[News Space=Reporter seungwon lee] In 2025, the global chemical industry is facing an increasingly fierce competition between transformation, technological innovation, and eco-friendly future strategies of large corporations amidst a stagnant global economy and the whirlwind of restructuring.
According to the "2025 Global Chemical Company Rankings" released in July by C&EN, an affiliate of the American Chemical Society, Korea's LG Chem ranked 7th and Lotte Chemical 24th, placing them among the top 50 global chemical companies. This means they have joined the "top 0.1% club" among thousands of chemical companies worldwide.
Among the top 10 global chemical companies by sales in 2025, Germany's BASF still holds the top spot. China's Sinopec follows suit, taking second place.
The 3rd place went to Dow from the US, 4th to PetroChina, 5th to ExxonMobil, 6th to SABIC, 7th to LG Chem, 8th to LyondellBasell Industries, 9th to INEOS, and 10th to Linde.
Korean companies demonstrate global competitiveness amid uncertainty.
LG Chem ranked 7th in 2024 with sales of $35.9 billion (approximately KRW 49.6 trillion). Despite falling three spots from fourth place the previous year due to lower-than-expected growth in electric vehicle battery materials (e.g., cathode materials), the company continued to pursue structural innovation centered on a shift from traditional petrochemicals to advanced materials and an eco-friendly platform.
Operating profit increased by 68.9% year-on-year (as of the first quarter of 2025), and it is assessed that "the increase in the proportion of high-value-added, electronic, and engineering materials is driving profits."
Lotte Chemical ranked 24th with projected sales of $15 billion (KRW 20.7 trillion) in 2024. It rose one spot by strengthening its Asian operations (including the establishment of a cracker in Indonesia) and strengthening new ESG-based businesses (ammonia decomposition, recycled plastics, etc.). The company's restructuring of its non-core overseas businesses, including PTA and synthetic rubber, and its business portfolio restructuring drew attention.
Global Chemical Industry Trends and Implications
Traditional powerhouses such as Europe and Japan are undergoing large-scale restructuring due to the burden of fixed costs and sluggish demand.
BASF, Dow, SABIC, and Mitsubishi have closed European plants and are responding with downsizing. Chinese companies are experiencing a slowdown in their explosive growth. Only a few, like Sinopec, are making progress, while Luxi, Hengli, and Dongfang Shenghong are stagnating. Oversupply, global trade barriers, and declining profitability are the primary reasons for this decline.
Growth was also notable in advanced, high-value-added sectors such as specialty chemicals and biomaterials. DSM-Firmenich of the Netherlands rose from 36th to 29th place thanks to a recovery in profitability in specialty chemicals, while Asahi Kasei of Japan saw a 100% increase in operating profit.
The combined sales of the world's top 50 chemical companies amounted to approximately RMB 7.55 trillion (approximately $1.06 trillion), a decrease of only about 1.0% year-on-year.
Korean companies are at a turning point with a shift to high-value-added businesses, ESG management, and global expansion. However, they also face challenges such as electric vehicle inventory adjustments and demand uncertainty.
An expert in the chemical industry said, "It is difficult to enter the top 0.1% in the world, but the global chemical industry in 2025 is one in which survival is not guaranteed without restructuring and eco-friendly and high value-added innovation," and evaluated, "Korean chemical companies are further elevating the status of their domestic industry on the global stage through strategic transformation."
