Sustainability is the only and most important challenge for chemical suppliers. Almost all participants started their projects, focusing on reducing their carbon footprint, building a cycle value chain, and using more natural raw materials. This development stems from increasingly stringent regulation and changing customer and consumer requirements. The coronavirus pandemic has strengthened this global trend, leading to a greater focus on health, regional and natural supply. Sustainable development may still be accompanied by the huge transformation of the industry, but sustainable chemicals also open up a huge new market opportunity, paving the way for future growth. However, on the way to promised places, some of the major challenges must be managed.

Sustainability puts the overall business model of chemical suppliers at risk:

Core products such as plastics, specific crop protection products and other products are facing increasing rejection, at least in some cases, with a ban

Other core products, such as additives, are also being observed, as they may hinder better recovery of consumer products or selectively suspect that they have a negative health impact

The need to use more natural raw materials requires a lot of investment in innovation and will lead to partial replacement of the existing value chain

To establish a circular value chain, it is necessary to discuss the product components and formula that harm the intellectual property rights of chemical industry

Customer requirements become more specific, leading to a broader, heterogeneous portfolio, combined with smaller volumes and higher complexity

Without enough green energy supply, reducing carbon dioxide emissions remains a major challenge for an industry that still consumes a lot of energy

Therefore, the industry must carry out self-improvement: new, natural or recyclable raw materials, new production processes and new value chains, new services, new innovation types, new business models

This reset requires significant investment and must be carried out "when the wheels are turning", which means that the core business model must be maintained until the new business generates sufficient sales and profits. Chemical industry is facing the "innovator's dilemma", and every mature industry must deal with this dilemma when developing to new technology.

Because of the high cost of development, high risk and the impossibility of profit for many years, it is still a rational behavior to continue to invest in the old business. This may lead to significant transfers and dilution of efforts, resulting in insufficient investment levels and inability to open up new businesses.

That's why historically, many industries have failed to move forward successfully to new technologies: the companies that make carriages are not car makers, and sailing companies are not steam boats. You may have been doing it all the time.

At present, the next major field test is to shift from carbon driven engine to electric engine in automobile industry. Many old automakers struggle with this technological change because of the innovators' dilemma. Ongoing integration and other developments show that not all companies can survive.

In order to overcome the innovator's dilemma, chemical suppliers can learn from the history.