety remains our top priority when doing business and operating our facilities.
The European chemical industry is committed to ensuring compliance with
Contribution
REACH – the most protective chemical legislation in the world. We must continue
to strengthen and better enforce REACH and, together with the Institutions and
the Member States, ensure this legislation is properly implemented.
With the right framework conditions in the EU, our industry can play a large role in
building a better sustainable future for Europe and its people. We stand ready to
cooperate closely with the Institutions to ensure this vision is brought to reality.
Energy
Spending
Environment
Profile
Trade
Competitiveness
PROFILE 5
World chemical sales 6
Chemical sales by country: top 10 7
Contribution
World chemical sales by region 8
Unless specified, chemical industry excludes pharmaceuticals
Unless specified, EU refers to EU28
EU share of global chemicals market 9
EU chemical sales 2018 10
EU chemical sales broken down by country (2018) 11
EU chemical sales structure (€) 12
EU chemical sales structure (%) 13
Energy
Customer sectors of the EU chemical industry 14

Spending
Environment
Profile Cefic Facts & Figures 2020 6
Europe is the second largest chemicals

producer in the world
World chemical sales (2018, €3,347 billion)
Profile
Rest of Europe*
EU
129
China
565 Japan
NAFTA**
530 1,198 127 180
South Korea
Trade
24 89
Africa
India 367 Rest of Asia***
118
Latin America
Competitiveness
21
Rest of the world
Source: Cefic Chemdata International 2019
Contribution
* Rest of Europe covers Switzerland, Norway,Turkey, Russia and Ukraine
** North American Free Trade Agreement Unless specified, chemical industry excludes pharmaceuticals
*** Asia excluding China, India, Japan and South Korea Unless specified, EU refers to EU28
A look at global chemical sales over the past ten years • T

he BRIC countries (Brazil, Russia, India, and China) accounted
(2008-2018) shows: for 42.8% of global chemical sales in 2018. Nearly three
quarters of global chemical sales were attributable to BRIC,
Energy
• In 2009, China became the world’s largest chemicals producer the EU and the USA in 2018. The remaining quarter of global
for the first time, representing 23.6% of global chemical sales, chemical sales were generated mainly by emerging countries in
followed by the EU, accounting for 23.4% of global sales. China Asia, including the Middle East.
has continued to gain market share since 2009 to the detriment
of Europe.
• W
orld chemicals turnover was valued at €3,347 billion in
2018. Global sales grew by 2.5% from €3,266 billion in 2017 to
Spending
€3,347 billion in 2018. With €1,198 billion in 2018, China is still

the largest chemicals producer in the world, contributing 35.8%
of global chemical sales in 2018.
• W
ith 16.9%, the EU chemical industry ranks second in total
sales, with the United States contributing 14%. Worldwide
competition has changed significantly over the last ten years, as
emerging countries in Asia now hold the top ranking in sales.
Environment
China dominates chemical sales world ranking
Chemical sales by country: top 10
Profile
1,500
Chemical sales 2018 (€ billion)
1,400
1,300
1,198
1,200
1,100
1,000
900
800
Trade
700
600 565
500 468
400
300
180
Competitiveness
200 127 89 76 76
100 69 53
0
China EU USA Japan South India Taiwan Russia Brazil Saudi
Korea Arabia
Contribution
Source: Cefic Chemdata International 2019 Unless specified, EU refers to EU28
•
In 2018, the top 10 chemical-producing countries had a •
Two of the top 10 country sales are American producers
combined turnover of €2,901 billion, accounting for 86.7% (the USA and Brazil), generating chemical sales of €537.6 billion
of global chemical sales. (16.1%). Sales revenues in the US chemical industry grew
Energy
modestly by less than 1% in 2018 compared to 2017. Business

• S ix countries out of the top 10 biggest producers are Asian development in Brazil did not improve in 2018, with about a 2%
(China, Japan, South Korea, India, Taiwan, and Saudi Arabia), decline in sales revenue.
generating chemical sales of €1,886 billion – 51.5% of the
world market. China’s sales levels are higher than the EU •
The world landscape of the chemical industry is changing
and US markets combined (€1,198 billion compared to rapidly. China is taking its chemical industry to the next stage
€565 bn + €468 bn). of development and is looking to move from “following
the lead” to “taking the lead” and from a “big country” to
Spending
•
Two of the top 10 are European producers (EU28 + Russia), a “great power” of the petroleum and chemical industry,
generating sales revenue of €640.5 billion (19.1%). European leading in technology innovation and trade, and prevailing
chemical sales grew by 2.8% from 2017 to 2018. Sales revenues in international markets.
increased in most countries in Europe in 2018.
Environment
EU market share drops significantly

as emerging markets surge
World chemical sales by region
40
Share (%)
35,8
Profile
35
30
26,5
25
21,8
20 18,2
16,9
15,8
Trade
15
11,0
9,5
10
7,0
5,4
5 3,1 3,8 2,3 2,7
Competitiveness
0
EU NAFTA* Japan South Korea India Rest of Asia** China
World chemical sales 2008 (€1,998 billion)

World chemical sales 2018 (€3,347 billion)
Contribution
* North American Free Trade Agreement Unless specified, chemical industry excludes pharmaceuticals
** Asia excluding China, India, Japan and South Korea Unless specified, EU refers to EU28
•
China’s share of world chemicals market sales in 2018 •
The European chemical industry is still a world leader and a
swelled to 35.8%, up from 18.2% reported in 2008. highly innovative sector. With 90% of GDP growth taking place
The EU contribution to world chemical sales dropped from outside Europe in the coming decades, the challenge is to
Energy
26.5% in 2008 to 16.9% in 2018. The EU gradually lost its top stay competitive. Taking advantage of emerging market
spot in world chemical sales to China and the rest of Asia opportunities will require EU leadership in creating attractive
(excluding Japan). framework conditions that enhance the global position of
European chemicals.
•
The results also show a decreasing share of chemical sales
for industrial regions (NAFTA and Japan) over the past ten
years. NAFTA’s share of global sales went down from 21.8%
in 2008 to 15.8% in 2018. There is a less spectacular result for
Spending
Japan, where market share decreased from 7 % to 5.4% in the

same period.
Environment
World market share of EU chemical sales drops by half
EU share of global chemicals market
Profile
600 35
EU chemical sales (€ billion)
World share (%)

33% 557 565
552 548 552
524 530 537 534
505 514
500 498 30
418
421 25
400
361
20
Trade
300
17% 15
200
10
100
Competitiveness
5
0 0
1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EU chemical sales (€ billion)

World share (%)
Contribution
•
Global chemical sales are three times bigger in 2018 than •
Overall growth of chemicals demand and production, as well
twenty years ago. Global chemical sales have been growing as faster growth in emerging regions, is a continuing future
consistently since 1998, expanding three times in value in 2018 trend. Growth in Europe remains low, mainly due to mature
Energy
(€1,097 billion vs €3,347 billion) markets and an ageing population, while the EU’s trade surplus
remains high. Other structural factors will deeply affect
•
In 1998, the EU reported sales of €361 billion, making up 32.9% the development of the chemicals business in the coming
of world chemical sales in value terms. In 2018, sales values years such as immigration, digitalisation, populism, among
in the EU area regained 56% of their original value in 1998. others.
As a consequence of steep global chemicals market growth,
the relative share of the EU chemicals market nearly halved in •
Besides increased competition from other regions, there
20 years, dropping from 32.9% to 16.9%. are other potential reasons for this relative decline, including
Spending
comparably high energy prices, lagging innovation, currency

•
This trend is expected to continue in the future. Data analysis appreciation, high labour costs, and regulatory and tax burdens.
shows strong chemicals demand growth in China, and other Sector research and development (R&D) intensity, energy
emerging countries and low growth in Europe and North prices and the exchange rate have strong quantitative links to
America, where Europe sells most of its chemicals. competitiveness.
Environment
Base chemicals account for 60% of EU chemical sales
EU chemical sales 2018 (€565 billion)
Profile
Consumer chemicals 12.4% Petrochemicals 25.4%
Basic inorganics 13.7%

Other inorganics
€565 billion
Trade
Auxiliaries Industrial gases
for industry 14.6%
Fertilizers
Specialty chemicals 27.2% Polymers 21.3%

Paints & inks Plastics
Competitiveness
Crop protection Synthetic rubber
Dyes & pigments Man-made fibres
Contribution
•
Output from the EU chemical industry covers three broad •
Specialty chemicals cover areas such as paints and inks,
product areas: base chemicals, specialty chemicals and crop protection, dyes and pigments, and auxiliaries for industry
consumer chemicals. Base chemicals, also known as commodity (other chemicals such as glues, essential oils and gelatine).
Energy
chemicals, cover petrochemicals and their derivatives Specialty chemicals are produced in small volumes, but they
(polymers) along with basic inorganics. They are produced nevertheless represented 27.2% of total EU chemical sales
in large volumes and sold in the chemical industry itself or to in 2018.
other industries.
•
Consumer chemicals are sold to final consumers, such as
•
Base chemicals represented 60.4% of total EU chemical sales soaps and detergents as well as perfumes and cosmetics.
in 2018. The inorganic basic chemicals sub-sector includes They represented 12.4% of total EU chemical sales in 2018.
production of chemical elements, inorganic acids such as Petrochemicals and specialty chemicals accounted for the
Spending
sulphuric acid, bases such as caustic soda, alkalis and other majority – 52.6% – of EU chemical sales that year.
inorganic compounds such as chlorine. The petrochemicals
sub-sector covers manufacturing of chemicals using basic
processes, such as thermal cracking and distillation. Polymers in
primary forms is, in most cases, integrated into petrochemicals
sites. Plastics in primary forms embrace the manufacture of
resins, plastic materials and elastomers.
Environment
More than 60% of EU chemical sales generated

in four EU Member States
EU chemical sales broken down by country (2018)
Profile
Others
16.4%
UK
6.1% DE
31.8%
BE
6.8%
€565 billion
Trade
ES
7.4%
NL
8.7%
IT FR
Competitiveness
9.4% 13.4%
Contribution
•
Germany and France are the two largest chemicals producers •
UK chemical sales reached, on average, €38.6 billion
in Europe, followed by Italy and the Netherlands. These four (2010-2018); EU27 chemicals exports to the UK reached
countries accounted for 63.3% of EU chemical sales in 2018, €23.4 billion, while imports from the UK totalled €20.3 billion.
Energy
valued at €357.7 billion. The share rises to 83.6%, or €472.1 The UK accounts for 7.2% of EU28 chemical sales, and more
billion, when including Spain, Belgium, and the United Kingdom. than half of UK chemicals production is exported to the
The remaining EU Member States accounted for 16.4% of EU EU27 area (52.5%). The UK’s decision to exit the EU presents
chemical sales in 2018, to which Poland and Austria are the a political and economic challenge that creates significant
two largest contributors. uncertainty for companies and their employees.
Spending
Environment
EU chemical sales reach highest level since 2008
EU chemical sales structure (€ billion)
Profile
600 565
Chemical sales (€ billion)
552 557 548 552

530 537 534
498 514
500 133
109 143 139 138 162
418 146 155
123 146
400
Trade
103
300 243 272 275 275 278
241 283 306 331
204 282
200
Competitiveness
100 179
133 147 138 135 121
111 105 86 91 73
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Home sales Intra-EU exports Extra-EU exports
Contribution
•
Total sales in 2018 were the highest since 2008. Total sales of Removing both trade and non-trade barriers inside the
the EU chemical sector cover three categories: home sales, European Union with the single market helped boost growth
intra-EU sales and extra-EU sales (or exports). The chart and competitiveness in the EU chemical industry, increasing the
Energy
illustrates the dramatic decline in EU chemical total sales levels number of chemical transport operations across EU borders.
during the 2009 economic downturn. The chemical sector has
been on a gradual upturn since 2010. Intra-EU sales (marked as “intra-EU exports” on the graph)
climbed from €243 in 2008 to €331 in 2018.
•
Home sales lost about 60% of their original value in ten years.
Home sales represent chemicals revenue generated by EU • E xtra-EU sales increased by nearly half of their value in ten
chemicals companies from selling into their home country years. The European chemical industry is an exporting industry,
market (e.g. French companies selling their chemical products with 29% of its production outside the EU. During the period
Spending
in France). From 2008 to 2018, EU home sales decreased on 2008 to 2018, EU chemical exports outside the EU single
average by 8.6% per annum; home sales went down from market increased on average by 4.1% per annum. Extra-EU
€178 billion in 2008 to €73 billion in 2018. sales (exports) in 2018 regained about half of their original value
registered in 2008. The chemical industry must continue to be
•
Intra-EU sales extended 36% of their value in ten years. globally competitive to sustain its existing capacity and grow in
Intra-EU sales cover revenue generated by EU chemicals line with global demand.
companies from selling in the EU single market but not into
their home country market, (e.g. French companies selling their
Environment
chemicals products in Belgium or Germany).

More than €160 billion is generated from

selling chemicals outside the EU area
EU chemical sales structure (%)
2008 2018
Profile
13%
20%
29%
34%
€530 billion €565 billion
Trade
46% 58%
Competitiveness
Home sales Intra-EU exports Extra-EU exports
Contribution
•
Home Sales: In 2018, 13% of chemical sales revenue was
generated from selling in the EU country home market. Energy
• Intra-EU Sales: While “home sales” are declining, the

importance of intra-EU sales is increasing. By 2018, intra-EU
sales – excluding domestic receipts – accounted for 58% of total
EU chemical sales, up from 46% in 2008. From 2008 to 2018,
EU intra-EU sales increased on average by 3.1% per annum.
•
Extra-EU Exports: In 2018, 29% of chemical sales revenue
was generated from selling in the non-EU chemical market
Spending
(exports), up from 20% in 2008. The three primary markets for

EU chemical exports are Asia, the neighbouring EU countries,
and the NAFTA trade bloc.
Environment
More than half of EU chemicals are supplied

to the industrial sector
Customer sectors of the EU chemical industry (2017)
Wholesales
& retail trade;
Profile
Agriculture, repairs
hunting,
forestry 8.0% 4.0% R&D and other
and fishing business activities
3.2%
Other 3.3% Mining and utilities

44.4%
Trade
Health 16.8% 9.2%
and social Services
work
Competitiveness
Rubber and plastics products 15.5% Computer, Electronic and optical equipment 2.4%
Construction 5.1% Fabricated metal products 2.4%
Pulp, paper, paper products, printing and publishing 4.3% Electrical machinery and apparatus, nec 2.2%
Coke, refined petroleum products and nuclear fuel 3.6% Other non-metallic mineral products 2.0%
Textiles, textile products, leather and footwear 3.5% Machinery and equipment, nec 1.8%
Food products, beverages and tobacco 3.3% Manufacturing nec; recycling 1.7%
Motor vehicles, trailers and semi-trailers 3.0% Other manufacturing 2.2%
Basic metals 2.6%
Contribution
Sources: ICCA report 2019, Catalyzing Growth and Addressing Our World’s Unless specified, chemical industry excludes pharmaceuticals
Sustainability Challenges (Oxford Economics) Unless specified, EU refers to EU28
•
The European chemical industry is a key pillar for a sustainable •
More than half of the EU chemicals sold to downstream
society, providing employment to 1.2 million people in Europe users go to other industrial sectors, according to a recent
and acting as a solution provider to other sectors of the Oxford Economics study (March 2019)1. Beyond chemical
Energy
economy, for all of the sustainable development challenges such manufacturers, the biggest industrial users of chemicals
as energy and climate, transport, health, food, hygiene, housing, are the rubber & plastics, textiles, construction, computer
among others. production, and pulp & paper sectors. Overall, 56% of EU
chemicals sold to downstream users go to other industrial
•
The chemical industry supplies almost all sectors of the sectors. The remainder goes to other branches of the global
economy, and its strategies directly impact downstream economy such as health and social work, agriculture, and
chemicals users. Chemical manufacturers not only transform services.
raw materials into final products for every day consumption but
Spending
also provide inputs to a broad range of sectors, from agriculture

to transportation.
Environment
1
“Catalyzing Growth and Addressing Our World’s Sustainability Challenges, ICCA report, March 2019”
Profile
Trade
Competitiveness
TRADE
DEVELOPMENT 15
Extra-EU chemicals trade balance 16
Contribution
Extra-EU chemicals trade flows by sector 17
EU chemicals trade flows with top partners 18
EU chemicals trade flows with major geographic blocs 19
Extra-EU chemicals trade balance 20
World network of major chemicals exports flows (€) 21
World network of major chemicals flow (%) 22
Energy
World matrix: chemicals trade balance 23

EU chemicals exports to world 24
Chemicals exports by country of origin 25
Spending
Environment
Trade development Cefic Facts & Figures 2020 16
EU chemicals trade surplus reaches significant level
Extra-EU chemicals trade balance
Profile
200
€ billion
180
160
140
120
Trade
100
80
60 47,8 48,2 47,3 48,4

41,8 42,8 39,8 43,3 44,2 45,2
40 30
Competitiveness
20
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Extra-EU trade balance

� Extra-EU exports
� Extra-EU imports
Contribution
•
Trading chemicals around the world stimulates competition, •
Open competition and open markets would help generate
provides incentive to develop new markets through innovation more trade and benefits for all partners and citizens. Trade
and stimulates production efficiency. Above all, it helps to agreements with key partners will enable our industry to
Energy
improve the quality of human life. enhance efficiency and better use our technical strengths.
•
A historically important player in the global chemical market,
the EU chemical industry continues to benefit from trade
opportunities. Both chemical exports and imports recorded
an increase in 2018 compared to 2017.
•
This analysis shows that in 2018, imports grew faster than
Spending
exports. With 9.1%, import growth was far above the long-
term average growth (4%). By contrast, export growth was
close to the long-term average (4.1%). The EU chemicals trade
surplus outside the European Union reached €45.2 billion in
2018, down by €3.2 billion compared to 2017.
Environment
EU records trade surplus for most chemical sectors
Extra-EU chemicals trade flows by sector (€ billion)
Extra-EU exports 2018 Extra-EU imports 2018
Profile
7%
16%
34% 7%
€161.7 billion 12%
Trade
36%
€116.5 billion
18%
20%
25%
25%
Competitiveness
Specialties
Petrochemicals Consumer chemicals
Polymers Basic inorganics
Contribution
•
EU chemical industry exports reached €161.7 billion in •
The EU chemical sector generated a trade surplus of
2018. Specialty chemicals is the largest exporting sector, €45.2 billion in 2018. Trade analysis indicates that the EU
accounting for one third of total EU chemical exports in 2018. chemical sector recorded a trade surplus in 2018 for specialty
Energy
Petrochemicals was the second largest exporting sector, chemicals, consumer chemicals, polymers and petrochemicals;
contributing 25% of total EU chemical exports, followed by the however, basic inorganics experienced a trade deficit in the
polymer sector, contributing 18% of total chemical exports. same year.
Consumer chemicals contributed 16% of total exports, and
with 7%, basic inorganics was the smallest exporting sector. •
The chemical industry depends on free trade and
open markets, both for its raw materials and as outlets
•
EU chemical imports from the non-EU area reached for its products. The industry relies increasingly on tightly
€116.5 billion in 2018. Petrochemicals was the largest chemicals interconnected clusters that participate in global value chains.
Spending
importer in 2018 (36%), followed by specialty chemicals

and polymers, contributing 25% and 20% respectively. Basic
inorganics accounted for 12% of total imports and, with 7%,
consumer chemicals was the smallest importing sector.
Environment
Top 10 EU partners account for 70% of EU chemicals trade*
EU chemicals trade* flows with top partners (2018)
Profile
Russia
Switzerland 6.1%
Turkey Japan
20.2% 6.9%
4.4%
China
4.3%
Trade
USA 11% 3.7%
South Korea
6.6%
Middle East
3.4%
India
2.3%
Competitiveness
Brazil
EU trade surplus
EU trade deficit
Contribution
Source: Cefic Chemdata International 2019 Unless specified, chemical industry excludes pharmaceuticals
* Trade = exports + imports Unless specified, EU refers to EU28
•
Extra-EU chemicals trade flow, calculated as total exports plus •
Today, China is the EU’s second largest chemicals trading
imports, was valued at nearly €278.3 billion in 2018. The top 10 partner, accounting for 11% of EU chemicals trade. China has
EU partners accounted for nearly 70% of extra-EU chemicals become the most important growth market for global chemical
Energy
trade in the same year. companies and a major investment location. While Chinese
chemical companies are gradually increasing their focus on
•
The US was the EU’s biggest trading partner in chemicals in specialty chemicals, the country will remain a major importer
2018. It bought €31.8 billion of EU exports, whilst providing of commodity chemicals for some time to come. Chinese
€24.4 billion of EU imports, and contributed 20.2% of total EU expansion does not necessarily imply Europe loses out; rather,
chemicals trade in 2018. Transatlantic trade flows are expected there are wins for both, and China offers many opportunities.
to change considerably in the next five years because the
US shale gas boom has triggered a massive build-up of new
Spending
chemicals production capacity.

Environment
EU trade surplus with top competing markets
EU chemicals trade flows with major geographic blocs
Profile
Rest of Europe*
37.2 39.3
China Japan
26.6 27.3 14.8
Trade
5.1
NAFTA** 15.7 6.7
12.1
4.2
Africa Rest of Asia***
9.9 Rest of 37.5
the world
Competitiveness
4.7
Latin America
5.4
28.8
2.5
Extra-EU exports 2018 (€161.7 billion)

Extra-EU imports 2018 (€116.5 billion)
Contribution
A look at the 2018 EU chemicals trade balance with key countries •

The EU generated a chemicals trade surplus of €7.5 billion
and regions shows: with the United States. Petrochemicals contributed to three
quarters of the total EU chemicals surplus with the USA. This
Energy
•
Apart from China and Japan, the European Union has a sector is sensitive to US shale gas development. The USA is the
trade surplus with all main trading regions – NAFTA, Asia, world’s biggest producer of bioethanol, making around 54% of
Latin America, Africa, and non-EU Europe. The two major world production in 2013.
geographic blocs trading with the European Union in 2018
have remained North America and the rest of Europe. •
The EU had a chemicals trade deficit with India, mainly
reflecting the deficit that occurred in petrochemicals
•
The European Union generated its largest chemicals trade (€1.7 billion). India is the world’s second largest emerging
surplus with the rest of Europe, which covers Turkey, market, and the EU is playing a key role in this transformation
Spending
Switzerland, Russia, Norway and Ukraine. The EU surplus as India’s greatest source of foreign direct investment.
with the rest of Europe amounted to €12 billion in 2018,
to which specialty chemicals and consumer chemicals •
The EU had a chemicals trade deficit with Japan, mainly due
contributed significantly. to the deficit occurring in polymers (€1.1 billion) and specialty
chemicals (€0.9 billion). The EU also had a chemicals trade
deficit with South Korea, due to the deficit that appeared in
polymers (€2.5 billion).
Environment
Specialty and consumer chemicals contribute the most

to EU chemicals trade surplus
Extra-EU chemicals trade balance (€ billion)
Profile
Extra-EU chemicals trade balance (€ billion)
50
45
40
35
30
25
Trade
20
15
10
5
0
Competitiveness
-5
-10
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Consumer chemicals Specialty chemicals Polymers

Petrochemicals Basic inorganics
Contribution
•
The EU chemicals trade surplus in 2018 reached €45.2 billion,
55.8% of which came from specialty chemicals. Specialty
chemicals generated the largest EU trade surplus compared
Energy
to the other chemical sectors. Consumer chemicals has the

second strongest external trade performance, followed
by polymers.
•
Petrochemicals registered in 2018 a trade deficit of €1.5 billion
after two consecutive years of trade surplus in 2016 and 2017.
Basic inorganics experienced a trade deficit of €2.7 billion
in 2018.
Spending
Environment
The EU is the largest chemicals exporting

region in the world
World network of major chemicals exports flows (2017, € billion)
Rest
Rest of United of Middle Latin
Profile
EU Asia* States China Japan Europe** East America Africa Oceania World
EU 37,9 30,0 15,2 5,2 29,0 11,2 9,5 12,1 2,3 158,3
Rest of Asia *
18,2 9,3 60,4 8,8 2,1 7,2 4,2 4,9 3,0 122,3
United States 21,3 17,1 12,0 7,0 1,3 2,7 13,8 1,8 2,0 120,2
China 13,6 47,9 10,9 6,9 2,8 3,9 7,5 5,0 2,6 103,3
Japan 5,8 28,4 6,1 16,3 0,3 0,5 0,6 0,3 0,4 59,3
Trade
Rest of Europe **
19,1 7,0 2,4 2,4 0,5 0,7 2,5 0,6 0,1 35,8
Middle East 5,3 12,3 1,4 12,4 0,3 0,5 1,4 1,5 0,4 35,6
Latin America 3,3 1,4 3,9 1,0 0,5 0,1 0,1 0,2 0,0 11,7
Africa 4,8 2,8 0,7 0,6 0,1 0,2 0,7 1,0 0,1 10,9
Oceania 0,3 1,3 0,4 0,4 0,3 0,0 0,1 1,0 0,0 3,1
Competitiveness
World 93,7 157,9 86,8 122,3 29,8 36,4 27,3 41,3 26,7 11,0 689,1

* Asia excluding China, Japan and Middle East Unless specified, chemical industry excludes pharmaceuticals
** Europe excluding EU; it covers Russia, Norway,Turkey, Switzerland and Ukraine Unless specified, EU refers to EU28
Contribution
•
This brief overview of world chemicals trade flows uses a trade Compared to the other trading regions, the EU is also the
matrix, where the world is divided into 10 geographical regions: largest chemicals exporting region in the world, accounting for
the EU, the USA, China, Middle East, Japan, rest of Europe, rest 43% of world chemicals exports. EU intra-trade is by far the
of Asia, Latin America, Africa and Oceania. Countries of “rest largest intra-regional trade in the world.
of Europe” are mainly Switzerland, Russia, Norway, Turkey and
Ukraine. The main countries in “rest of Asia” are South Korea, The analysis of the major chemicals exports flows between the
India and other emerging countries in Asia (China, Japan and main regions shows the following results:
Middle East are excluded).
Energy
•
The EU is the largest chemicals exporting region in the
•
Trade Matrix: The matrix has been put together from export world: EU chemicals exports to the rest of the world (intra-EU
data in the chemical sector (Nace 20). Exporting regions trade excluded) amounted to €158.3 billion in 2017. The EU
are presented in rows and importing regions are presented area accounts for 23% of world chemicals exports. China is the
in columns. The intercept of row ‘i” and column “j” means fourth largest destination for EU chemicals exports, followed by
exports from region “i” to region “j”. The main diagonal of the Japan, rest of Europe, Middle East and Latin America. The top
matrix (shaded cells) represents intra-region trade (e.g. exports four largest chemicals exporting regions in the world are the
from EU countries to EU countries). For the purpose of trade EU, Rest of Asia*, the USA and China.
Spending
performance analysis, intra-trade flows are excluded from the

present section. •
The EU is the third largest chemicals importing region in
the world: EU chemicals imports from the rest of the world
•
Intra-Trade: It is commonly known that trade between excluding intra-EU imports were valued at €93.7 billion in 2017.
contiguous regions is significant (e.g. intra-EU trade); it reflects The EU area contributed 13.6% of world chemicals imports.
factors such as distance between trading partners, transport The four main import origin markets of the EU area are the
costs, and the existence of common borders. Proximity of USA, rest of Europe, rest of Asia* and China.
the markets is a key factor stimulating intra-trade. Our trade
analysis (including intra-trade) shows that chemicals trade within
Environment
the EU internal market is significant, since 28% of total world

chemicals trade takes place between EU countries.
The EU area is the largest destination market

for US chemicals exports
World network of major chemicals exports flows (2017, top 5, %)
Profile
Largest Second largest Third largest Fourth largest Fifth largest Top 5
exporting exporting exporting exporting exporting
market market market market market
EU Rest of Asia* United States Rest of Europe** China Africa 78.5%
Rest of Asia* China EU United States Japan Middle East 85.0%
United States EU Rest of Asia *
Latin America China Japan 59.1%
China Rest of Asia *
EU United States Latin America Japan 83.9%
Trade
Japan Rest of Asia *
China United States EU Latin America 96.7%
Rest of Europe **
EU Rest of Asia *
Latin America United States China 93.3%
Middle East China Rest of Asia* EU Africa United States 88.3%
Latin America United States EU Rest of Asia* China Japan 86.7%
Competitiveness
Africa EU Rest of Asia* United States Middle East China 87.6%
Oceania Rest of Asia *
United States China EU Japan 90.8%
World Rest of Asia *
China EU United States Latin America 72.9%
Contribution
The summary results of the top five chemicals export markets •

The EU area is the second largest destination for Chinese
for the 10 geographical regions selected in the previous table are exports: Trade between China and its neighbours is very
(data 2017): significant. As might be expected, the rest of Asia* market is
Energy
by far the largest destination for Chinese chemical exports

•
The EU area is the largest destination market for US (46%). The EU market area is the second largest destination for
exports: Nearly 18% of US chemicals exports are sold in the Chinese chemicals exports. 13% of Chinese chemicals exports
EU chemicals market. Rest of Asia (Japan, China and Middle are sold in the EU area, meaning the EU chemical market is
East excluded) and Latin America are respectively the second the most important market for China after the Asian market.
and third largest exporting markets for the US chemical sector. The USA is the third main destination for Chinese chemicals
China is the fourth largest destination for US chemicals exports, exports, accounting for about 11% of total exports of China.
accounting for nearly 10% of total. The USA contributes nearly China accounts for 15% of world chemicals exports.
Spending
18% of world chemicals exports.

Environment
The EU has the largest chemicals surplus in the world
World matrix: chemicals trade balance (2017)
Partner
Profile

Rest
Declarant Rest of United Middle of Latin
EU Asia* States China East Japan Europe** America Africa Oceania World

EU
Rest of Asia*
United States
China
Trade
Middle East
Japan
Rest of Europe**
Latin America
Africa
Competitiveness
Oceania
World
Trade deficit
Trade surplus
Contribution
•
Following is a brief analysis of the chemicals trade balance using •
The US chemical sector generates the second largest
the trade matrix (data 2017). The chemicals trade balance is trade surplus in the world: Four regions have performed well
calculated for each region as total exports minus imports. Intra- (export value higher than import value). Comparing the total
Energy
trade is of course excluded. chemicals trade balance for all regions, the analysis shows that
only four regions generated a chemicals surplus with the world
A look at the chemicals trade performance of each region shows in 2017: the EU, the USA, Japan and Middle East. These regions
the following: performed well, since they have generated a net exports value.
•
The EU area has by far the largest chemicals surplus in •
The “rest of Asia” has by far the largest chemicals deficit
the world: The European Union is the only region to have in the world: The analysis reveals that six regions have a trade
a trade surplus with all trading regions. The top five largest deficit (export value lower than import value): rest of Asia,
Spending
chemicals surpluses are generated for the EU by trading with China, Latin America, Africa, Oceania and rest of Europe. The
rest of Asia, rest of Europe, the USA, Africa, and Latin America. largest trade deficits are generated by rest of Asia. China and
12.1% was generated by trading with Middle East and Oceania. Oceania generated respectively a trade deficit of €19 billion and
Trading with China is generating a small surplus for the EU €7.9 billion.
area. The EU area has by far the largest chemicals surplus in the
world, followed by the USA.
Environment
Growing EU chemicals exports
EU chemicals exports to world (€ billion, intra-EU trade excluded)
25
Profile
175
(%)
(€ billion)
22.4%
150 158
20
139 138 135 143 143 20%
125 131
120
100 15
107 110
Trade
97 100
75 87
80 10
50
5
25
Competitiveness
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
World exports market share (%)

EU exports values to the world (intra-EU exports excluded, € billion)
Contribution
A look at EU chemicals exports during the years 2004-2017 shows •

EU export values show a positive and encouraging trend;
the following results: however, the EU’s world exports market share decreased
from 22.4% in 2004 to about 20.5% in 2017. The decline in
Energy
•
World exports grew 6.1% per annum from 2004 to 2017. EU exports competitiveness is in line with the falling EU sales
World exports amounted to €772.5 billion in 2017, up from market share.
€357.2 billion in 2004 (more than doubling in thirteen years).
•
EU chemicals exports grew 5.4% per annum on average.
Exports reported a substantial increase from €80.1 billion in
2004 to €158.3 billion in 2017. Exports in value terms rose
significantly; at 98% higher in 2017 compared to 2004.
Spending
Environment
Decreasing share of chemicals exports

for the EU, USA and Japan
Chemicals exports by country of origin
2007 (% of total) 2017 (% of total)
Profile
20.5%
36.6%
23.0%
35.9%
€463 billion €772 billion
Trade
1.4% 18.4% 15.6%
1.8% 8.0%
2.2% 2.3%
9.5%
1.2%
Competitiveness
2.8% 13.4%
7.7%
EU Saudi Arabia
USA India
China Brazil
Japan ROW*
Contribution
Source: Cefic Chemdata International 2019 Unless specified, chemical industry excludes pharmaceuticals
* Rest of the World, intra-EU trade excluded Unless specified, EU refers to EU28
•
World exports reached the value of €772.5 billion in 2017,
up by 67% from €463.5 billion ten years ago. Energy
•
Europe is not the only region losing its export share; other
industrial regions are experiencing similar effects. The US
export market share went down from 18.4% in 2007 to 15.6%
in 2017, while Japan’s export market share declined from 9.5%
to 7.7% during the same period of comparison.
•
Emerging countries such as China and India have benefited
more than industrial countries. Export values have increased
Spending
substantially in China (2.8 times bigger in value in 2017

compared to 10 years ago), and India (2.2 times higher during
the same period). The export market share of China nearly
tripled in 10 years – from 8% in 2007 to 13.4% in 2017.
Environment
Profile
Trade
Competitiveness
GROWTH AND
COMPETITIVENESS 26
EU chemical industry production 27
Contribution
EU chemical capacity utilisation rate 28
Average ethylene cash costs in Europe vs North America 29
Ethylene cash cost of regional steam crackers 30
EU production value 31
Energy
Spending
Environment
EU chemicals maintains steadily growth
EU chemical industry production
Profile
115 20
Production index (2015 = 100)
Production % change (y-o-y)

Jan-June 2019, % change (y-o-y)
-0.4
110 15
104.8 101.2
10
105
5
100
0
Trade
95
-5
90
-10
88.4
85 -15
Competitiveness
80 -20
75 -25
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2019
Production index (2015=100), Left Hand Side (LHS)

Production % change (y-o-y), Right Hand Side (RHS)
Contribution
•
The European chemical industry is facing much uncertainty, •
Total manufacturing output in Europe is slowing down,
which continues to dominate the economic and business especially in the automotive industry and in durable consumer
environment. The short-term outlook is unfavourable, goods like electrical appliances. Domestic demand for
Energy
and leading indicators do not point to a recovery in the non-durable consumer goods, such as food and beverages,
coming months. is growing overall, reflecting rising private incomes in the
European economy. The construction industry, benefitting from
•
Overall, EU chemical production was slightly negative in the low interest rates, high demand for additional housing and the
first half of 2019. Total sales (domestic sales and exports) were need to refurbish the existing building stock, is also expanding;
at the previous year’s level. Exports outside the EU area were however, dynamics seem to be losing some steam here as well.
slightly above the same period of last year. Export demand
from non-European countries in the chemical industry is
Spending
weaker than in the preceding year, and does not compensate

for lower internal demand. Imports were far above the first
half of 2018.
Environment
EU capacity utilisation is slightly above its long-term average
EU chemical capacity utilisation rate (%)
Profile
85
Capacity utilisation in %
81.5%
80
Trade
75
70
Competitiveness
65
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
2/0
2/0
2/0
2/0
2/0
2/0
2/0
2/0
2/0
2/1
2/1
2/1
2/1
2/1
2/1
2/1
2/1
2/1
2/1
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
� Long term average level (1995-2018)
� Capacity utilisation in %
Contribution
Source: European Commission and Cefic analysis 2019 Unless specified, EU refers to EU28
•
Capacity utilisation was down 0.5% (Q2-2019). According to
EU Commission Business Survey data, capacity utilisation in the
EU chemical sector reached the value of 82.1% in the second
Energy
quarter of 2019, down from 82.5% reached in the first quarter

of the same year.
•
Capacity utilisation was 1.8% below the previous year’s level
(Q2-2019 vs Q2-2018), but is still slightly above the long-term
average (2005-2018).
Spending
Environment
Energy costs are the Achilles’ heel of European industry
Average ethylene cash costs in Europe vs North America (US$/ton)
Profile
1,300
Ethylene Cash Cost (US$/ton)
1,200
1,100
1,000
900
800
698
700
Trade
600
500
400
300
Competitiveness
379
200
100
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
� Europe
� North America
Contribution
Source: ICIS and Cefic analysis 2019 Unless specified, EU refers to EU28
•
Competing globally, the chemical industry is energy intensive. •
Energy costs are the Achilles’ heel of European industry,
Increases in energy costs in Europe relative to our competitors especially compared to the United States which is riding on a
might impact competitiveness. shale gas boom. Advantageous energy and feedstock prices are
Energy
a clear enabler of competitiveness. The shale gas boom in the

•
Globally, ethylene is the highest volume building block in the United States has greatly reduced energy and feedstock costs,
chemical industry. It is the basic feedstock for the production of and a clear indicator of this situation is the cost of producing
plastics, detergents and coatings, amongst many other materials. ethylene.
Spending
Environment
Europe at a competitive disadvantage compared

to the USA and the Middle East
Ethylene cash cost of regional steam crackers
1,400
US$/tonne C2
Profile
1,200
1,000
800
Trade
600
400
Competitiveness
200
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Europe North America Middle East
Contribution
Source: ICIS Unless specified, EU refers to EU28
•
In 2018, ethylene cash cost in Europe was about 40% above •
The cost difference between Middle East and Europe
the previous years’ level. 2018 shows a significant increase of diminished considerably from 2014 to 2017. Producing ethylene
the ethylene cash cost in Europe compared to 2017. A less in Europe was 3.7 times more expensive in 2014 compared to
Energy
substantial increase of 20% was observed in the USA during Middle East. 2017 showed better results for Europe, falling to
the same period. 1.9 times more expensive.
•
Making ethylene in Europe was three times more expensive •
However, 2018 showed less competitive results compared to
than in the US in 2013 (due to the shale gas boom). Europe’s 2017, but still close to the long-term average. The global picture
competitive disadvantage vis-à-vis its rivals was reduced from for 2018 carried a clear message: Europe still has a competitive
2013 to 2017. disadvantage compared to the USA and the Middle East.
Europe generated the highest ethylene cash cost in 2018.
Spending
•
The cost difference between the USA and Europe diminished
significantly from 2014 to 2017. Making ethylene in Europe was
2.7 times more expensive in 2014. Since then, the situation
gradually improved until 2017 (2.2 times in 2015, 1.8 times in
2016, and 1.6 times in 2017).
Environment
Europe leads in specialty chemicals
EU production value (real 2010, € billion)
Profile
600
€ billion (real 2010)
450
Trade
300
150
Competitiveness
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
� Pharmaceuticals
� Specialty chemicals
� Base chemicals
Contribution
Source: Prognos model results and Cefic analysis 2019 Unless specified, EU refers to EU28
•
On a segment level, the chemical industry in Europe is
characterised by high market share in specialty chemicals
and pharma ingredients, which is expected to continue
Energy
to grow in the future. Future growth will be driven by

innovation and diversification in materials and components
across the manufacturing and construction sectors, as well as
consumer goods.
•
The speed of innovation and transformation is expected to
pick up due to the introduction of Industry 4.0 technologies.
Spending
Environment
Profile
Trade
Competitiveness
OUR CONTRIBUTION
TO EU INDUSTRY 32
Top 10 sectors: number of enterprises 33
Contribution
Top 10 sectors: turnover 34
Top 10 sectors: added value 35
Top 10 sectors: number of employees 36
Top 10 sectors: labour costs per employee 37
Top 10 sectors: Apparent labour productivity 38
Labour productivity in the EU chemical industry 39
Energy
Top 10 sectors: investment 40

Top 10 sectors: gross operating surplus 41
Spending
Environment
Our contribution to EU industry Cefic Facts & Figures 2020 33
Top 10 sectors account for 82%

of total EU manufacturing enterprises*
Top 10 sectors: number of enterprises (%)
Profile
18.3
18.2
4.3
4.5 2.097million 12.7
Trade
5.7
5.7 9.5
5.7 8.1
7.2
Competitiveness
Fabricated metal Other manufacturing Other non-metallic mineral products
Food products Wearing Machinery & equipment
Repair of machinery & equipment Furniture Others
Wood Printing
Contribution
Source: Eurostat SBS Data 2015 and Cefic analysis 2019 Unless specified, chemical industry excludes pharmaceuticals
* Eurostat code,V11110 Unless specified, EU refers to EU28
•
There are 2.1 million enterprises in the EU manufacturing •
10 sectors account for 82% of total EU manufacturing
sector. Fabricated metal products is the largest sector, enterprises. There are 28,000 companies operating in
accounting for 18.3% of all enterprises operating in the EU the EU chemical sector, accounting for 1.4% of the total number
Energy
manufacturing industry, followed by the food industry (12.7%). of enterprises in the EU manufacturing sector (see Eurostat
code, V11110).
Spending
Environment
Chemicals is the fourth largest producer*

in EU manufacturing
Top 10 sectors: turnover (€ billion)
Profile
1,032
1,953
957
€7,320 billion
Trade
299
657
303
310
350 553
423 481
Competitiveness
Automotive Fabricated metal Electrical equipment
Food products Refined petroleum products Computer & electronic
Machinery & equipment Basic metals Others
Chemicals Rubber & platics
Contribution
•
Turnover comprises the totals invoiced by the unit during the •
10 sectors account for 73% of EU manufacturing turnover.
reference period. It includes all duties and taxes on the goods Automotive and food products are the two largest sectors in
or services invoiced by the unit with the exception of VAT the EU manufacturing industry, accounting for more than one
Energy
invoiced by the unit to its customer and other similar deductible quarter of all turnover (27.2%).
taxes directly linked to turnover. It also includes all other
charges (transport, packaging, etc.) passed on to the customer. •
With €533 billion, chemicals represent the fourth leading
Price reductions, rebates and discounts as well as the value sector, accounting for 7.6% of EU manufacturing turnover.
of returned packing must be deducted (see Eurostat code,
V12110).
Spending
Environment
Accounting for 16% of added value, chemicals* is

the leading sector
Top 10 sectors: added value (€ billion)
Profile
350
Added value (€ billion)
299,1
300
250
201,1 200,4
200 189,0
172,0
Trade
150
100 87,0 80,4

65,2 64,3 63,0
50
Competitiveness
0
ls*
ive
ts
m ry
als
du c
t
ics
al
ts
cts
m y
m ed
m al
pa ectr uter
ro alli
en
en
uip er
uc
uip ne
et
en
uip tric
ica
et
ot
on
t
l p et
eq hin
ica
od
eq hi
m
el p
m
em
eq lec
ra -m
& m
& ac
pr
br
& ac
to
sic
Co
Ch
ine n
Fa
M
Au
od
Ba
m no
of
Fo
er
ir
th
O
Re
Contribution
* Pharmaceuticals and rubber & plastics included, Eurostat code,V12150 Unless specified, EU refers to EU28
• V
alue added at factor costs is the gross income from operating •
10 sectors account for 75% of EU manufacturing added value.
activities after adjusting for operating subsidies and indirect The chemical sector (including pharmaceuticals and rubber and
taxes. Value adjustments (such as depreciation) are not plastics) is the largest sector in the EU manufacturing industry,
Energy
subtracted (see Eurostat code, (V12150). accounting for about 16% of added value.
Spending
Environment
The chemicals* sector contributes 12%

of EU manufacturing employment
Top 10 sectors: number of employees (in million)
Profile
5
Number of employees (in million)
4 3.8
3.3 3.3
3 2.9
Trade
2.4
2
1.4
1.1 1.1 1.1
1 0.9
Competitiveness
0
ls*
m ry
als
ts
ive
du c
ine n ics
Ele t
al
cts
ts
t
m al
m ed
er tron r
m y
ro alli
en
en
c te
uip er
uc
ica
uip ne
et
en
uip tric
et
ot
t
ele pu
l p et
eq hin
ica
od
eq hi
em
m
m
eq c
ra -m
& m
& ac
pr
br
& ac
to
sic
Ch
Co
m
Fa
Au
od
Ba
m no
of
Fo
ir
pa
th
O
Re
Contribution
• N
umber of employees is defined as those persons who work • C
hemicals (including pharmaceuticals and rubber and plastics) is
for an employer and who have a contract of employment the third largest sector (3.3 million people). It contributes 11.6%
and receive compensation in the form of wages, salaries, fees, of EU manufacturing employment. The sector generated an
Energy
gratuities, piecework pay or remuneration in kind. A worker even greater number of indirect jobs – up to three times higher
from an employment agency is considered to be an employee than through direct employment.
of that temporary employment agency and not of the unit
(customer) in which they work (see Eurostat code, V16130). • A
ccording to Eurostat data, employment in the EU chemical
industry (without pharmaceuticals and rubber and plastics) is
• T
here are 28.3 million people directly employed in the EU particularly high in five sub-sectors – petrochemicals; paints,
manufacturing sector (data 2015). 10 sectors account for 75% of varnishes and similar coatings; printing ink and mastics; plastics
EU manufacturing employment. Food products and fabricated in primary forms; perfumes and toilet preparations; soap and
Spending
metals are the two largest sectors in the EU manufacturing detergents, cleaning and polishing preparations – all sectors
industry, accounting for a quarter of all employment (25.2%). with a significant presence in the EU.
Environment
50% higher salaries in chemicals

than manufacturing average*
Top 10 sectors: labour costs per employee (LCE in manufacturing = 1)
Profile
3.0
Labour cost (per sector)/ Labour cost manufacturing
2.5
2.0 1.93
1.64
1.49
Trade
1.5 1.44
1.32 1.29 1.26 1.26 1.20 1.13
1.0
0.5
Competitiveness
0.0
m
ics
t
t
als
ls
m t
ive
m y
als
o
tro ed
m l
ctr ter
en
en
en
uip or
uip er
uip ica
cc
ica
leu
on
et
tic
ot
pe efin
eq nsp
eq hin
ba
ele pu
eq ctr
em
m
m
eu
To
& m
& ac
R
tra
Ele
to
sic
Ch
ac
Co
M
Au
m
Ba
er
ar
th
Ph
Contribution
* Eurostat code,V91210-Average personnel costs Unless specified, EU refers to EU28
• P
ersonnel costs are defined as the total remuneration, in cash • A
ccording to Eurostat data, the chemical sub-sectors with the
or in kind, payable by an employer to an employee (regular highest personnel costs at the EU-aggregate level are organic
and temporary employees as well as home workers) in return basic chemicals, plastics and paints. However, the analysis
Energy
for work done by the latter during the reference period. indicates that some sub-sectors with very low absolute value
Personnel costs also include taxes and employee social security at EU-aggregate level appear to have the highest costs per
contributions retained by the unit as well as the employer’s employee, such as synthetic rubber or pesticides/nitrogen.
compulsory and voluntary social contributions. Personnel costs
are made up of wages and salaries and the employer’s social • C
oncerning the personnel costs per employee, chemicals
security costs (see Eurostat code, V91210). represent the third leading sector. Refined petroleum,
pharmaceuticals and chemicals generated the three highest
• P
ersonnel costs amounted to €1,140 billion in the EU costs per employee. Labour cost per employee is nearly 50%
Spending
manufacturing sector. 10 sectors account for 73.1% of EU higher than the manufacturing average.
manufacturing personnel cost. Machinery equipment and
automotive are the two largest sectors in the EU manufacturing
industry, accounting for nearly a quarter of all personnel costs
(23.6%). Chemicals represent the fifth largest sector (€66
billion), accounting for 6% of EU manufacturing personnel costs.
Environment
Labour productivity* 77% higher in chemicals

than manufacturing average
Top 10 sectors: Apparent labour productivity
(ALP in manufacturing = 1)
Profile
4
ALP (per sector)/ALP (manufacturing)
3.29
3 2.85
2.56
Trade
2 1.77
1.32 1.29
1.15 1.10 1.08
1 0.97
Competitiveness
0
m
t
o
als
ls
ive
m t
m y
als
tro ed
m l
en
en
en
uip or
pe
uip er
uip ica
cc
ica
leu
tic
et
ot
pe efin
eq ansp
eq in
Pa
ba
eq ctr
em
m
m
eu
h
To
& ac
R
Ele
to
sic
Ch
ac
tr
M
Au
m
Ba
er
ar
th
Ph
Contribution
Source: Eurostat SBS Data 2015 and Cefic analysis 2019
* Eurostat code,V91110
Apparent labour productivity (Gross value added per person Unless specified, chemical industry excludes pharmaceuticals
employed) - thousand euro Unless specified, EU refers to EU28
•
Apparent labour productivity (gross value added per person •
Chemicals represent the fourth leading sector. Apparent
employed) expressed in thousand of euros. The number of Labour productivity is 77% higher in chemicals than the
persons employed is defined as the total number of persons manufacturing average.
Energy
who work in the observation unit (inclusive of working

proprietors, partners working regularly in the unit and unpaid
family workers), as well as persons who work outside the unit
who belong to it and are paid by it (e.g. sales representatives,
delivery personnel, repair and maintenance teams). It excludes
manpower supplied to the unit by other enterprises, persons
carrying out repair and maintenance work in the enquiry unit
on behalf of other enterprises, as well as those on compulsory
Spending
military service (see Eurostat code, V91110).

Environment
Labour productivity rate grows at 3.1%
Labour productivity in the EU chemical industry
140
Index (2008 = 100)
Profile
130
120
110
Trade
100
90
Competitiveness
80
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Average growth p.a 2008-2018

� EU chemicals labour productivity (3.1%)
� EU chemicals added value (2.5%)
� EU chemicals employment (-0.6%)
Contribution
Source: Eurostat and Cefic analysis 2019 Unless specified, EU refers to EU28
•
Highly-educated and trained employees, coupled with •
Between 2008 and 2018, labour productivity in the EU
continuously high investments in the workforce, have turned chemical industry rose at an average annual rate of 3.1%.
the EU chemical sector into a leading industry in terms of
Energy
high labour productivity.

Spending
Environment
Chemicals* is the largest investor in EU manufacturing
Top 10 sectors: investment (€ billion)
Profile
50
Investment (€ billion)
45.7
45
40 38.0
35
30.6
30
Trade
25 22.0
20 18.3
15
11.3 11.0
10 9.0 8.4 7.9
Competitiveness
5
0
al
ive
ts
als
c c
s
ls*
t
r
en
en
ge
pe
du lli
et
uc
Ba ts
ica
et
ro ta
ot
ra
m
ipm
Pa
dm
od
m
l p me
m
em
ve
uip
pr
to
qu
sic
te
Be
ra n-
Ch
eq
Au
od
ica
le
ine no
y&
ica
Fo
br
m her
Fa
ctr
er
t
hin
Ele
Contribution
ac
M
•
Gross investment in tangible goods is defined as investment •
Investment rate (intensity)1 in chemicals is far above the
during the reference period in all tangible goods. Included manufacturing average, amounting to 14% in the EU
are new and existing tangible capital goods, whether bought manufacturing sector.
Energy
from third parties or produced for own use (i.e. capitalised

production of tangible capital goods), having a useful life of
more than one year including non-produced tangible goods
such as land. Investments in intangible and financial assets
excluded (see Eurostat code, V15110).
•
There are 2.1 million enterprises operating in the EU
manufacturing sector. They invested about €253 billion in 2015.
Spending
Chemicals (including pharmaceuticals and rubber and plastics)

represent the largest investor in EU manufacturing, accounting
for 18.1% of total investment, followed by Automotive and Food.
Environment
1
Investment intensity = Investment (as % of sales)
Gross operating surplus (GOS)* in chemicals

accounts for 11% of turnover
Top 10 sectors: gross operating surplus (% of turnover)
Profile
24
GOS as % of turnover
22
20 19.8
18
16 15.0 14.9
14
12.0
Trade
12 11.4 11.1 11.0 11.0 10.9 10.7
10
8
6
4
Competitiveness
2
0
als
al
cs
ls
cts c
g
ing
th ipm nery
ge
du lli
rin
cc
ica
et
sti
ine no nt
tic
ro ta
int
ra
ba
dm
ctu
em
Pla
e
u hi
l p me
eu
ve
Pr
To
eq ac
ufa
Ch
ac
te
Be
ra n-
&
& m
ica
m
an
er
of
ar
bb
br
m
m er
ir
Ph
Fa
Ru
er
pa
th
O
Re
Contribution
O
•
Gross operating surplus (GOS), or profits, is defined as value •
With regard to its gross operating profit, chemicals compares
added minus personnel costs. It is the surplus generated by favourably to other manufacturing sectors as well. The ratio
operating activities after the labour factor input has been of gross operating profits to turnover is the seventh highest in
Energy
compensated for. GOS in chemicals accounts for 11% of industry and is well above the manufacturing average.
turnover (see Eurostat code V92113).
Spending
Environment
Profile
Trade
Competitiveness
ENERGY
CONSUMPTION 42
Total energy consumption in the EU chemical
industry by source 43
Contribution
Fuel and power consumption in the EU chemical industry 44
Gas consumption in the EU chemical industry 45
Electrical energy consumption in the EU chemical industry 46
Total petroleum products consumption
in the EU chemical industry 47
Energy
Solid fuels consumption in the EU chemical industry 48
Renewable and biofuels energies consumption
in the EU chemical industry 49
EU chemicals energy consumption:
2017 vs 2019 50
Energy intensity in the EU chemical industry 51
Spending
Energy intensity: Chemicals vs total industry 52

Environment
Energy consumption Cefic Facts & Figures 2020 43
Gas and electricity account for nearly 2/3

of total energy* consumption
Total energy consumption* in the EU chemical industry by source
0.1 0.1
Profile
0.6
13
36
52.7 million tonnes

of oil equivalent
Trade
14 (2017)
30
Competitiveness
Gas Solid fossil fuels
Electricity Non-renewable waste
Oil and petroleum products* Renewables and biofuels
Heat
Contribution
Source: Eurostat energy database Unless specified, chemical industry excludes pharmaceuticals
* Chemicals including pharmaceuticals Unless specified, EU refers to EU28
•
Energy in all products: consists mainly of gas (natural gas, •
The EU chemical industry, including pharmaceuticals,
G3000, and manufactured gases C0350-0370), electricity significantly reduced its fuel and power consumption from Energy
(E7000), oil and petroleum products (excluding biofuel portion) 1990 to 2017. Most of the energy used by the chemical industry
(O4000XBIO), heat (H8000), solid fossil fuels (C0000X0350 as feedstock is stored in products and can still be recycled.
-0370), non-renewable waste (W6100_6220), renewables and Regarding other raw materials, the chemical industry uses a
biofuels (RA000), and others such as peat and peat products wide variety of natural and processed feedstocks, including
(P1000), oil shale and oil sands (S2000) and nuclear heat metals, minerals and agricultural raw materials such as sugar,
(N900H). starch and fats.
•
The chemical industry transforms energy and raw materials into
products required by other industrial sectors as well as by final
Spending
consumers. The cost of energy and raw materials is a major

factor in determining the competitiveness of the EU chemical
industry on the global market.
•
In 2017, the fuel and power consumption of the EU chemical
industry, including pharmaceuticals, amounted to 52.7 million
tonnes of oil equivalent. Gas and electricity account for nearly
two thirds of total energy* consumption
Environment
Fuel and power consumption* falls 24% since 1990
Fuel and power consumption in the EU chemical* industry
Profile
70
Millions of tonnes of oil equivalent
69.7
65
-24%
60 61.5
59.5
Trade
55 57.9
50 53.3
52.7
45
Competitiveness
40
1990 1995 2000 2005 2010 2017
Contribution
Source: Eurostat and Cefic analysis 2019 Unless specified, chemical industry excludes pharmaceuticals
•
Total energy consumption in the EU chemical sector was
valued at 52.7 million tonnes of oil equivalent in 2017, Energy
down from 69.7 million tonnes in 1990 (24% less). Energy
consumption in the EU chemical sector went down by an
average of 1.03% per annum between 1990 and 2017. Energy
consumption in chemicals accounted for 20.2% of total industry
energy consumption in 2017.
•
In 1990, the fuel and power consumption of the EU manufacturing
industry amounted to 341.7 million tonnes of oil equivalent.
Between 1990 and 2017, the sector considerably decreased
Spending
its fuel and power consumption by 80.6 million tonnes of oil

equivalent. The amount of energy consumed in 2017 was 23%
less than in 1990.
Environment
Gas consumption* falls 30% since 1990

Gas consumption* in the EU chemical industry:
Thousand tonnes of oil equivalent
Profile
28,000
Thousand of TOE
24,000
20,000
16,000
Trade
12,000
8,000
Competitiveness
4,000
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
Source: Eurostat energy database (G3000) Unless specified, chemical industry excludes pharmaceuticals
•
Gas energy consumption is the sum of natural gas (G3000), •
More than one third of total energy consumption in the EU
and manufactured gases (C0350-0370). “Gas” consumption in chemical sector is attributable to “gas” (35.8% in 2017, down Energy
the EU area was valued at 18.8 million tonnes of oil equivalent from 38.5% in 1990). Gas consumption in the EU chemical
in 2017 (far below the 26.6 million reported in 1990). “Gas” sector accounts for more than 21% of total industry consumption
consumption went down by an average of 1.3% per annum (2017). The share of gas consumption in total industry
between 1990 and 2017, and by 30% in 2017 compared consumption went down from 24% in 1990 to 21.5% in 2017.
to 1990.
Spending
Environment
Electrical energy consumption* falls nearly 13% since 1990

Electrical energy consumption* in the EU chemical industry:
Profile
20,000
Thousand of TOE
18,000
16,000
14,000
12,000
Trade
10,000
8,000
6,000
4,000
Competitiveness
2,000
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
Source: Eurostat energy database (E7000) Unless specified, chemical industry excludes pharmaceuticals
•
“Electrical energy” consumption (E7000) in the EU chemical •
“Electrical energy” consumption accounts for 30% of total
business area was valued at 15.8 million tonnes of oil equivalent energy consumption of the EU chemical sector in 2017 Energy
in 2017 (below the 18.1 million reported in 1990). “Electrical (up from 26% in 1990). “Electrical energy” consumption
energy” consumption went down by an average of 0.5% in chemicals accounted in 2017 for 17.7% of total industry
per annum between 1990 and 2017. “Electrical energy” (down from 21.2% in 1990).
consumption went down by nearly 13% in 2017 compared
to 1990.
Spending
Environment
Total petroleum consumption* falls 31% since 1990

Total petroleum products consumption* in the EU chemical industry:
Profile
14,000
Thousand of TOE
12,000
10,000
8,000
Trade
6,000
4,000
Competitiveness
2,000
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
Source: Eurostat energy database (O4000XBIO)
* Chemicals including pharmaceuticals, oil and petroleum products Unless specified, chemical industry excludes pharmaceuticals
(excluding biofuel portion) Unless specified, EU refers to EU28
•
“Oil and petroleum products” consumption (excluding biofuel •
“Petroleum” consumption accounted for 13.8% of total energy
portion) (O4000XBIO) in the EU chemical sector was valued consumption of the EU in 2017 (slightly down from 15.2% in Energy
at 7.3 million tonnes of oil equivalent in 2017, compared to the 1990). “Petroleum” consumption in the EU chemical sector
10.6 million registered in 1990. “Petroleum” consumption accounted for 27.1% of total industry petroleum consumption
went down at an average of 1.4% per annum between 1990 in 2017.
and 2017. “Petroleum” consumption fell by 31% in 2017
compared to 1990.
Spending
Environment
Solid fossil fuels consumption* falls 58% since 1990

Solid fuels consumption* in the EU chemical industry:
Profile
8,000
Thousand of TOE
7,000
6,000
5,000
Trade
4,000
3,000
2,000
Competitiveness
1,000
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
Source: Eurostat energy database (C0000X0350-0370) Unless specified, chemical industry excludes pharmaceuticals
•
“Solid fossil fuels” consumption (C0000X0350-0370) in the •
“Solid fossil fuels” consumption accounted for 5.9% of energy
EU chemical sector was valued at 3.1 million tonnes of oil consumption of the EU chemical sector in 2017, far below Energy
equivalent in 2017, far below the 7.4 million registered in 1990. the 10.6% registered in 1990. The share of “Solid Fuels”
“Solid fossil fuels” consumption went down by an average of consumption in chemicals to total industry was valued at
3.2% per annum between 1990 and 2017. “Solid fossil fuels” 21.5% in 2017.
consumption fell by 58% in 2017 compared to 1990.
Spending
Environment
Renewable and biofuels energies consumption*

more than doubled since 2000
Renewable energies consumption* in the EU chemical industry:
Profile
450
Thousand of TOE
400
350
300
250
Trade
200
150
100
Competitiveness
50
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Contribution
Source: Eurostat energy database (RA000) Unless specified, chemical industry excludes pharmaceuticals
•
Renewable and biofuels energy consumption (RA000) in the •
The share of renewable and biofuels energy consumption
EU area was valued at 316 thousands of tonnes of oil equivalent in chemicals increased from 0.3% in 2000 to 0.6% in 2017. Energy
in 2017, significantly up from 156.8 in 2000. Renewable and
biofuels energy consumption grew at an average of 4.2% per
annum between 2000 and 2016. Renewable and biofuels
energy consumption was 1.2 times higher in 2016 compared
to 2000.
Spending
Environment
A significant reduction in energy consumption* since 1990
EU chemicals energy consumption*: 2017 compared to 1990 (delta in %)
Profile
30
1990 vs 2017 (delta in %)
20
10 20
9
0
-13
-10
-58 -42 -31 -30
Trade
-20
-30 -24%
-40
-50
Competitiveness
-60
-70
Solid Renewable Total Gas Electrical Non-renewable Heat
fossil fuels and biofuel petroleum energy waste
energies products
Type of energy
All products
Contribution
Source: Eurostat energy database Unless specified, chemical industry excludes pharmaceuticals
•
In absolute terms, the EU chemical industry significantly •
The EU chemical industry dropped its consumption of solid
reduced its fuel and power consumption by 17 million tonnes fossil fuels from 7.4 to 3.1 million tonnes of oil equivalent Energy
of oil equivalent from 1990 to 2017. Nearly half of this decline between 1990 and 2017. The reduction of solid fossil fuels looks
was driven by the reduction in gas consumption as a source of impressive, with a nearly 60% decrease in 2017 compared
energy used by the EU chemical industry. to 1990. Finally, consumption of total petroleum products
and electrical energy dropped respectively by 3.3 million and
•
Gas consumption amounted to 18.9 million tonnes of oil 2.3 million tonnes of oil equivalent in the same period.
equivalent in 2017, down from 26.9 million tonnes of oil
equivalent in 1990 (30%).
Spending
Environment
Energy intensity* halved over a 26-year period
Energy intensity* in the EU chemical industry
190 +84%
Index (1991 = 100)
180
Profile
170
160
150
140
130
120
110
100
90 100.0 -16%
Trade
80
70 85.4
60 69.5
50
40 55.7 52.2
30 45.5
20
Competitiveness
10
0
1991 1996 2001 2006 2011 2017
Average growth rate p.a. 1991-2017

� EU chemicals production index (2.4%)
� EU energy consumption index (-0.7%)
� EU energy intensity (-3.0%)
Contribution
Source: Eurostat energy database and Cefic Chemdata International 2019
* Energy intensity is measured by energy input per unit of chemicals production Unless specified, chemical industry excludes pharmaceuticals
(including pharmaceuticals) Unless specified, EU refers to EU28
•
The EU chemical sector has been a pioneer in energy efficiency. •
By 2017, energy intensity, being the energy consumption
It recognised early that in order to be competitive in a global per unit of production, in the chemical industry, including Energy
market, competitive advantages must be sought at every pharmaceuticals, was 55% lower than in 1991. Further
opportunity. improvements to energy efficiency are subject to decreasing
returns. The chemical industry succeeded in continuously
•
As one of the most energy-intensive sectors, chemical increasing its input from 1991 to 2017, while at the same time
companies have also had more scope for reduction than others. keeping its energy input relatively constant.
By making processes more efficient, including the construction
of new facilities, the energy efficiency drive has been sustained •
As a result, the EU chemical industry has excelled in significantly
for many years. Making further significant improvements lowering its energy intensity by an average of 3% per year. This
requires technological breakthroughs. analysis shows that improvements in energy efficiency were
Spending
spectacular from 1991 to 2005. The period from 2005 to 2017

•
For many years, the EU chemical industry, including shows less significant performance.
pharmaceuticals, has made strenuous efforts to improve
energy efficiency by reducing its fuel and power energy
consumption per unit of production.
Environment
Chemical sector* consistently performs

better than overall industry
Energy intensity: Chemicals* vs total industry
Profile
105
Index (1991 = 100)
100
95
90
85
80
75
Trade
70
65 -40%
60
55
50
45
Competitiveness
40 -54%
35
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Average growth rate p.a. (1991-2017)

� EU industry (-2.0%)
� EU chemicals* (-3.0%)
Contribution
Source: Eurostat energy database and Cefic Chemdata International 2019 Unless specified, chemical industry excludes pharmaceuticals
•
Energy intensity in the EU chemical industry decreased by an
average of 3% per annum from 1991 to 2017. As for the whole Energy
of the EU manufacturing sector, the energy intensity went
down by 2% per year during the same period. Energy intensity
in the EU chemical industry was 55% lower in 2017 compared
to 26 years ago.
Spending
Environment
Profile
Trade
Competitiveness
CAPITAL &
R&I SPENDING 53
Capital spending in the EU chemical industry broken
Contribution
Capital spending in the EU chemical industry 55
Capital spending by region 56
Capital intensity in the EU chemical industry broken
Capital spending, 2008 vs 2018 58
EU share of global chemicals investment 59
Energy
Chemicals capital spending by country, 2008 vs 2018 60

R&I spending in the EU chemical industry 61
R&I spending by region 62
Chemicals R&I spending by country, 2008 vs 2018 63
Spending
Environment
Capital & R&I spending Cefic Facts & Figures 2020 54
Petrochemicals is the largest investor

in the EU chemical sector
Capital spending in the EU chemical industry broken down
by sub-sectors (€ billion)
0.43
Profile
0.97
1.10
1.12
6.52
1.20
1.41
€21 billion
Trade
1.67
3.05
1.70
1.83
Competitiveness
Petrochemicals Cosmetics Paints and inks
Plastics Other inorganics Dyes and pigments
Auxiliaries for industry** Industrial gases Others
Fertilizers Soap and detergents
Contribution
Source: Eurostat SBS Data (2015) Unless specified, chemical industry excludes pharmaceuticals
Unless specified, EU refers to EU28
•
Gross investment in tangible goods is defined as investment •
Several major petrochemical projects, including the first steam
during the reference period in all tangible goods. Included cracker to be built in Europe in 20 years (ethane/ Ineos) and
are new and existing tangible capital goods, whether bought propane dehydrogenation plants, were announced in 2017–18
Energy
from third parties or produced for own use (i.e. capitalised for Europe.
production of tangible capital goods), and having a useful life
of more than one year, including non-produced tangible goods •
It was the first time in many years that Europe has seen capital-
such as land. Investments in intangible and financial assets are investment announcements in petrochemicals of this size. In
excluded (see Eurostat code, V15110). general terms, the strength of the EU petrochemical industry
is the high integration of crackers in the chemical value chain in
•
Nearly one third of EU chemicals investment is attributable to Europe. One of the key challenges facing the petrochemicals
the petrochemicals business. With €6.5 billion, petrochemicals business is the EU Commission-led Green New Deal for
Spending
is the largest investor in the EU chemical sector, followed by Europe and the discussion to fully decarbonise the EU economy
plastics and “auxiliary for industry”. by 2050.
•
On the global scene, the European petrochemicals industry is in
challenging times. All regions are expanding their petrochemical
production bases. These investments are usually not intended
as stand-alone plants, but as an initial step to generate huge
chemical and, subsequently, manufacturing hubs.
Environment
EU capital spending reaches second highest level since 2000
Capital spending in the EU chemical industry
Profile
30 25
Capital spending (€ billion)
Capital spending (% added value)

25 20.6%
16.2% 20
22.8 22.8
20 21.4
20.3 20.5 21.3 20.1 21.1 20.3 22.0 21.1
19.1 15
18.2
17.8 17.1 17.4 17.1 20.5
Trade
15
15.2
10
10
5 5
Competitiveness
0 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
� EU chemicals capital spending (% of added value)

� EU chemicals capital spending (€ billion)
Contribution
Source: Cefic Chemdata International 2019 and Cefic analysis 2019 Unless specified, EU refers to EU28
•
Capital investment is a key factor in securing the future •
In relative terms, the ratio of capital spending to added value, or
development of the chemical industry. In many cases, major capital intensity, of the chemical industry in the European Union
equipment or plant renewals require long-term planning. has been increasing gradually since 2010, reaching the value
Energy
Such investments are not only related to the improvement of 16.2% in 2018. This is slightly below the long-term average
of productivity or introduction of new products but are intensity over the years between 2000 and 2017 at 17.7%.
also due to the need to comply with regulations or reduce
operating costs. •
The European chemical industry continues to believe in
the future. It needs to maintain investment in its existing
•
The chart illustrates that investment (in absolute figures) in the infrastructure and in new production facilities to ensure
European Union has been increasing. EU chemicals investment the chemical sector has a viable and vibrant future.
reached the value of €22.8 billion in 2018 – the highest level of
Spending
capital spending since 2000.

Environment
China dominates world chemicals investment
Capital spending by region
Profile
Rest of Europe*
EU 6.5
6.6 China
14.4 21.3
30.6 22.8 31.7 8.1
NAFTA** 6.0 Japan
87.1 3.9
7.7
Trade
3.6 South Korea
India 4.6 Rest of Asia***
12.8
3.8
4.8 21.4
Latin America
Competitiveness
2.3
6.6
1.5 Rest of the world
2008 chemicals capital spending (€ billion)

2018 chemicals capital spending (€ billion)
Contribution
•
In absolute values, the level of world investment in the chemical •
In 2018, China contributed 45% of global investment, up from
sector was 1.8 times higher in 2018 compared to 10 years ago 29% in 2008. NAFTA still ranks second, contributing 15.9% of
(€193.1 billion vs €108.4 billion). global investment in 2018. Europe came third, accounting for
Energy
15.2% of global investment the same year.

•
Between 2008 and 2018, global investment grew 6% per
annum on average. This is far below Chinese investment
growth of 10.6% during the same period.
•
China is outpacing other economies in the world such as North
America (7.8%), South Korea (7%), rest of Asia (5.2%), India
(2.5%) and Latin America (2.4%). With less than 1% growth,
Spending
Europe (EU28 + rest of Europe) is still lagging behind the main

regions in the world.
Environment
Capital spending (% of added value) 21% higher

in chemicals than manufacturing average
Capital intensity* in the EU chemical industry broken down by sub-sectors
35
Investment (% of added value) 2015
Profile
30
30.0
25 25.9
Investment rate:
20
20.5 20.1 Chemicals 17%
18.1
15 Manufacturing 14%
Trade
15.6 15.0
14.0 14.0
12.6 12.5
10 10.9
9.2
5
Competitiveness
0
Fertilizers Plastics Crop protection
Industrial gases Soap and detergents Essential oils
Petrochemicals Cosmetics Paints and inks
Other inorganics Man-made fibres
Dyes and pigments Auxiliaries for industry**
Source: Eurostat SBS Data (215)
Contribution
* Eurostat V15110 - Gross investment in tangible goods; intensity
is defined as V94415 (investment/value added at factors cost) Unless specified, chemical industry excludes pharmaceuticals
** Nace code, 2059 other chemical products n.e.c. Unless specified, EU refers to EU28
•
Data analysis compares capital spending in the EU chemicals •
The highest capital intensity is attributable to fertilizers and
business broken down by sub-sector. The metric used in the industrial gases, followed by petrochemicals, which is the largest
analysis is capital intensity, meaning capital spending expressed investor in the EU chemicals business. The lowest intensity
Energy
as percentage of added value. values are attributable to “crop protection”, followed by

“essential oils”, and “paints and inks”.
•
The analysis shows capital intensity is equal to 17% in the
EU chemicals business, above the 14% registered in the EU
manufacturing sector as a whole. Capital intensity is 21% higher
in chemicals than the manufacturing average.
Spending
Environment
EU capital intensity below key emerging economies
Capital spending (% added value), 2008 vs 2018
Profile
Rest of Europe*
24.4
China
EU 16.5
19.4 33.8
11.6 16.2 32.6 19.9
14.2 NAFTA** 25.4 10.8
Japan
Trade
19.6
41.0 South Korea
India 23.3 Rest of Asia***
29.5
12.0 19.1
11.1
Latin America
Competitiveness
21.5
2008 chemicals capital spending (% of added value)

2018 chemicals capital spending (% of added value)
Source: Cefic Chemdata International 2019 and Cefic analysis 2019
Contribution
•
Capital spending intensity (spending as a percentage of added •
Capital spending intensity is a key factor affecting
value) in China and India is far higher than in the rest of the competitiveness. It is an indicator of loss of attractiveness as
world. In 2018, capital spending accounted for nearly one third well a driver of future competitiveness: the more investment
Energy
of added value in China (32.6%). In India, more than a fifth of the more competitive the region becomes and vice versa.
added value is attributable to capital spending (23.3%). South For example, since 2010, there have been 339 new chemical
Korea and the rest of Asian countries showed an intensity value industry projects announced in the USA. Together, these
which is close to 20%. With 16.2%, the EU area is still behind projects represent $201 billion in new capital investment in the
the emerging-producing regions in Asia, but significantly ahead USA. More than half (56%) of the investment has already been
of NAFTA and Latin America. completed or is currently under construction. (Source, ACC-
Sep-2019).
•
Capital spending in the EU chemical industry grew by less
Spending
than 1% per annum on average in ten years (2008-2018).

By contrast, added value grew quicker at 2.5% during the
same period.
Environment
EU loses two thirds of its original market share

over a 20-year period
EU share of global chemicals investment
25
Profile
40
EU chemicals investment (€ billion)
Global share (%)

32.8% 22.8 22.8 35
21.8 21.4 22.0
20 21.3 21.1 21.1
21.0 20.5 20.5 20.3
20.3 20.1 30
19.1
18.2
17.8 17.1 17.4 17.1
15 25
15.2
Trade
20
10 15
11.8% 10
5
Competitiveness
5
0 0
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Global share (%)

EU chemicals investment (€ billion)
Contribution
•
Developments over the last 20 years indicate that the European •
EU chemical spending has been growing modestly since 1998.
Union position has weakened. In 1998, the EU reported capital By contrast, global investment reported an impressive increase
spending of €21 billion, making up a third of global chemicals from €64.1 billion in 1998 to €193.1 billion in 2018. Therefore,
Energy
investment. In 1998, the EU was the largest chemicals investor, the EU investment market share lost about two thirds of its
dominating the chemicals world ranking at that time. China original value in 20 years, down from 32.8% in 1998 to 11.8% in
accounted for less than 5% of global investment. 2018.
Spending
Environment
Significant decline in share of chemicals capital spending

for the EU and Japan
Chemicals capital spending by country, 2008 vs 2018 (% of total)
2008 (% of total) 2018 (% of total)

2.5% 2.4% 0.8%
Profile
3.1%
3.4%
3.3% 2.1% 4.0%
3.5%
29.3%
7.5%
6.0% 11.1%
Trade
3.6% €108.4 billion €193.1 billion 45.1%
11.9%
13.3%
11.8%
19.7%
Competitiveness
China Rest of Europe*
NAFTA** Japan 15.9%
EU Latin America
Rest of Asia India
South Korea Rest of the world
Contribution
* Rest of Europe covers Switzerland, Norway,Turkey, Russia and Ukraine Unless specified, chemical industry excludes pharmaceuticals
** North American Free Trade Agreement Unless specified, EU refers to EU28
A look at global capital spending in the chemicals business shows •

Apart from China, NAFTA and South Korea, all main countries
the following: reported a decline in global market share in 10 years. The EU
area and Japan experienced the most significant decline in their
Energy
•
World capital spending reported the value of €193.1 billion world share during the same period.
in 2018, up from €108.4 billion in 2008. Investment around
the world grew at 6% per annum on average over the past •
The EU investment market share went down from 19.7% in
10 years. It showed a very encouraging trend: chemicals 2008 to 11.8% in 2018. Japan reported a less dramatic decline,
companies around the world have nearly doubled their from 7.5% to 3.1% during the same period. The rest of Europe
investment in ten years. accounted for 3.4% in 2018, far below the 6% reported in 2008.
•
Strong development in China drove the significant increase in
Spending
global investment in the chemicals business. China accounted

in 2018 for 45.1% of global investment, far above the 29.3%
reported in 2008. NAFTA and South Korea reported positive
results, but less spectacular compared to China.
Environment
EU Research and Innovation (R&I) spending reaches highest

level since 2000
R&I spending in the EU chemical industry
10
Profile
12
€ billion
% of added value
10 7.8%
10.0 8
9.7 9.6
8.9 9.4
8 8.3 8.5 8.5 7.1%
8.1 7.9 8.0 8.1 7.9 7.9 7.9
7.7 7.6 7.8 7.6 6
Trade
6
4
4
2
2
Competitiveness
0 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
EU chemicals R&I spending (% of added value) Average growth rate p.a. 2000-2018
Added Value: + 1.2%
EU chemicals R&I spending (€ billion) R&D spending: +1.7%
R&D spending (% of Added Value): -0.5%
Contribution
Source: Cefic Chemdata International 2019 and Cefic analysis 2019 Unless specified, EU refers to EU28
•
Investments in R&I are key elements in securing the future •
Concerning chemical intensity, the analysis shows that R&I
of the chemical industry and needed to maintain or increase spending in the EU chemical business grew at an average
its strong contribution to solving societal challenges. of 1.2% per annum between 2000 and 2018. Added value
Energy
Indeed, the chemical industry is an enabler of innovation in reported similar growth during the same period at 1.7%.
numerous downstream value chains through its products and As a result, R&I intensity (spending as a percentage of added
technologies. value) registered a similar value at 7.1% in 2018 compared to
7.8% in 2000.
•
Spending on R&I in the EU chemical industry was valued at an
average annual level of €8.4 billion between 2000 to 2018. In
2018, R&I spending reached €10 billion, the highest since 2000.
Spending
Environment
Europe is the second largest R&I investor in the world
R&I spending by region
Profile
EU
8.1 China
Switzerland
10.0
6.9
0.4
2.5
8.4 0.6 11.8 5.4
USA 0.8 7.0
Trade
0.7 2.0 Japan
1.4 South Korea
India
0.2
0.2 Brazil
Competitiveness
1.2
2008 Chemicals R&I spending (€ billion)

2018 Chemicals R&I spending (€ billion)
Contribution
•
Global R&I spending in the chemical sector reached •
The EU area is still the second largest investor in the world. It
€42.9 billion in 2018, from €26.2 billion in 2008. On a global accounted in 2018 for 23.3% of global chemicals R&I spending.
basis, R&I spending was 64% higher in 2018 compared to ten
Energy
years ago.
•
Between 2008 and 2018, global R&I grew about 5.1%. This
is far below Chinese R&I growth of 16.6% during the same
period. China is by far outpacing the other economies in the
world. R&I spending in China was 4.6 times higher in 2018
compared to 2008.
Spending
Environment
Decreasing R&I spending for the EU, USA and Japan
Chemicals R&I spending by country, 2008 vs 2018 (% of total)
2008 2018
0.5% 3.4%
Profile
1.3%
3.3%
4.8%
0.7% 4.4%
1.4%
2.8% 9.7% 27.4%
3.1%
16.3%
Trade
20.7% €26.2 billion 31% €42.9 billion
26.3%
Competitiveness
19.7%
23.3%
China India
EU Switzerland
USA Brazil
Japan Rest of the world
South Korea
Contribution
•
In 2018, China contributed 27.4% of global investment, up from •
The EU share of global R&I spending went down from 31%
9.7% in 2008. R&I spending in the European Union grew at an in 2008 to 23.3% in 2018. A less spectacular result for the
average rate of 2.1% from 2008 to 2018. The European Union USA: 26.3% in 2008 to 19.7% in 2018. Japan reported a more
Energy
ranks second, contributing 23.3% of global investment in 2018. dramatic decline from 20.7% in 2008 to 16.3% in 2018.
The USA ranks third, representing 19.7% of global investment
in 2018.
•
The results show a decreasing share of chemicals R&I spending
for industrial regions. The EU area, the USA and Japan reported
a decline of their market share over the past 10 years.
Spending
Environment
Profile
Trade
Competitiveness
ENVIRONMENTAL
PERFORMANCE 64
Total GHG emissions in the EU chemical industry 65
Contribution
GHG emissions in the EU chemical sector 66
Ammonia production:Total GHG emissions 67
Caprolactam, Glyoxal and Glyoxylic acid production:
Total GHG emissions 68
Nitric acid production:Total GHG emissions 69
Adipic acid production:Total GHG emissions 70 Energy
Carbide production:Total GHG emissions 71

GHG emissions and production 72
GHG emissions per unit of energy consumption
and per unit of production 73
Acidifying emissions in the EU chemical industry 74
Spending
Nitrogen emissions in the EU chemical industry 75

Non-methane volatile organic compounds
emissions to air 76
Environment
Environmental performance Cefic Facts & Figures 2020 65
Total greenhouse gas (GHG) emissions*

fall nearly 60% since 1990
Total GHG emissions* in the EU chemical industry
400
Profile
Millions of tonnes (CO2 equivalent)
350
300 325 321

-58%
250
240
Trade
200 211
150
148
135
100
Competitiveness
50
0
1990 1995 2000 2005 2010 2017
EU chemicals GHG* emissions
Contribution
Source: European Environment Agency (EEA) Unless specified, chemical industry excludes pharmaceuticals
* Energy (Fuel and Power CO2) included Unless specified, EU refers to EU28
•
Long-term data gives evidence of the EU chemical industry, •
Our industry’s shift to less carbon-intensive energy sources has
including pharmaceuticals, having a solid track record from 1990 helped reduce GHG emissions. Much of the decline over the
to 2017 in reducing its GHG emissions. past 20 years is linked to abatement of nitrous oxide (N2O),
Energy
which has a higher global warming potential than CO2 and is

•
According to the European Environmental Agency (EEA), the emitted by some chemical processes.
EU chemical industry, including pharmaceuticals, emitted a total
of 135.2 million tonnes of carbon dioxide (CO2) equivalent in
2017, down from a total of 324.9 million tonnes in 1990. This
58.4% decrease clearly illustrates how much importance the
chemical industry attaches to reducing GHG emissions.
Spending
Environment
Total greenhouse gas (GHG) emissions*

fall by 189.8 million tonnes (CO2) since 1990
GHG emissions* in the EU chemical sector,
million of tonnes (CO2 equivalent)
350
Profile
300
250
200
150
Trade
100
50
Competitiveness
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Process CO2 N2O Unspecified mix of HFCs and PFCs

CH4 PFCs
HFCs SF6
Contribution
•
This chart gives an overview of the main trends in the EU •
The second most important GHG is N2O, accounting for
chemical industry (including pharmaceuticals) GHG emissions 5.6% of total EU GHG emissions in 2017. EU N2O emissions
for the period 1990–2017. were 7.6 million tonnes, which was 93% below 1990 levels.
Energy
Compared to 2016, N2O emissions decreased by 6.3%.

According to the EEA, the most important GHG is CO2 for the
•
EU chemical industry (including pharmaceuticals). It accounted •
Total GHG have fallen by 189.9 million tonnes (CO2) since
for 91.6% of total EU GHG emissions in 2017. In 2017, EU CO2 1990. Data shows that emissions of CH4 increased whereas
emissions were 123.8 million tonnes, which was 27% below emissions of the other GHG such as CO2 , HFCs, N2O, SF6,
1990 levels. Compared to 2016, CO2 emissions decreased by and PFCs decreased during the same period.
about 7%.
Spending
Environment
Ammonia:Total greenhouse gas (GHG) emissions*

fall 23 % since 1990
Ammonia production: Total GHG emissions*, million of tonnes (CO2 equivalent)
Profile
35
30
25
20
Trade
15
10
Competitiveness
5
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
•
The long-term analysis shows a strong decline in GHG •
Total GHG emissions from ammonia production went
emissions for the period 1990–2017. The chemical industry down by an average of 1% per annum between 1990 and 2017,
continues to devote much effort to reducing GHG emissions reducing 1990 emission values by about one fifth (23.5%).
Energy
from ammonia production.

•
In relative terms, more than one third (38.6%) of total GHG
•
According to the European Environmental Agency (EEA), EU emissions were attributable to ammonia in 2017 (25.5 vs 66.2,
production of ammonia by the EU chemical industry emitted million tonnes); this is far above the 15.7% reported in 1990
a total of 25.5 million tonnes of CO2 equivalent in 2017, down (33.4 vs 212.7 million tonnes).
from 33.4 million tonnes in 1990.
Spending
Environment
Caprolactam, Glyoxal and Glyoxylic acid:

Total greenhouse gas (GHG) emissions* fall 47% since 1990
Caprolactam, Glyoxal and Glyoxylic acid production: Total GHG emissions*,
million of tonnes (CO2 equivalent)
Profile
5
Trade
2
Competitiveness
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
•
According to the European Environmental Agency (EEA), •
In relative terms, GHG emissions from producing CGGA
the EU production of CGGA, (Caprolactam, Glyoxal and accounted for 3-4% of total GHG emissions in the EU chemical
Glyoxylic Acid) by the EU chemical industry emitted a total of industry in 2017 (2.2 vs 66.2 million tonnes).
Energy
2.2 million tonnes of CO2 equivalent in 2017, down from a total

of 4.1 million tonnes in 1990. Total GHG emissions from CGGA
production went down by an average of 2.3% per annum
between 1990 and 2017. Nearly half of the original emission
values in 1990 have been reduced.
•
Long-term data shows a significant reduction of GHG emissions
between 1990 and 2003. Total GHG emissions from CGGA
Spending
production went down by an average of 6% per annum

between 1990 and 2003. Since 2004, GHG emissions have
been relatively flat.
Environment
Nitric acid:Total greenhouse gas (GHG) emissions*

fall 93% since 1990
Nitric acid production: Total GHG emissions*, million of tonnes (CO2 equivalent)
Profile
50
45
40
35
30
Trade
25
20
15
10
Competitiveness
5
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
•
According to the European Environmental Agency (EEA), EU •
Data shows a significant reduction of GHG emissions between
production of Nitric Acid by the EU chemical industry emitted 2006 and 2017. Total GHG emissions from Nitric Acid
a total of 3.6 million tonnes of CO2 equivalent in 2017, down production went down by an average of 19% per annum
Energy
from a total of 49.6 million tonnes in 1990. between 2006 and 2017. Since 2013, GHG emissions have been
relatively flat.
•
Total GHG emissions from Nitric Acid production went down
by an average of 9.2% per annum between 1990 and 2017. •
In relative terms, 5.5% of total GHG emissions were
More than 90% of the original emission values in 1990 have attributable to Nitric Acid in 2017 (3.6 vs 66.2 million tonnes);
been reduced. this is far below the 23% reported in 1990 (49.6 vs 212.7
million tonnes).
Spending
Environment
Adipic acid:Total greenhouse gas (GHG) emissions*

fall nearly 100% since 1990
Adipic acid production: Total GHG emissions*, million of tonnes (CO2 equivalent)
Profile
60
55
50
45
40
35
Trade
30
25
20
15
10
Competitiveness
5
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
•
The long-term analysis shows a sharp decline in GHG emissions •
Total GHG emissions from Adipic Acid production went
from 1990 to 2010. The chart shows an impressive reduction down by an average of 13.7% per annum between 1990 and
in total GHG emissions from Adipic Acid production between 2017. 98% of the original emission values in 1990 have been
Energy
1990 and 1999. This was followed by a gradual decline in GHG reduced.
emissions between 1999 and 2009. Since 2010, there have
been no significant changes. •
In relative terms, only 1.6% of total GHG emissions were
attributable to Adipic Acid in 2017 (1.07 vs 66.2 million tonnes);
•
According to the European Environmental Agency (EEA), EU this is far below the 27% reported in 1990 (57.6 vs 212.7 million
production of Adipic Acid by the EU chemical industry emitted tonnes).
a total of 1.07 million tonnes of CO2 equivalent in 2017, down
from a total of 57.6 million tonnes in 1990.
Spending
Environment
Carbide:Total greenhouse gas (GHG) emissions*

fall 87% since 1990
Carbide production: Total GHG emissions*, million of tonnes (CO2 equivalent)
Profile
2.00
1.75
1.50
1.25
Trade
1.00
0.75
0.50
Competitiveness
0.25
0
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
Contribution
•
According to the European Environmental Agency (EEA), EU •
In relative terms, less than 1% of total GHG emissions were
production of Carbide by the EU chemical industry emitted a attributable to Carbide in 2017 (0.22 vs 66.2 million tonnes).
total of 0.22 million tonnes of CO2 equivalent in 2017, down
Energy
from a total of 1.7 million tonnes in 1990.
•
Total GHG emissions from Carbide production went down by
an average of 7.4% between 1990 and 2016. 87% of the original
emission values in 1990 have been reduced.
Spending
Environment
Chemicals production*, greenhouse gas (GHG)

emissions**, decouple
GHG emissions* and production**
Profile
200
Index (1991 = 100)
+84%
180
160
140
120
Trade
100
80
60
40
-57%
Competitiveness
20
0
1991 1996 2001 2006 2011 2017
� Chemicals production
� Greenhouse gas emissions
Contribution
Source: European Environment Agency (EEA) and Cefic analysis 2019
* Including pharmaceuticals Unless specified, chemical industry excludes pharmaceuticals
** Energy (Fuel and Power CO2) included Unless specified, EU refers to EU28
•
The 57% decrease in GHG emissions between 1991 and •
Our products make a significant contribution to society’s
2017 is even more remarkable given that, at the same capacity to reduce GHG emissions. A study from the
time, production in the EU chemical industry, including International Council of Chemical Associations (ICCA) entitled
Energy
pharmaceuticals, expanded by 84%. ”Innovations for Greenhouse Gas Reductions, 2009” found that
the products of the chemical industry, over their lifecycle, save
•
This was achieved thanks to the chemical industry’s conscious between 2.1 to 2.6 times the GHG emissions that are required
effort to develop cleaner technologies, and above all to increase to produce them. It also concluded that this ratio could increase
energy efficiency. Besides increasing energy efficiency of its own to more than 4.1 by 2030.
processes, innovations in the chemical industry also help to
increase the energy efficiency of downstream users and their
products.
Spending
Environment
Greenhouse gas (GHG) intensity plummets 76% since 1991
GHG emissions* per unit of energy consumption and per unit of production**
140
Index (1991 = 100)
Profile
120
100
80
60
Trade
-48%
40
20
-76%
Competitiveness
0
1991 1996 2001 2006 2011 2017
� EU chemicals GHG** emissions (per unit of energy consumption)

� EU chemicals GHG** intensity (per unit of production)
Contribution
Source: European Environment Agency (EEA) and Cefic analysis
* Energy (Fuel and Power CO2) included Unless specified, chemical industry excludes pharmaceuticals
** Including pharmaceuticals Unless specified, EU refers to EU28
•
Over the last two decades, the chemical industry, including •
GHG emissions per unit of energy consumption fell by 48%
pharmaceuticals, has made an enormous effort to minimise the between 1991 and 2017. GHG intensity – GHG emissions per
environmental impact of its production. unit of production – fell by 76% from 1990 to 2017.
Energy
Spending
Environment
Acidifying emission intensity falls by 40% since 2007
Acidifying* emissions in the EU chemical industry
12,000 120
Million of acid equivalent (million Aeq)
Profile
100 100
10,000
8,000 80
60
6,000 60
Trade
4,000 40
2,000 20
Competitiveness
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EU specific acidifying gas emissions (per tonne to unit, 2017=100)

EU acidifying gas emissions* (million Aeq)
Contribution
Source: EPER, E-PRTR, Chemdata international and Cefic analysis, 2019 Unless specified, chemical industry excludes pharmaceuticals
* Ammonia (NH3) + Sulphur oxides (SOx/SO2) + Nitrogen oxides (NOx/NO2) Unless specified, EU refers to EU28
•
Between 2007 and 2017, the chemical industry achieved •
This process interferes with ecosystems, leading to what is
a 40 per cent reduction in its acidifying emissions intensity termed ‘acidification’. In the chemical industry, potentially
(acidifying gas emissions per tonne unit). acidifying gases originate mainly from combustion and the
Energy
production of sulphuric acid, ammonia and nitric acid.

•
Some emissions, such as sulphur oxides (SOx), nitrogen oxides
(NOx) and ammonia (NH3), together with their reaction
products, lead after their deposition to changes in the chemical
composition of the soil and surface water.
Spending
Environment
Nitrogen emission intensity falls by 48% since 2007
Nitrogen emissions in the EU chemical industry
36,000 120
Tonnes
100
Profile
32,000
100
28,000
24,000 80
20,000
53 60
16,000
Trade
12,000 40
8,000
20
4,000
Competitiveness
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EU nitrogen emissions (per tonne unit, 2007=100)

EU nitrogen emissions (in tonnes)
Contribution
Source: EPER, E-PRTR, Chemdata international and Cefic analysis 2019 Unless specified, EU refers to EU28
•
The chemical sector saw a fall of 48% in nitrogen emissions to
water (per production unit) between 2007 and 2017. Energy
•
Nitrogen occurs naturally and is an essential nutrient for healthy
ecosystems. Too high levels can lead to eutrophication of lakes,
streams, rivers, estuaries and oceans. As well as successfully
reducing its releases of nitrogen to water through end-of-
pipe controls, the industry is also working on stewardship
approaches with its partners down the value chain.
Spending
Environment
Non-methane volatile organic compounds (NMVOC)

emission intensity falls by 48% since 2007
Non-methane volatile organic compounds emissions to air
160,000
Tonnes
160
Profile
140,000 140
120,000 120
100
100,000 100
80,000 80
Trade
52
60,000 60
40,000 40
20,000 20
Competitiveness
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EU specific NMVOC emissions (per production unit, 2007=100)

EU NMVOC (in tonnes)
Contribution
Source: EPER, E-PRTR, Chemdata international and Cefic analysis 2019 Unless specified, EU refers to EU28
•
The chemical sector has seen a fall of 48% in NMVOC •
The largest source of man-made NMVOC emissions (approx.
emissions intensity since 2007 (European Pollutant Release 50% 1) is from solvent and product use. The chemical sector
and Transfer Register (E-PRTR) data). This is the result of a contributed to this reduction through a change from solvent-
Energy
range of measures including process optimisation and improved based to water-based paints, process optimisation to reduce
emissions control during storage and transport. emissions, and higher levels of solvent recycling.
•
NMVOCs are ozone precursors, and exposure to high levels
of ozone can cause health issues. The majority of NMVOCs
are emitted from natural sources and the rest from man-made
sources, such as road transport, dry cleaning and solvents use.
Spending
Environment
1
European Environment Agency: Emissions of the main air pollutants in Europe, 2019
Enquiries
Dr. Moncef Hadhri
Industrial Policy
Economic Affairs Manager
Tel. +32.2.436.93.65
mha@cefic.be
Published November 2019 / Illustration: Shutterstock
Cefic, the European Chemical Industry Council, founded in 1972, is the voice of large, medium and small chemical
companies across Europe, which provide 1.2 million jobs and account for about 17% of world chemicals production.
Cefic members form one of the most active networks of the business community, complemented by partnerships
with industry associations representing various sectors in the value chain. A full list of our members is available
on the Cefic website: www.cefic.org/About-us
Cefic is an active member of the International Council of Chemical Associations (ICCA), which represents
chemical manufacturers and producers all over the world and seeks to strengthen existing cooperation
with global organisations such as UNEP and the OECD to improve chemicals management worldwide.
@Cefic
European Chemical Industry Council - Cefic aisbl
www.cefic.org
EU Transparency Register n° 64879142323-90

The European Chemical Industry Facts and Figures 2020

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The European Chemical Industry Facts and Figures 2020

Uploaded by

Copyright:

Available Formats

2020

EU chemical sales 2018 10 EU production value 31

EU chemical sales broken down by country (2018) 11

World matrix: chemicals trade balance 23 Top 10 sectors: investment 40

EU chemicals exports to world 24 Top 10 sectors: Gross operating surplus 41

Chemicals exports by country of origin 2007 vs 2017 25

Capital spending in the EU chemical industry broken

A favourable European industrial policy is needed to stimulate innovation and

Customer sectors of the EU chemical industry 14

Europe is the second largest chemicals

Source: Cefic Chemdata International 2019

A look at global chemical sales over the past ten years • T

€3,347 billion in 2018. With €1,198 billion in 2018, China is still

China dominates chemical sales world ranking

Chemical sales by country: top 10

modestly by less than 1% in 2018 compared to 2017. Business

EU market share drops significantly

World chemical sales 2008 (€1,998 billion)

Japan, where market share decreased from 7 % to 5.4% in the

World market share of EU chemical sales drops by half

EU share of global chemicals market

World share (%)

EU chemical sales (€ billion)

comparably high energy prices, lagging innovation, currency

Base chemicals account for 60% of EU chemical sales

EU chemical sales 2018 (€565 billion)

Basic inorganics 13.7%

Specialty chemicals 27.2% Polymers 21.3%

More than 60% of EU chemical sales generated

EU chemical sales reach highest level since 2008

EU chemical sales structure (€ billion)

552 557 548 552

Home sales Intra-EU exports Extra-EU exports

chemicals products in Belgium or Germany).

More than €160 billion is generated from

€530 billion €565 billion

• Intra-EU Sales: While “home sales” are declining, the

(exports), up from 20% in 2008. The three primary markets for

More than half of EU chemicals are supplied

Other 3.3% Mining and utilities

also provide inputs to a broad range of sectors, from agriculture

World matrix: chemicals trade balance 23

EU chemicals trade surplus reaches significant level

Extra-EU chemicals trade balance

60 47,8 48,2 47,3 48,4

Extra-EU trade balance

EU records trade surplus for most chemical sectors

Extra-EU chemicals trade flows by sector (€ billion)

Extra-EU exports 2018 Extra-EU imports 2018

€161.7 billion 12%

importer in 2018 (36%), followed by specialty chemicals

Top 10 EU partners account for 70% of EU chemicals trade*

EU chemicals trade* flows with top partners (2018)

chemicals production capacity.

EU trade surplus with top competing markets

EU chemicals trade flows with major geographic blocs

Extra-EU exports 2018 (€161.7 billion)

Source: Cefic Chemdata International 2019

A look at the 2018 EU chemicals trade balance with key countries • 

Specialty and consumer chemicals contribute the most

Consumer chemicals Specialty chemicals Polymers

to the other chemical sectors. Consumer chemicals has the

The EU is the largest chemicals exporting

Source: Cefic Chemdata International 2019

• Intra-EU Sales: While “home sales” are declining, the

A look at the 2018 EU chemicals trade balance with key countries •

The summary results of the top five chemicals export markets •

A look at EU chemicals exports during the years 2004-2017 shows •