AmerCareRoyal - Disposable Glove Market Update August 2020

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



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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