511 - Market Update Q1 2021

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

▪ 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


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


Made with FlippingBook - professional solution for displaying marketing and sales documents online