Chemical industry leveraging $14 tn in stimulus to ‘build back better’
October 7th, 2020
$7 trillion. That’s how much the IMF estimates has been lost in global GDP due to the Covid-19 pandemic. So far, the response has been impressive with governments committing $15 trillion in COVID-19 stimulus packages. While pandemic has affected every industry and fundamentally changed how we live, buy, and think, its effect on the chemical industry has been a mixed bag. On one side, the pandemic has exacerbated an already established trend beginning in 2018, of lower YoY growth in the segment. On the flip side, massive stimulus packages have created powerful consumption engines which have largely benefited the industry. Moreover, the chemical industry’s unique position in the supply-chain enables it to supply raw materials to downstream sectors (including food, healthcare, construction, consumer goods, agriculture, and transportation) to produce over 70,000 different products. In addition, people’s buying habits are shifting. Accenture estimates that 79% of consumers now favor healthier and environmentally sustainable products — and are willing to pay a premium for them. The chemical industry is in a unique position to invest in “build back better” initiatives focused on improving supply-chain resilience and stakeholder collaboration.