First of three parts
The disposable glove market continues to have several unique cost drivers impacting the industry. Factories have reduced the number of production lines from pandemic highs, increasing utilization rates and reducing excess supply. Raw materials, from chemicals to synthetic rubber, are rising in cost. Other drivers, such as labor supply in Southeast Asia, packaging material increases, logistics, and a weakening U.S. dollar, are also playing a role.
As we look toward the rest of 2024 and next year, increased factory utilization rates, raw materials costs, potential tariffs on China, and other factors are likely to push nitrile prices upward. Most of the world’s disposable gloves are produced half a world away, in Southeast Asia—there is no North American production to speak of on any scale.
Global factors, from inclement weather to geopolitical disputes to open warfare, have caused disruptions in the supply chain, which has impacted the production and distribution of disposable gloves.
Plus, tariffs on exam nitrile glove imports from China are scheduled to increase to 50% in 2025 and 100% in 2026, which will impact nitrile disposable glove pricing in general.
The good news is that the global disposable glove market is poised for continued growth—as long as the market continues to need disposable gloves, and the global focus on health, hygiene, and safety is ongoing.
After a couple of years of declining prices for disposable gloves, rising costs for everything from raw materials to logistics are starting to push nitrile prices higher.
Heading into Q4 of 2024, costs for nitrile butadiene rubber (NBR), the primary raw material in manufacturing nitrile gloves, continue to inch up monthly; in the summer of ’24, costs rose approximately 20%. Conversely, costs for natural rubber latex and polyvinyl chloride are on the way down. Considering that nitrile is far and away the most popular material for single-use gloves, buyers should be prepared for nitrile gloves to cost more in Q1 of 2025.
There will continue to be further disruptions in the market next year that will affect both supply and costs. AMMEX will keep you informed on what to expect moving forward.
Read our full Market Update for Q4 of 2024.