German rubber industry fails to reverse course: 2025 still in decline

Germany’s rubber industry is struggling to reverse course. In 2025, sector output and employment fell for the fourth and fifth consecutive year, respectively. This is the picture emerging from figures released by WDK, the German Rubber Industry Association, which show that total industry output stood at 1,030,000 tonnes last year, down 6.4% on 2024, while the workforce declined to 60,600, a 3.8% drop year on year. Compared with 2024, overall capacity utilisation reached 77.3%, a slight increase of 0.9 percentage points. Investment also edged up, totalling 760 million euros, up 2.7%. By contrast, turnover fell sharply to 10.45 billion euros, an 8% decline compared with 2024.

According to the association’s data, demand for rubber products “Made in Germany”, once highly sought after, is weak both domestically and internationally. “Even in the domestic market, traditionally dominated by national suppliers, we are seeing unprecedented shifts in market share. Tenders for industrial rubber products are currently being awarded almost exclusively on the basis of cost factors. This stands in stark contrast to the previously prevailing order patterns driven by quality,” explained Michael Berthel, WDK’s Director of Economics, also pointing to fierce international price competition. In this environment, mid-sized German quality suppliers are finding it increasingly difficult to compete: location-related energy, administrative, tax and labour costs are simply too high.

“German rubber-industry companies are therefore being forced to escape domestic cost pressures and shift investment abroad. And this is happening despite having no intention of severing ties with Germany. In recent years, they have completed the strategically necessary restructuring of their operations and want to turn the tide in Germany,” Michael Berthel said.

WDK President Michael Klein used the opportunity to urge the federal government to act as a matter of urgency. He stated that “the poor framework conditions for German industry are well known and widely discussed. What we need now is clear political support to stimulate demand and improve German and European competitiveness. Not the day after tomorrow, not tomorrow, but today. The German rubber industry is indispensable in healthcare, infrastructure, safety and mobility. We cannot allow it to disappear.”