Analysis: Gloves market poised to snap out of current crisis?
4 Aug 2022
Some market fundamentals point to a possible recovery as early as next year...
London - Having been buoyed by massive increases in demand due to the global pandemic, the latex gloves market is currently in retreat as the Covid crisis eases and output from new capacity projects starts to kick in.
As previously reported by European Rubber Journal, the volatile scenario has left gloves manufacturers on a rollercoaster ride, with share prices currently in sharp decline from the record levels seen just a few months ago.
At first glance, at least, it would seem that the market is in for a lengthy period of decline due to overcapacity and low selling prices for producers, based mainly in Malaysia, Thailand and Indonesia.
On the other hand, some of the gloves market fundamentals point to a possible recovery from the current crisis as early as next year and, indeed, sustained, solid growth over the coming years.
With “sufficient gloves” now in the supply pipeline, the Malaysian Rubber Gloves Association (MARGMA) admits that “the next six-to-nine months will be difficult in terms of capacity utilisation and average selling prices.”
However, figures issued 3 Aug by the industry body show exports continuing to track upwards, with an annual rate-of-increase of 10% to 2030 and beyond.
The Malaysia association estimates global demand at 399 billion gloves this year, equating to 12,622 gloves being used every second around the world.
In 2022, around 65% of global output, or 240 billion gloves, will be produced in Malaysia, followed by 20% in China, 10% in Thailand and 3% in Indonesia.
Over the coming years, MARGMA forecasts “ever increasing” demand for rubber gloves in applications including: medical & dental, pharma & lab, food Industry; electronics, industrial, janitorial and household.
Among the main market drivers, it noted, will be: growing affluence; demographic trends; stricter regulatory requirements; personal behaviour changes; corporate policies; and government stockpiling.
We will report further on this topic in the September/October edition of European Rubber Journal magazine.