Chemical and pharmaceutical industries on the upswing: Sales are increasing despite uncertainties!

Chemical and pharmaceutical industries on the upswing: Sales are increasing despite uncertainties!

The German chemical and pharmaceutical industry recorded remarkable sales growth at the beginning of 2025. According to that Report of the time Sales increased by 4.4 percent in the first quarter compared to the previous quarter, reaching 54.8 billion euros. This positive development is primarily supported by an increase in production figures in the pharmaceutical industry, which increased by over 10 percent.

In total, around 480,000 employees work in this important industry. Despite the current growth, the entire chemical and pharmaceutical industry recorded a decline in sales of two percent to 221 billion euros in 2024. Companies are faced with persistently high energy prices and a stagnating economy, which has clouded business expectations.

Challenges posed by US tariffs

A key factor in the current market dynamics is the advance orders in the pharmaceutical industry, which were influenced by the threat of US tariffs. According to that vfa article Companies are reacting strongly to the uncertain customs policy of the USA, which represents a significant burden, particularly in the pharmaceutical sector. Fears about high tariffs are clouding the business outlook, and the Chemical Industry Association (VCI) is forecasting stagnating production figures and a slight decline in sales of one percent for the current year.

Association President Markus Steilemann expressed the hope that the situation will improve as long as the customs conflict does not escalate and the federal government puts together a corresponding growth package. At the same time, companies such as BASF and Evonik have already announced restructuring programs, cut jobs and shut down plants in order to adapt to the difficult market conditions.

Political and economic implications

The VCI is also calling for relief measures, such as lower energy prices and a reduction in bureaucratic hurdles, in order to ensure the competitiveness of the German chemical and pharmaceutical industry. The market is strongly influenced by global developments, particularly international trade and geopolitical tensions, which have become visible in recent years. The analyzes of trade ties and US tariffs underline the strategic importance of a stable trade relationship between the US and the EU.

In summary, the German chemical and pharmaceutical industry is showing robust performance despite the current challenges and uncertainties in international trade. The coming months will show how successfully the industry is able to adapt to the dynamic market conditions and manage the upcoming risks.