ERJ Compounding Survey 2026: On track for recovery

London – While sales of custom compounders of rubber and elastomer materials registered a dip last year, there are signs that markets are now in recovery mode following two years of marked decline.

That’s based on data provided for this year’s ERJ Custom Compounding Survey 2026, including a comparative analysis of sales among respondents that replied to the survey in both this year and last, including Hexpol – the largest player by far – combined 2025 sales declined by 4.3% year-on-year to €2,542.5 million.

Without the Swedish major, sales came in at €934.4 million, 1.3% below the level recorded in the survey last year.

The general decline reflected persisting challenges within the market for customised elastomer compounds during 2025, including a weak automotive market, uncertainty linked to new and emerging EU regulations, and supply-chain disruptions.

On the other hand, respondents to this year’s ERJ survey reported strengthening sales in non-automotive sectors, as well as increasing demand for their technical support services – especially in reformulating compounds to comply with new and emerging EU legislation.

In its full-year 2025 report, Hexpol linked a 6% decline in compounding revenues mainly to currency headwinds. While demand from automotive-related customers decreased, sales to the building & construction, wire & cable and medical segments improved, it noted.

Commenting, Hexpol president and CEO Klas Dahlberg said: “We have thus succeeded in defending our strong market position, especially in rubber compounding.”

However, Dahlberg – who has now left the group – added: “Geopolitical unrest continues to characterise our world, which suggests no general market improvement in the near future.”

Read the full survey report in the July/August edition of European Rubber Journal