Innovating Without Losing Profitability: The New Imperative for Latin America’s Chemical Industry

In 2026, chemical and downstream manufacturing industries across Latin America face a dual challenge:

Meeting increasingly strict regulatory and environmental requirements.
Preserving operational profitability in a demanding economic climate.

The pressure to innovate is real—and so is the risk that innovation may squeeze margins. At Grupo Mathiesen, we understand this from daily practice across more than 16 countries in the region.

Does innovation mean losing margin?

A 2025 McKinsey report shows that:

65% of industrial companies are reformulating products due to environmental or regulatory pressures.
Yet 58% acknowledge negative impacts on margins as a result of those changes.

The dilemma is clear:
How can companies innovate without compromising performance, costs, or supply stability?

Chemical innovation as a strategic solution

Today, there are technologies that enable progress on sustainability without sacrificing performance or economic efficiency—and they are available to industries such as:

Coatings:
Low-VOC, water-based, or heavy-metal-free resins that match or outperform technical requirements.

Construction:
Multifunctional additives that reduce formulation complexity and lower the number of SKUs.

Agrochemicals:
Greener solvents, biocompatible surfactants, and optimized formulations designed for lower environmental impact and high effectiveness.

Textiles:
Technologies that combine sustainability with functionality (durability, elasticity, repellency, and more).

Real cases: reformulating with positive impact

Central America: An architectural paints company replaced a regulated solvent with a safer alternative—without affecting coverage or drying time—while maintaining its cost structure.

Colombia: An adhesives manufacturer replaced three inputs with a multifunctional additive, reducing waste and increasing line productivity.

Chile: In the agrochemical sector, a customer optimized an emulsion using a technical surfactant that improved formulation stability while meeting new international standards.

What made the difference?

In every case:

There was local technical diagnostics.
Specific, not generic, solutions were tested.
Work was supported by stable supply and end-to-end technical assistance.

Because innovation isn’t just about switching a product—it’s about managing technical, commercial, and logistics risk with a strategic mindset.

Grupo Mathiesen: innovation with backing

With a presence across Latin America, we support our customers with:

An up-to-date portfolio aligned with global standards
Field technical support
Strategic partnerships with leading manufacturers
Regional stock and market-adapted logistics

Conclusion

Innovation is no longer optional—it’s a necessity.
But it doesn’t have to compromise profitability when it’s done with the right vision, data, and partner.

Are you evaluating a reformulation or a technical upgrade in your processes?