First of four parts

In a unique way, the disposable glove market continues to work through an interesting set of circumstances initiated by the pandemic. The devil is always in the details and involves looking at operational factors beyond simple price comparisons.

While disposable glove factories produce ample supply and continue to optimize their utilization rates, they face challenges with labor, raw materials cost, inflation, and operations. Coupled with logistical challenges, increased competition, and declining profitability, these factors make the single-use glove market less predictable.

Also, prices at the end user level, especially in the United States, continue to be elevated across many channels, as multiple outlets have become accustomed to higher margins from their glove business. This dynamic creates churn and disconnects throughout the distribution chain, from factories to end users.

The good news is that the global disposable glove market is poised for continued growth—people continue to use more disposable gloves. We expect the challenges outlined above to continue to normalize over the next 12 to 18 months.

The bounce back will continue

Industry observers have pointed to the end of 2023 as the potential low point in the market at the factory level. In 2024, they see utilization, margin, and volume upside across the industry. Manufacturers in China have ramped up production post-pandemic to gain market share, so volume is expected to rise before prices.

In the near term, while manufacturing costs for nitrile gloves in Asia have leveled off, selling prices in the U.S. remain dynamic, reflecting variances in quality standards, country of origin, and ongoing efforts by sellers to manage excess inventories.

Excess inventory in the U.S., which deflated demand throughout 2023, is expected to be less of an issue in 2024. Demand from U.S. customers has improved as excess inventory was mostly cleared in the past year.

Download AMMEX’s entire Q2 Disposable Glove Market Update.