2025: The Year of Confusion for Chemicals & Materials

zhang Claire
15 hours ago
2 min read

— Where Are We Really Heading?

In conversations with investors, CEOs, and strategists across the global chemical and materials industry, one phrase keeps coming up:

“We know transformation is inevitable — but where exactly should we go?”

2025 feels like a paradox.The industry is full of opportunities — yet direction has never been more unclear.Technological disruption, geopolitical fragmentation, sustainability pressures, and capital realignment are all colliding at once.Every decision feels like building a tower on shifting sand.

Here are the five biggest questions many industry leaders are asking right now 👇

1. The End of Easy Globalization

Trade tensions, new industrial policies, and “friendshoring” are redrawing global supply chains.Companies are rethinking their footprints:

“Should we keep relying on China, or diversify into India, Vietnam, or the Middle East?”

Globalization is no longer a given — it’s a balancing act.

2. Green Transition: Between Idealism and Profitability

ESG, carbon neutrality, and circularity are moral imperatives — but economically painful.

“When is the right time to invest heavily in green chemistry?”“Can sustainability actually pay off, or is it just compliance-driven?”

The world demands greener materials, but no one agrees on how fast or how far to go.

3. Technology Bets: AI, Hydrogen, Biochemicals — or All of the Above?

Artificial intelligence is reshaping R&D and procurement.Hydrogen, CCUS, and advanced materials are redefining what “energy transition” means. Biobased chemistry promises a revolution, but is still halfway to scale.

“Which technology wave should we bet on?”“Can our organizations learn fast enough to stay relevant?”

4. Demand Is Shifting — Are We Still Serving the Right Markets?

Downstream industries are transforming fast: EVs are replacing internal combustion, construction is slowing, and electronics are plateauing.

“Who will be our core customers in the next decade?”“Are we prepared to shift from bulk chemicals to functional and specialty materials?”

The demand map of the chemical world is being redrawn — quietly but fundamentally.

5. Capital Logic Has Changed

Investors think traditional chemical businesses are too heavy,while early-stage materials startups seem overvalued.High interest rates, slow M&A, and weak valuations are reshaping funding models.

“Does the market still understand our value?”“Should we separate legacy and future businesses to attract new capital?”

The Bigger Picture

The chemical and materials sector in 2025 is pulled by two powerful uncertainties:

Sustainability and policy pressures on one side,
Technology and market disruption on the other.

The hardest question isn’t about technology or regulation — it’s about balance:

How do we make money today without losing relevance tomorrow?

Over to you:

If you’re an investor, executive, or strategist in the chemical or materials industry —

👉 What is your biggest uncertainty in 2025?

👉 Where do you believe the real growth will come from in the next five years?

Share your thoughts in the comments.Your perspective might just shape the next industry consensus.