Most disposable glove factories prefer to run their production lines almost non-stop to make money, in a concept known as factory utilization. It is common that a factory needs a 50% utilization rate to break even.
Throughout 2023, factory utilization rates for most of the disposable glove industry have been well below 50% because of massive capacity added during the pandemic and high excess inventory amounts at the end-user level.
For example, Top Glove, one of the world’s biggest producers of disposable gloves, planned to double its annual capacity from 100 billion pieces to 201 billion by 2025, but scaled back expansion plans as its utilization rates hit below 30%.
Many industry insiders predict the utilization rate to bounce back to around 50% or higher in 2024-25. Long-term industry prospects look fine, but there is plenty of short-term turbulence ahead.
Economic challenges in China are adding to the complexity of the situation. Whereas Malaysia and Thailand have dominated glove production for decades, China has emerged as a major player in the glove market. The economic slowdown in China may have a yet undetermined negative impact on glove production, possibly forcing Chinese manufacturers to cut capacity and raise prices.
Looking ahead to next year
As 2024 gets closer, the disposable glove market continues to work itself out. Manufacturers, despite their gripes about profits perhaps not being where they would like, are settling in for the long haul.
Inflation and the threat of recession will continue to exert major influence. Transportation, especially on the domestic front, promises a bumpy ride, with inconsistent energy costs paving the way.
AMMEX continues to think long-term. Our focus is on helping clients mitigate all types of challenges in the single-use glove market.
We help ensure product quality and consistency with 100% in-person inspections of all shipments. Our dedicated local team reviews each order at the factory level.
These fill rates are tough to beat
We offer 98%-plus fill rates on top products to help ensure that our partners can get the glove they want when they need it.
We provide unmatched service and support. Our team moves quicker than competitors and has robust systems and processes in place to support clients of various shapes and sizes.
We ensure high levels of ethical sourcing and compliance. Our broad network and expert team help meet or exceed all established industry standards.
AMMEX has been providing the products and support necessary to grow clients’ single-use glove sales for more than 35 years. What matters most to us? Helping you select the right glove for the job.
Click here to read our full Q4 Market Update at ammex.com