Weaker expectations of growth in volume for 2022
The war in Ukraine emerged and expectations for 2022 have been subsequently lowered to a +2.5% growth in volume. However, due to the surge in feedstock and energy prices, chemicals output prices will remain high until late 2022 resulting in a +10% increase in value.
These factors will weigh on chemicals output growth globally, in particular driven by weaker expectations in Europe which accounts for 21% of global production. Indeed, the lower momentum in domestic demand due to households' efforts to maintain their purchasing power is expected to affect the entire value chain.
While the increase of middle-class in emerging countries, which is boosting demand for soaps, detergents and higher value-added products such as cosmetics, is seen as a long-term growth driver, the entire chemicals business and notably the energy-intensive segments, is faced with increasing challenges related to the energy transition and sustainability, regarding future energy costs and regulatory challenges.