Analysis: Will the glove market rebound from slowed demand?

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-19 crisis eases and output from new capacity projects starts to kick in.

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 seems 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) said that "the next six-to-nine months will be difficult in terms of capacity utilization and average selling prices."

However, figures issued Aug. 3 by the industry body show exports continuing to track upwards, with an annual rate-of-increase of 10 percent 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 percent of global output, or 240 billion gloves, will be produced in Malaysia, followed by 20 percent in China, 10 percent in Thailand and 3 percent in Indonesia.

Over the coming years, MARGMA forecasts "ever increasing" demand for rubber gloves in applications, including medical and dental, pharma and lab, food Industry, electronics, industrial, and janitorial and household.

Among the main market drivers, it noted, will be growing affluence, demographic trends, stricter regulatory requirements, personal behavior changes, corporate policies and government stockpiling.