From specialty materials to sustainable innovation, these 5 stocks are driving growth in 2025
The global chemical industry in 2025 is showing strong signs of recovery after a few years of slowdown. Driven by global demand, technological innovation, and sustainability trends, many companies are now on a growth path. While some large players dominate headlines, several lesser-known companies, or “hidden gems,” are quietly gaining momentum and delivering solid returns.
Here are five chemical companies that are playing a key role in the sector’s growth in 2025:
DuPont de Nemours (Stock Price: $71.45)
Why it’s a gem: DuPont is one of the oldest names in the chemical industry, but in recent years, it has shifted its focus to specialty chemicals. These are chemicals used in electronics, automotive, construction, and personal care industries that are expected to grow strongly in 2025.
Recent developments: DuPont has been selling off some of its non-core businesses to concentrate on high-margin segments like advanced electronics and water filtration. This move is helping the company improve its profitability and simplify its operations.
Growth outlook: As demand for electric vehicles, semiconductors, and smart technology rises, DuPont’s specialized products are becoming more important. The company is also generating strong free cash flow, which supports further investment and innovation.
LyondellBasell Industries (Stock Price: $61.20)
Why it’s a gem: LyondellBasell is a global leader in plastics, chemicals, and refining, and it benefits from a strong presence in the United States. One of its biggest advantages is access to cheap natural gas in the U.S., which helps reduce production costs compared to companies in Europe or Asia.
Recent developments: In 2025, the company saw strong performance due to better energy pricing in North America. Analysts have noted that it is in a much better position than its European competitors, who are facing high energy bills.
Growth outlook: As industrial demand continues to bounce back post-pandemic and due to restocking in global markets, LyondellBasell is set to benefit. The company is also returning value to shareholders through share buybacks and a dividend yield of over 10%, making it attractive for income-focused investors.
PPG Industries (Stock Price: $116.41)
Why it’s a gem: PPG is a global leader in paints, coatings, and specialty materials. The company serves major industries like automotive, aerospace, and construction. These sectors are slowly recovering, especially in North America and Europe, and PPG is expected to benefit from this uptrend.
Recent developments: After facing supply chain issues and high raw material costs, PPG is now managing these challenges better. It has stabilized operations and improved its cost structure. Its performance in automotive coatings and industrial applications is showing clear signs of improvement.
Growth outlook: With infrastructure upgrades happening globally and rising demand for home improvement products, PPG’s coatings business is well-positioned. Its consistent capital spending and stable dividend make it a solid long-term performer.
Eastman Chemical Company (Stock Price Range: Estimated $100–$116)
Why it’s a gem: Eastman is focusing heavily on specialty chemicals and sustainable materials. Over 60% of its revenue now comes from high-margin specialty products. The company is making big investments in recycling and circular economy projects.
Recent developments: Eastman is a leader in a process called “methanolysis,” which breaks down plastic waste to make new, high-quality plastics. This technology is seen as a game-changer in the shift toward sustainable manufacturing.
Growth outlook: With governments and industries worldwide trying to reduce plastic waste, Eastman is in a strong position. The company expects to generate over $1.2 billion in cash flow this year, which supports innovation and shareholder returns. Analysts believe the stock has significant room to grow over the next 12 to 18 months.
Westlake Chemical Partners (Stock Price Range: Estimated $24–$28)
Why it’s a gem: Westlake Chemical Partners is a master limited partnership (MLP) that produces and delivers ethylene, one of the most important building blocks for chemicals and plastics. It has long-term contracts with its parent company, Westlake Corporation, which reduces market volatility.
Recent developments: Despite ups and downs in global commodity prices, Westlake Chemical Partners continues to generate stable cash flows. The company’s structure and contract terms protect it from sharp price swings, making it a safer investment in a cyclical industry.
Growth outlook: As demand for basic chemicals increases, Westlake’s infrastructure and reliable earnings model make it a standout. Its steady dividend and low debt levels offer additional comfort to investors.
Key Trends Supporting These Stocks
1. Industry Recovery in 2025
After a slow 2023 and a mixed 2024, the chemical sector is now growing. Global chemical production is expected to rise by 3.5% in 2025, thanks to improved global trade, better supply chains, and growing demand in areas like agriculture, construction, and clean energy.
2. Energy Prices Favor U.S. Companies
U.S.-based companies are benefiting from lower energy costs, especially compared to European producers. Natural gas prices in Europe are still 4–5 times higher than in the U.S., giving American chemical firms a major cost advantage.
3. Sustainability Push
Governments and companies are focusing more on sustainable production. This includes reducing carbon emissions, recycling plastics, and using eco-friendly materials. Companies like Eastman and DuPont are investing heavily in such technologies.
Risks to Watch
While these stocks have strong potential, there are a few risks:
Cyclical demand: The chemical industry often moves in cycles. If demand in key sectors like automotive or construction slows down, earnings may be affected.
Regulations: Environmental and safety regulations are getting stricter. This could lead to higher compliance costs, especially in developing markets.
Geopolitical tension: Conflicts, trade barriers, or changes in government policies can disrupt supply chains and affect exports.
Energy price spikes: Although energy costs are currently favorable in the U.S., any sharp increase could hurt profit margins.
Summary Table: 5 Hidden Gems in the Chemical Sector
|
Company |
Stock Price |
Key Strengths |
Growth Drivers |
|
DuPont |
$71.45 |
Specialty chemicals, strong cash flow |
Electronics and EV materials |
|
LyondellBasell |
$61.20 |
U.S. energy advantage, high dividend |
Cost edge over European peers |
|
PPG Industries |
$116.41 |
Paints and coatings, global demand |
Industrial and automotive recovery |
|
Eastman Chemical |
~$100–$116 |
Recycling, circular economy focus |
Global sustainability trends |
|
Westlake Partners |
~$24–$28 |
Stable contracts, consistent cash |
Ethylene demand, yield-focused structure |
Final Thoughts
The chemical sector is full of opportunities in 2025, especially for companies that focus on specialty products, energy efficiency, and sustainability. DuPont, LyondellBasell, PPG, Eastman, and Westlake Partners are five hidden gems that are showing strong performance, steady growth, and resilience in changing market conditions.
These companies are not just surviving in a competitive market—they are adapting, innovating, and thriving. Their long-term strategies, solid financials, and growth potential make them worth watching in the months ahead.
