Article

The Polish chemical sector – exports drive development

02.07.2025

The Polish chemical sector is a pillar of the economy, generating 20 percent of the added value of industrial processing. The dynamic growth of exports, especially cosmetics and household chemicals, strengthens Poland’s position in the EU, although the trade deficit and energy costs remain challenges.

The Polish chemical sector plays a significant role in our economy – in 2024 it employed over 300,000 people and generated nearly 20 percent of the added value of industrial processing. In a narrow perspective (PKD 20 – production of chemicals and chemical products), it accounts for 5 percent of sold production, ranking seventh among the processing industries. In a broader perspective – including plastics, rubber products, fertilizers, refinery products and pharmaceuticals – it is becoming a leader in the sector. Its driving force is exports, especially in the segment of consumer chemicals, such as cosmetics and detergents.

The Sector’s structure: specialization in consumer chemicals

The Polish chemical sector specialises in consumer chemicals, which in 2023 accounted for 22 percent of the production value (PKD 20), compared to 15 percent of the EU average. Cosmetics, detergents and household chemicals are areas in which Poland is a regional leader. The other segments are:

• basic chemicals – 19 percent,
• plastics in primary forms – 17 percent,
• paints and varnishes – 10 percent,
• fertilizers and plant protection products – 11 percent.

Bank Pekao’s data shows that in 2019-2023, the production of cosmetics grew at a rate of 14percent per year, and household chemicals – 10 percent. These segments have shown resilience to the economic downturn, unlike bulk chemicals such as fertilizers (-36 percent) or basic chemicals (-32 percent), which have suffered from high energy costs.

The chemical sector is also a leader in environmental investments, accounting for more than 20percent of processing expenditures on green installations in 2024, reflecting the adaptation to EU regulations.

Exports: the driving engine of the chemical sector’s growth

Exports are an important driver of the Polish chemical sector. In 2024, its value increased by 15 percent compared to 2021 and by 53 percent compared to 2019. This increase was mainly due to the price effect – in volume terms, exports increased by 15percent from 2019. The most dynamic export segments are:

• cosmetics and household chemicals – growth of 36percent between 2021 and 2024,        with a 9.2percent share in intra-EU trade in 2024, especially in Central and Northern Europe;
• pesticides and agrochemicals – up 47percent, driven by demand in Central and Eastern Europe;
• paints and varnishes – up 12percent, supported by the construction and industrial sectors in the EU.

Bulk chemicals, including fertilizers (-10percent) and plastics (-1 percent), have seen exports stagnate or decline due to competition from non-EU markets. Poland increased its share in the EU’s trade in chemicals from 4.2 percent in 2021 to 4.5 percent in 2024, especially in pesticides (+1.4 percentage points) and cosmetics (+0.3 percentage points).

Trade balance: the problem of the deficit

Despite its export successes, the chemical sector is struggling with a trade deficit that exceeded €14 billion in 2024, placing Poland in second place in the EU after Italy. The main causes are:

• import of plastics in primary forms, key for the packaging and automotive industries;
• dependence on imports of basic chemicals from Germany, Belgium and Asia;
• imports of fertilizers and plant protection products, despite domestic production.

Poland achieves a trade surplus in cosmetics and household chemicals. The trade deficit grew by €1.5-2 billion annually between 2019 and 2024, which is due to growing domestic demand and the lack of a raw material base.

Financial health: mixed results

In 2024, the net profitability of the chemical sector (PKD 20) fell to 3.6 percent from 8.6 percent in 2021. The most profitable segments are:

• paints and varnishes – 8.7 percent,
• household chemicals – 7.0 percent,
• cosmetics – 6.5 percent.

The weakest results were recorded in fertilizers (-8.7 percent) and organic chemicals (3.1 percent). In 2024, one in five chemical companies incurred losses, especially in fertilizers (41percent). The sector’s liquidity remains stable (CR 1.53), but the investment rate fell to 115percent in 2024 from 190percent in 2022.

Challenges and opportunities for exporters

The Polish chemical sector is facing challenges that may affect its exports:

• energy costs – high gas prices reduce the competitiveness of mass chemicals;
• environmental regulations – the CBAM mechanism increases costs, but opens up opportunities for investment in green technologies;
• trade deficit – investments in the synthesis of chemicals can reduce import dependency;
• low level of R&D – more research expenditure would increase innovation.

The outlook is optimistic thanks to the forecast growth of Poland’s GDP in 2025-2026 and the recovery in the Eurozone. Infrastructure megaprojects such as the CPK can drive demand for paints and inorganic chemicals.

Sources:

• Bank Pekao – W poszukiwaniu „zielonego środka”. Aktualna sytuacja, wyzwania i perspektywy sektora chemicznego w Polsce
• European Commission, Industry and the Green Deal
• European Commision, Carbon Border Adjustment Mechanism