McKinsey Insights: Unlocking Value in the New Chemicals Era

After two decades of outperforming broader capital markets, the global chemicals industry has spent the past three years facing subdued demand, rising competition, and structural overcapacity—erasing earlier gains in total shareholder returns (TSR). In 2025, the sector posted a modest 9% annualized TSR rebound, yet it still lags global indexes as demand stays soft, capacity growth outpaces consumption (especially in Asia’s chains for polyethylene and polyurethane), and margins in key regions approach breakeven. Europe’s energy-cost disadvantages and the commoditization of specialties add further strain. Whether these dynamics reflect a cyclical downturn or a more permanent industry reset remains uncertain. Join us to explore what it will take to succeed in 2026 and beyond—rethinking costs, rationalizing assets, leveraging AI for innovation, sustaining investment, and pursuing transformative M&A for value and scale.