Last of four parts
Since 2020, China has significantly increased its prominence in the disposable glove industry, emerging as a pivotal player in the global market. This rise is attributable to the needs generated by the pandemic, of course, but also to robust manufacturing capabilities, strategic investments, and evolving global trade dynamics. It has enabled China to showcase aggressive pricing and ramped-up capacity to compete head-on with SE Asia manufacturers.
The country produces approximately 90 billion disposable gloves annually, capturing over 20% of the global market share. Chinese manufacturers benefit from economies of scale, enabling them to produce high volumes at lower costs.
Meanwhile, Malaysian rubber glove manufacturers, which have experienced lower average selling prices caused by intensive competition, may benefit from a trade war and be able to export more to the U.S. in the future. President Joe Biden announced plans to raise tariffs on Chinese medical and surgical gloves from 7.5% to 25% beginning in 2026.
Until Biden withdrew from the presidential race it was likely that tariffs on Chinese goods would rise regardless of who captures the White House this fall. Now all bets are off until Democrats finalize their candidate and determine their policy plans—but we will have to wait and see who’s in charge come January.
While it is too early to determine the precise impact that tariffs on gloves from China will have on the overall market, it will likely lead to higher prices for disposable gloves throughout the industry. Tariffs will likely cause a shift of production between countries, reorganization of supply chains, and greater competition for raw materials and labor at various locations.
AMMEX sources a minimal amount of medical gloves from China in addition to factories in such SE Asia countries as Malaysia, Thailand, Vietnam, and Indonesia. We do not source surgical gloves.
Managing market dynamics
It is difficult to predict with any precision what the rest of 2024 holds, but several factors we described in this update point to potential increases in product costs.
The glove market is stabilizing. Expect disposable glove manufacturers to keep making adjustments in the quest to return to profitability. Rising costs for raw materials and logistics, as well as exchange rates and trade wars, will continue to be a factor.
We remain committed to keeping our clients informed about the latest market changes and prepared for changing market conditions. We also continue to emphasize our core value propositions in every customer interaction:
- Fill rates: AMMEX’s 98%-plus fill rates on our top products are driven by our broad network of manufacturers.
- Quality control: We insist upon 100% in-person factory inspections of every shipment.
- Compliance standards: You can be confident that your gloves are ethically sourced and meet required compliance standards.
- Customer service: Our goal is not only to support the transactional part of the business but also to build long-term relationships with our clients.
Plus, as we’ve noted in the past in our annual report, we remain committed to our sustainability efforts designed to effectively measure and reduced carbon emissions.
Our team at AMMEX is always looking forward to helping you and your customers navigate the disposable glove market.
AMMEX© The Right Glove for The Job™
Download the full Q3 2024 Disposable Glove Market Update.