The European Chemical Industry - Outlook
The manufacturing of chemicals in Europe is a booming industry that contributes significantly to the local economy. European chemical producers have made a name for themselves as worldwide leaders in a number of areas, including pharmaceuticals, agrochemicals, speciality chemicals, and petrochemicals, because of their long history and dedication to innovation. The market gains from a solid foundation, cutting-edge R&D skills, and a trained workforce. In order to ensure the manufacturing of high-quality and ecologically friendly products, European chemical manufacturers place a high priority on sustainability and strictly comply with regulatory requirements. Additionally, the market encourages cooperation between government, business, and academic institutions, which promotes innovation and advances in technology.

The increased concern of the public over environmental issues is another strain on the chemical industry. Large fossil fuel consumers, in particular, are the focus of attention. Chemical businesses are under pressure to bolster their environmental reputations, sometimes by engaging in some greenwashing. Investors are urged to research prospective beneficiaries of their funds' environmental, social, and governance (ESG) credentials. ESG concepts, however, are becoming less and less standardized, and a variety of measurement techniques are being promoted. Using a natural resource (such as maize or bamboo) could sound environmentally friendly, but the process of turning it into a finished product might use a lot of energy and generate trash. Pressure from the public helps influence the industry to adopt climate-friendly solutions, but leaders in the chemical industry complain that people are unwilling to shoulder the higher expenses of virtue.

The cost of shipping from Asia has been one of the factors that have protected Europe from significant inroads of imported products. For the majority of 2021, the cost of shipping a 40-foot container with about 26 tons of cargo from East Asia to Europe was running at about $13,000, or $500 per ton. Liquids could be shipped by parcel tanker for $300 per ton of freight. Since then, these costs have decreased; the current price per container is $4000, which is still more expensive than pre-covid rates. When combined with import taxes, these prices have helped shield Europe from some influxes. In the case of liquids or volatile substances, REACH certification is also required.

China, in particular, had become a major source of materials and components for many global companies. The pandemic's peak caused their supply systems to get jammed. The lack of shipping and the high cost of goods made matters worse.

When logistics are flawless, just-in-time supply from a factory halfway around the world might be feasible. Over the previous ten years, they did more and more. But recent years have highlighted how flimsy these supply chains are. Manufacturers are increasingly attempting to source necessary materials nearby or convincing their suppliers to do so.

With regard to technologically advanced items, the trend toward reshoring is particularly significant. This is particularly true for finished goods like electronics, microchips, and high-performance batteries. In spite of greater labour costs, governments are actually funding businesses that build new factories in their own countries. Even now, some governments impose export restrictions on high-tech goods.

This turn away from globalization for the sake of security entails a loss of effectiveness and decreased profitability for the entire world. Since Asia continues to be the site of much of the world's industrial expansion and chemical production technology is now widely used, the chemical industry is only somewhat involved in these changes. However, other operations, like the extraction of lithium, are probably going to relocate closer to their final consumers in Europe and the US. Additionally, governments are promoting the expansion of domestic energy production. Epoxy resins for wind turbine blades are one example of a chemical product whose usage may rise as renewable energy projects pick up speed.

Overall, the manufacturing of chemicals remains a key component of Europe's industrial landscape, as it promotes the creation of jobs, economic expansion, and sustainable development.

The USA Chemical Industry - Outlook
The US chemical manufacturing market is a strong and vibrant sector of the economy that is extremely important. It covers a wide range of industries, such as agrochemicals, speciality chemicals, petrochemicals, and pharmaceuticals. The United States has established itself as a global leader in chemical production because of cutting-edge technology, robust research and development capabilities, and a competent workforce.

Within the US chemical manufacturing business, there has been a rising focus on innovation and sustainability in recent years. To create goods that are greener and more sustainable, to cut waste and emissions, and to improve energy efficiency, businesses are investing in research and development. This emphasis on sustainability not only supports the aims for the environment throughout the world but also gives businesses a competitive edge. The US chemical manufacturing market continues to grow despite obstacles including increased competition from abroad and fluctuating raw material prices. This is due to technological improvements, innovative ideas, and strong demand from a variety of industries. The US chemical manufacturing sector is well-positioned for future growth and success thanks to its capacity to adjust to shifting market dynamics and dedication to quality.

2022 saw a robust resurgence in U.S. chemical production as well, but growth has slowed recently due to a slowdown in end-use industries and challenges for U.S. exports caused by a stronger dollar and slower global GDP. One of the finest years over the previous ten years was 2022 when U.S. chemicals increased by 3.9%. The output of chemicals is predicted to decrease by 1.2% in 2023. Basic and specialized chemical growth will slow in 2023 due to the anticipated mild recession. The production of synthetic and organic chemicals is predicted to decline by 1.5% and 1.2%, respectively, in 2023, while the production of basic chemicals will fall by 1.5%. Growth in both basic and specialized chemicals reemerges in 2024, in accordance with the recovery in end-use markets. Despite slowing growth, the /plentiful domestic supply of natural gas and natural gas liquids continues to favour U.S. chemicals.

Through sophisticated recycling and recovery techniques, carbon reduction initiatives, and sustained investment in U.S. chemistry, the sector will be able to meet rising global demand and improve sustainability.

In 2020, the global economy's decade-long trend of steady growth came to an end and was reversed. Chemical facilities built to provide a market that has not expanded as anticipated initially are now coming online after breaking ground in 2019–2020.

This is primarily the case in Asia, particularly China, which served as the primary development engine prior to the epidemic. As a result, new factories that won't actually be needed for another three years are aggravating overcapacity, which was already evident due to the recent slowdown in the global economy. Perhaps in 2023, consumer demand for chemicals will increase, but even then, the recovery of some chemicals will be hindered by low profitability due to overcapacity.

The Japanese Chemical Industry - Outlook
The dynamic and thriving Japanese chemical manufacturing market is an important sector of the national and international economies. Japan has long been a pioneer in chemical manufacturing and is renowned for its scientific achievements and dedication to quality. Petrochemicals, pharmaceuticals, speciality chemicals, and industrial gases are just a few of the many industries that make up the market. Japanese businesses are renowned for their creative research and development initiatives, which have led to the development of cutting-edge goods and procedures. Additionally, the sector is moving towards ecologically friendly practices due to tight legal requirements and a focus on sustainability. The Japanese chemical manufacturing industry continues to flourish thanks to its highly skilled workforce, cutting-edge facilities, and reputation for quality. This expansion attracts international collaboration and makes a substantial contribution to the country's economic development.

Japanese chemical production increased once more in Q3 of 2022, following a decline in all subsectors in Q2 of that year.

Slow yet consistent growth rates. Due to a 3.7% increase in soap and detergent demand in 2022, domestic household chemical consumption is continuing to rebound. As the worldwide chip shortage eases, demand from the automobile industry, one of the most important customer sectors, is rising. About 50% of chemical sales are made in foreign markets, and external demand climbed once more in Q3. However, slower economic development in China and advanced economies could depress exports in the near future.

Long-term output capacity is projected to suffer, especially in the basic chemicals subsector, due to high domestic production costs and cheaper competition from China and the US.

Geo-political situations in Japan are affecting the chemical manufacturing industry majorly;
- China and Japan are old enemies.
- China is threatening Japan directly with its expansionist policies.
- Diplomatically, India and Japan have come closer because of their common enemy, China.
- Japan has to look for alternate sources for their supply chain.
- Japanese chemical industry opens big opportunity for India.