Chemicals & Polymers

The chemical industry is one of the most important sectors in Germany as an industrial location. As the third largest industrial sector with around 460 k employees and over 500 k indirect jobs, it has a decisive influence on national prosperity.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Thomas Lehmann

Current Developments

Structural change drives the chemical industry

The chemical industry is experiencing a global shift in demand structures and value chains. The life cycles of chemical products are becoming shorter and shorter, while society is increasingly demanding higher energy and resource efficiency.

Growth Rates

2020

-3.9%

2021

+5.0%

2022

+4.8%

Trends

Circular economy

Linear supply chains are evolving into multi-layered economic networks as the recycling of materials and molecules becomes increasingly important.

Transactions

Our Sector Transactions

0

Highlight Transaction

CEA Chemie- und Energie-Armaturen-GmbH x Rensa Group

Number of M&A transactions - DACH region, 2021 (as of August)

213

Significant Transactions

Bain Capital Private Equity & Cinven X Lonza Specialty Ingredients (2021)

Future trends

While no radical technological breakthroughs are foreseeable that will challenge production as a whole, companies could define themselves as part of an intelligent ecosystem in the future. Thus, the collaboration of players from different industries on one platform becomes conceivable. Size, economies of scale and productivity and cost optimisation will also continue to be decisive success factors.

Our View

The competitive environment of the chemical industry is on the brink of change - producers in emerging and resource-rich countries are expanding their capacities and broadening their focus to areas of specialty chemicals that have so far been covered by German exports. Social objectives and changing demand structures are also having a noticeable impact on consumer behaviour. A wave of consolidation is to be expected, especially in the medium-sized sector.

People & Voices

Saxenhammer has in-depth professional and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

“Despite the Corona pandemic and supply bottlenecks, the chemical industry can look back on a strong first half of 2021. Sales increased mainly due to an increase in prices at home and abroad. Overall, further growth is expected - companies are increasingly reaching their capacity limits."

Thomas Lehmann

Partner

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.