Editorial
The global chemical industry is facing a defining challenge: the urgent need to shift away from fossil carbon feedstocks. By 2030, the demand for alternative carbon sources is expected to hit a staggering 590 megatons. Right now, the industry is exploring a mix of solutions—from recycling and biomass to carbon capture. But each of these alternatives has its own limitations.
European chemical manufacturers are navigating rough waters. Since 2002, their market share has halved, capacity utilization remains critically low, and rising energy costs paired with weak demand are further eroding competitiveness—issues likely to persist this year. But how does this compare globally? And what innovations could reshape the industry?
In this edition of This Week in Consulting, we’re diving into the trends that will shape the chemical industry’s path forward.
The shift toward sustainable and digital practices is accelerating, especially in specialty chemicals, bringing both innovation and new risks. Beyond these hurdles, there are some exciting opportunities on the horizon. From breakthroughs in chemical processing to AI-driven discovery, innovation is transforming what’s possible in the industry.
Dive in for a comprehensive look at the trends, challenges, and breakthroughs shaping the chemical industry today. And don’t forget to share your thoughts—we’re all ears!
Laurent THOMAS
Chairman Consulting Quest
This week’s must read
In this edition of This Week in Consulting, we dive into the trends, challenges, and bright spots shaping the future of the chemical industry.
This article by L.E.K. Consulting highlights the specialty chemicals industry’s shift towards sustainability and digital transformation. Driven by megatrends and market demands for green solutions, companies are investing in supply chain optimization and digital tools to address key challenges. To read the full article, click below.
This week’s media
In this insightful video from The Chemical Show, host Victoria Meyer explores six pivotal trends poised to impact the chemical industry through 2024 and 2025. Discover what lies ahead for the sector and prepare for change. Watch the full video for insights!
Thought Leadership
This piece by Alvarez & Marsal outlines the prolonged challenges facing European chemical manufacturers, with market share halving since 2002 and capacity utilization critically low. High energy costs and low demand compound competitiveness issues, suggesting further difficulties this year too.
This Accenture article explores the pressing need for cybersecurity in the chemical industry, where operational technology (OT) systems are highly vulnerable. By improving OT asset visibility, enhancing governance, and addressing IT-OT gaps, companies can better safeguard assets, employees, and production.
This article by Roland Berger highlights the chemical industry’s need to replace fossil carbon feedstock, projecting 590 megatons by 2030. Current solutions include recycling, biomass, and carbon capture, but each faces significant challenges, requiring accelerated technological and infrastructural advancements for sustainability.
This article by McKinsey explores the chemicals industry’s need for innovation to address global challenges. Surveying industry leaders and start-ups, McKinsey highlights opportunities in chemical process and AI-driven discovery while encouraging collaboration to overcome barriers to sustainable growth.
This week’s consulting news selection
Haselhorst Associates merges with H&Z Group, combining expertise in restructuring, digitalization, and transformation. The alliance enhances consulting capabilities, creating synergies to deliver sustainable, client-focused strategies for long-term success.|
Kerv has acquired consultancy Inciper, bringing 75 experts to enhance Kerv’s expertise across Microsoft Dynamics 365 applications, enabling transformation for mid-market, large enterprises, and Public Sector clients.|
RSM US and RSM UK pursue a merger to form a partner-owned, transatlantic firm, enhancing global client services with 23,000 professionals and $5 billion in annual revenues.|
Elixirr acquires Hypothesis, enhancing its research-driven strategy capabilities. Hypothesis’ expertise and premium clients in consumer, tech, and entertainment sectors complement Elixirr’s established digital, AI, and innovation offerings.|
Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.
