Every quarter, AMMEX examines the impacts of key drivers on the disposable glove market.
The market, and the aspects of distribution surrounding it, are extremely nuanced. We don’t have a crystal ball, so we’re not telling you what will happen. We’re not even trying to make predictions—our goal is to highlight the primary factors influencing the market.
The true impact of these factors will not be available until later. It’s like driving a car without headlights on at 100 mph on a dark freeway. By the time you’ve recognized that something has happened, it’s already past.
The big 3 market drivers
For this quarter, we believe three main drivers will make the most impact: inventory, logistics, and rates of utilization, or production capacity. You can read more detail on each of these factors in our Q4 Market update here.
The inventory question is not easy, especially involving large enterprise accounts. During the pandemic, many distributors bought disposable gloves at inflated prices because they needed product of any kind to meet demand. Now they must clear out the excess. We expect this to work out, but it will take time.
Logistics costs and the impact of inflation will continue to trickle down in coming months. Both ocean and domestic shipping expenditures can fluctuate wildly. With no sense of a stabilized market arriving anytime soon, it’s likely that the start of 2024 will resemble most of 2023.
Factories will pick it back up
Factory utilization rates are at the lowest ever. With fewer gloves produced until excess product is gone, we can expect short-term turbulence before the market finds equilibrium again. This will not be that way for long, however; manufacturers are actively working on correcting it.
We will continue to highlight the main trends in the disposable glove market. If you would like to see our reports from past quarters, they are available here under Market Updates.