Glove Market Update
Elevated demand and limited manufacturing capacity have resulted in product shortages and significant price increases
Supply Update
Demand Update
▪ Availability of Nitrile and Latex gloves remains highly constricted, and costs have increased 5-15% per month
▪ Pandemic-driven demand for Nitrile, the most popular type of disposable glove, is still exceeding industry manufacturing capacity, an imbalance that will likely continue through Q3 2021 ▪ Latex is filling the void, though not perfectly due to raw material constraints and allergy concerns - Vinyl glove supply is stable
▪ Manufacturing executives in Asia have expressed concern about resurgent Coronavirus impact on factory productivity
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▪ Vaccine rollout is will contribute to keeping glove demand high
Of particular concern are Chinese New Year travel and gatherings that will drive virus spread
▪ Cost for manufactured gloves have risen 2 to 3 times pre- Coronavirus levels ▪ Instances of fraud have risen as speculators and new, sometimes desperate buyers have intersected in the market
▪ Leading glove manufacturers have reported further outbreaks at plants in January
▪ Meaningful capacity of vinyl and hybrid gloves has started to come online in China
Glove Market Timeline
May/June/July
Q1 2021
Late Summer & Fall
Q4 2020
• Preparations for 2 nd wave of the virus in Fall drive continued demand
• Elevated demand will continue into 2021
• Demand increases exponentially
• Ocean freight constrained, spot-market pricing
• Lack of new capacity being added to satisfy new normalized demand • Prices will remain above historical levels thru Q3 • Challenging payment terms from glove manufactures.
• Factories raise prices as demand exceeds supply • New market participants enter further driving up prices
• Vinyl raw material availability stabilizes
• Raw material shortages
• Aggressive price increases and long lead times (12 Mo.) • Factories selling out capacity to highest bidder
• 60 Minutes profiles glove supply chain fraud • Pace of supplier price increases ramps up
• Prepayment requirements
Glove Prices
1. Allied Market Research
Low High
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