Disposable gloves are an integral part of a PPE kit. Since the beginning of Covid-19, the demand for disposable gloves has increased rapidly. It increases the demand-supply gap significantly in 2020. Hence, it becomes very important to develop an efficient procurement strategy for disposable gloves.
Disposable globes can be categorized into four segments based on the type of raw material used.
Nitrile gloves: It has a high puncture and chemical resistance capabilities.
Latex gloves: It is extremely flexible and has high tensile stretch or the ability to resist tearing.
Vinyl gloves: Vinyl gloves are made from PVC (polyvinyl chloride). It is lightweight and soft, used to handle low heat, such as hot food items.
Poly gloves: These are the least expensive disposable gloves. Majorly used for food applications.
The global disposable gloves market was valued at USD10.2 billion in 2020 and is expected to grow at a CAGR of 9.2% from 2020 to 2027 due to the growing demand for disposable gloves from the healthcare industry during the ongoing Covid-19 pandemic, along with the rising awareness about Healthcare-Associated Infections (HAIs). Natural rubber gloves are the most widely used disposable globes across the world due to their usability in multiple applications like medical & dental, food processing & service, janitorial & sanitation, pharmaceutical, etc. It accounted for more than 30% share in the global disposable gloves industry. North America is the largest geographic segment with over 35% global revenue share in 2020 followed by APAC and Europe.
The raw material cost is the major cost driver of disposable gloves production. Major raw materials include nitrile, latex, vinyl, etc. The cost of raw materials accounted for more than 45% of the overall disposable gloves production cost. Other key cost components include machinery, labor, storage, and distribution cost. These cost components accounted for more than 35% of the overall cost of production. Many suppliers are outsourcing the production to South East Asian Countries due to the availability of raw materials and low labor cost.
In 2019, the annual global demand for nitrile disposable gloves was nearly 300 billion. However, due to the Covid-19 outbreak, the demand almost doubled to 585 billion in 2020. This has shaken global production capacity, which in early 2020 could meet the demand for 370 billion gloves per year. In 2021, the capacity increased by 50 billion, but that still leaves a supply chain shortfall of more than 150 billion gloves. Moreover, the production of key raw materials like latex and nitrile has dropped significantly due to Covid-19 related lockdowns. It resulted in a ~300% price hike of these raw materials.
Ansell Ltd., Top Glove Corporation Bhd,Hartalega Holdings Berhad,Supermax Corporation Berhad,Kossan Rubber Industries Bhd,Ammex Corp., Kimberly-Clark Corp.,Sempermed USA, Inc., MCR Safety, are some of the leading suppliers of disposable gloves. The global disposable gloves market features a moderately fragmented landscape with the top ten players contributing less than 30% of the market share. Industry leaders are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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