Challenges and Opportunities During the Transformation Process in the Petrochemical Industry

Europe’s petrochemical industry faces cost, capacity, and climate pressures. Through integration, collaboration, and innovation, Europe has a chance to reinvent itself for a net-zero world and to turn challenges into opportunities.
Sept. 3, 2025

Europe’s petrochemical industry faces structural pressures: stagnant demand, cost disadvantages and rising decarbonization demands due to the EU Green Deal. Heavy reliance on naphtha has reduced competitiveness, while geopolitical issues expose energy vulnerabilities. Yet, integration and co-product utilization remain strengths. Evonik Oxeno’s C4-Verbund network exemplifies this resilience, turning by-products into value, securing supply chains and enhancing the robustness of value chains. Future European competitiveness hinges on cost-reduction, feedstock innovation, carbon-smart investments and collaboration across value chains.