Basic Chemical Manufacturing in Ireland - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Basic Chemical Manufacturing in Ireland industry analysis

Before the pandemic, the Basic Chemical Manufacturing industry enjoyed a period of strong demand, particularly from Asia. Innovation in speciality chemicals and sustainability initiatives gained momentum, helping raise profitability. When the pandemic hit, supply chains were greatly disrupted while industrial output stumbled until socially distanced factory guidelines were adopted. As industrial output ramped up, manufacturers' revenue benefited from pent-up demand and government fiscal packages, leading to substantial infrastructure spending and stimulus. Russia's invasion of Ukraine added another spanner to works, though, with energy and feedstuff prices skyrocketing as a result of western countries' sanctions on Russian exports. Production costs escalated and business and consumer confidence was shot by rising living costs, denting demand throughout 2022 and 2023. Profitability has also been hit hard by soaring operational costs, which manufacturers have struggled to pass on to clients.

Trends and Insights

• The effects of the Russia-Ukraine conflict add substantial costs. Many chemicals require oil and gas as inputs, so disruption to the supply of these key commodities has put upwards pressure on production costs.
• Exports are likely to slide as US tariffs make European chemicals less competitive in this market. Basic chemicals face immediate 10% tariffs and a 20% for EU products starting in July 2025. This is likely to hit Germany hardest as the US absorbs nearly a quarter of its pharmaceutical exports.
• Mergers and acquisitions are commonplace. Competition between chemical producers is intense, encouraging them to join forces or look for takeover targets to grab more of the market.