Glove Market Update: Factory Utilization Likely to Stay Low Into ’24

Hand formers at a disposable glove factory wait between uses.

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.

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Schematic Floor Plans Can Help Make Glove Sales More Visual, Engaging

Food processor wearing nitrile gloves makes bread.

AMMEX has been selling disposable gloves for 35 years. Questions come up daily about how we help customers find the right gloves for their jobs.

Let’s face it: Disposable gloves are out of the ordinary compared with the staples that industrial distributors carry. We know how surprisingly challenging gloves can be to sell effectively; they have specific attributes and target specific needs, and there can be a learning curve in getting all the details just right. We have many tools that answer many glove questions for you. So instead of researching product specifics, you can focus on pitching, prospecting, and closing.

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On U.S. Shores: Domestic Logistics Further Add to Glove Costs

Driving a truck down an empty highway toward the sunset.

Domestic transportation prices—another important variable in the overall cost of single-use gloves—spiked during the pandemic. They have been dropping, but are unlikely to return to pre-pandemic levels due to the cost of labor and the general impact of inflation and higher interest rates.

Most companies that need warehousing to store imported products, such as disposable gloves, have seen significant price increases over the past two to three years. Even as supply chain inflation slows, warehouse rates are high because there is a lot of inventory, which leaves less space for new product.

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Production Costs Set Foundation for Disposable Glove Pricing

Disposable glove formers hang upside down on a production line.

The three primary variables that have an often outsized impact on the single-use glove market are production, international logistics, and U.S. market conditions. Within those variables are a number of sub-variables that can move in opposite directions and in different timelines.

Production happens primarily in Southeast Asia, where up to 80% of single-use gloves are made. The biggest glove-making countries are Malaysia and Thailand—which have dominated the glove trade for years—Vietnam, and Indonesia. China is also a growing player in the global market.

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Finishing Disposable Gloves: How to Make Them Easy On, Easy Off

Hands pull on disposable gloves.

After gloves go through the production process—formers dipped in solution, dried in high heat, rinsed in a chlorinated solution (in the case of latex), dried again—their interior needs to be finished.

This process makes it easier to pull on and remove gloves. Without interior finishing, gloves can stick to skin and cause a struggle to get them on or off.

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Risk of Latex Allergies Should Drive Your Transition to Nitrile

Dental technician wears nitrile disposable gloves while working.

Latex allergies get a lot of attention, especially in the disposable glove business. An important part of finding “the right glove for the job” is determining whether the person wearing said glove is allergic to natural rubber latex proteins, and recommending substitutes if necessary.

In truth, such allergies are rare. They affect approximately 1 percent of the general population and 8 to 12 percent of healthcare workers. (Latex allergies become more prevalent in people who are exposed to the material regularly, and most medical-grade gloves are made from latex.)

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Disposable Gloves Are Not Designed for Cooking at High Heat

Gloveworks Industrial Vinyl Gloves are great for preparing food, but don't cook with them.

Disposable gloves are an invaluable tool in kitchens around the globe. From making burger patties to mixing salads to plating and serving food, they protect against cross-contamination as well as keeping hands safe from chemicals and cleaning solutions.

We often get questions about the suitability of using disposable gloves over an open flame like a grill. Distributor partners say their customers inquire about using disposables when cooking, and which material is best in those situations.

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