C&EN has released the Global Top 50 chemical firms for 2026. Management from the chemical firms described that the present business situation is the most severe industry downturn in this generation, both the depth of loss and duration length.

According to 2025 data, total chemical sales of the top 50 chemical firms were US$965.8 billion, a 5.8% drop from 2024. Among them, 39 firms reported declines in sales. Chemical operation profits for 37 firms that revealed such numbers were totaled US$47.2 billion, a 19.5% decrease. 25 firms reported earnings declined, and seven lost money.

These reflect a downgrade in 2025, compared to 2024 sales which were flat and profits had increased 8.1%.

C&EN’s Global Top 50 chemical firms for 2026.

More careful on budget, first affecting R&D

With accumulating financial pressure, global chemical giants tend to control their expenditures in 2025. 32 firms that disclosed capital expenditures posted a combined US$67.7 billion, a drop of 7.8%, posing an evidence that companies are easing investment in new capacity.

Similarly, 29 firms that disclosed R&D spending reported total expenditures of US$12.2 billion, a 2.4% decrease. This YoY decline is rare in industry that the expenditure pressure has shifted from production to R&D, management at firms have even targeted on research laboratories.

Over-investment in expanding capacity during earlier periods have promoted the present imbalance between supply and demand. And now, the industry has to pay for it.

Key reason of slump: Overcapacity in petrochemical

The core of this downturn is the structural overcapacity in petrochemical industry. As petrochemical producers account for a majority in the Global Top 50 list, and they are particularly top-listed, the decline directly affects the overall performance.

Among the top 10, chemical sales of Sinopec, PetroChina, SABIC, and LyondellBasell in 2025 drop, leading to their profit decrease. Sinopec even faced huge loss of US$2.8 billion. Chemical giant BASF and Dow also faced lower sales, largely because of their petrochemical businesses.

BASF recently opened the ethylene steam cracker at its site in Zhanjiang, China. (Source: BASF)

Almost bottom out, but recovery takes time

Forecasters expect that petrochemical market will hit bottom in 2026/2027 and recovers before the end of 2030. Petrochemical firms have started to lower their capacity for this recovery – industry leaders such as ExxonMobil and SABIC are closing ethylene crackers in Europe, where the slump’s impact has been the most keenly felt.

At the same time, chemical industry in Japan and Korea is restructuring while Chinese market is growing in recent years – smaller, older facilities may close through state-sponsored anti-involution policy, which is meant to rein in excessive competition.

Some silver lingings

Specialty chemical suppliers performed rather stably. Arkema and Ecolab reported only slight sales decline, reflecting the anti-cycle ability in sub-segments.

Industrial gas sector also showed resilience. Air Liquide and Air Products and Chemicals posted limited sales decline while Linde achieved slight sales growth, which is quite unique in the industry.

Fertilizers mounted a comeback. Sales increased sharply at Yara, Mosaic, Nutrien, and OCP. Notably, OCP, a Moroccan phosphates producer, made to C&EN’s Global Top 50 for the first time on its surge in sales.

Geopolitical changes add instability to the industry

For 2026, chemical producer has been already facing a difficult path. The industry started the year with petrochemical downturn. The war in Iran and the resulting closure of the Strait of Hormuz further the uncertainty for analysts’ forecast.

Chemical production in the Middle-east area is almost shut while production in Asia is slowed due to lack of Middle-east oil and naphtha feedstocks. Compare to these, business boomed in less affected areas like Europe and North America.

If the war really does end soon, it will likely take at least rest of the year for the chemical industry to get back on track, and that track was not very smooth to begin with.

Conclusion: Searching for certainty among the uncertainties

From all drop in data to market clearing, from silver linings in particular areas to geopolitical issues breakout, the global chemical industry in 2025-2026 is meant to face a deep adjustment period full of uncertainties and changes.

The Global Top 50 chemical firms list by C&EN provides insights to plastics and rubber manufacturers on the megatrend of current situation, which is crucial for adjusting business strategy, capacity planning, and R&D investment.

Even though market downturn remains, it is not far from recovery. At the stage that full of uncertainty, the key is to ensure cash flow for the next recovery.