While the chemical industry was facing many challenges prior to 2020, it experienced further steep decline in the wake of the COVID-19 crisis. Most critically, pressure to cut costs and reduce pricing has affected several organizations in the industry and will continue to be a challenge in the coming years. The pandemic has also caused supply chain disruption and the reduction of raw material availability across the industry, adding further pressure on manufacturers.
Chemicals manufacturers will need to increase investment in R&D and technological innovation to remain competitive and continue growing. A close study of consumer preferences and trends will be critical to maintaining this growth, as these are expected to fluctuate in response to the changing landscape. Understanding consumer needs and planning product development and launches will be increasingly critical to ensuring success.
One key demand from consumers across the industry is high levels of sustainability and environmental friendliness. Chemicals manufacturing is strongly associated with environmental damage and a surge in zero-waste movements will force the industry to adapt and innovate processes rapidly over the coming years.