Now that 2024 has arrived, we’re a year further from the pandemic. Multiple trends are continuing to impact glove market conditions, from pricing of NBR (nitrile butadiene rubber) and PVC (polyvinyl chloride) to logistics, energy, and coal prices.
Overall, disposable glove use in the United States continues the upward trajectory it has been on since the 1980s. The market is projected to experience healthy growth throughout the next decade, again proving to be an excellent business opportunity.
Spot pricing for NBR has increased by about 15% in recent months, and further upward pressures are likely in Q1 of 2024. PVC pricing increased by 16% in Q4, and raw material supplies remain tight, pushing vinyl glove prices higher.
The battle of rising costs
The cost of energy, specifically gas and coal, continues to be important in glove production. While the price of coal is stable for now, the cost of natural gas is projected to rise in Q1 of 2024. The cost and availability of raw materials for packaging continue to be tight and will likely stay that way through Q1 due to the Chinese New Year, which will shut down production in China for two weeks or more beginning Feb. 10.
At the same time, the inflation worries that hung over the U.S. economy since early 2021 appear to be lifting. Inflation does remain above the Federal Reserve’s 2% target but will likely continue falling into 2024.
Growth may even pick up in the second half of the year as the Federal Reserve is expected to cut interest rates. For now, the U.S. dollar is strong—meaning glove prices are lower—although predictions for the second half of 2024 are not as optimistic.
Short-term volatility will always be part of the potential picture when it comes to disposable gloves, as the sheer number of factors affecting glove pricing is an ongoing challenge.
Be sure to check out our full Disposable Glove Market Update for Q1 of 2024.