Chemical industry has been stagnating for many years. Long term trends are analyzed. There exists a potential for growth.We have identified market segments that are growing faster than other segments of the chemical industry. These were presented in 3 groups of potential areas for growth for the Israeli chemical industry:1) Families of intermediate: Synthesis gas and methanol, derivatives of chlorine, sulfur, ethylene, propylene, benzene and xylene.2) Specialties: flame retardants, catalysts, food additives, advanced ceramics, plastics, composites, drugs and detergents.3) New technologies with advantages of innovation: environmental control, controlled release, superconductors, membranes, biotechnology, ozone chemistry, halogenations, cyanide chemistry and supercritical technology.