Glove Capacity Update We believe the glove supply / demand imbalance will persist throughout 2021 Current global glove demand estimated at approximately 585 billion gloves annually compared to existing glove capacity of approximately 370 billion gloves Given long lead times and capital requirements for new manufacturing capacity, only ~50 billion of incremental glove capacity expected to be added in 2021 (well below current 215 billion supply shortfall) Top Glove headline adds potential supply constraint in the near to medium-term While a vaccine will help mitigate the demand side of the equation eventually, a structural step-up in glove usage is expected to persist particularly as the gap between developed and emerging country glove consumption narrows Lead times have extended to nearly 12 months for certain glove types compared to 1-2 months pre-COVID These estimates lead us to believe glove prices will continue to increase for the rest of this year and into 2021
Glove Supply/Demand Imbalance Outlook
Supply
Demand
New Hygiene Protocols and Glove Applications
~585 Billion Current Glove Demand
~165 Billion Supply Shortfall
Governments & Health Systems Continue to Stockpile PPE
Glove Capacity Added in 2021
~50 Billion
Raw Material Shortages
~370 Billion Current Capacity
Limited New Capacity Being Added
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