Since the outbreak of the COVID-19 pandemic, global demand for masks, gloves, protective clothing, etc. has surged, leading to a severe shortage of personal protective equipment. To promote the market development of the glove industry and ensure an upstream and downstream supply balance and stable production by factories, organized by Yimao and in collaboration with national protective equipment enterprises,2022year7month7 - 9Held in Qingdao, Shandong Province2022(Tenth) International Hand Sanitization and Protection Products Fair Frost & SullivanFrost & SullivanLiu Weiqi, Executive Director of Frost & Sullivan's Greater China Region, was invited to attend the conference and delivered a speech on the current market situation and development trends of disposable gloves.
As a commonly used protective item, disposable gloves can effectively prevent cross-infection and are suitable for various occasions. According to quality grades and uses, they can be divided into medical-grade and non-medical-grade. Medical-grade gloves refer to products that need to meet the quality certification system or access standards of the target country's medical market. They are mainly used in fields such as medical surgery, medical examinations, and medical care. Disposable medical gloves are currently mainly classified intoPVCThere are three categories: gloves, latex gloves, and nitrile gloves.
Liu Weiqi stated that following the surge in volume and price during the outbreak period, the variant strain has led to a new round of epidemic spread. While accelerating the inventory consumption cycle, it has once again released the demand for disposable gloves, driving steady market growth. Among them, disposable medical gloves are the main category, with a higher overall market average price. Sales volume and sales revenue have remained at75%and85%left and right.
After the outbreak of the pandemic, the demand for disposable gloves significantly decreased. Both supply and demand relationships as well as market conditions have changed. Enterprises are experiencing lower revenue and profits. Some small and medium-sized manufacturers that entered during the pandemic will be gradually phased out. However, in the long run, with the improvement of people's health awareness, it is expected that market demand will experience permanent growth, and the market will continue to grow steadily in the future.
Liu Weiqi pointed out that after the easing of the epidemic, the market demand for disposable gloves has declined, and local outbreaks cannot be reproduced.2020At the beginning of the year, there was a severe imbalance between supply and demand. However, the industrial reshaping hindered by the pandemic and the permanent increase in glove demand have had varying degrees of impact on regions around the world:
Developed countries such as Europe and America have a higher population living standard and income level. Coupled with strict public health regulations, they have always been the largest consumers of gloves globally. The COVID-19 pandemic has driven growth rates in mature markets.
As a major producer hub for latex gloves and nitrile gloves, Malaysia has always been a major exporter of disposable gloves. Affected by the pandemic, Southeast Asian suppliers were unable to ensure continuous and stable production for some time, leading to a decline in short-term capacity. This provided an opportunity for orders to be transferred to China during a certain period due to the reduced production capacity.
China isPVCThe largest producer of gloves, in comparison, has a production volume of nitrile gloves that is less than that of Malaysia. However, domestic enterprises are gradually expanding the production capacity of nitrile gloves and are expected to seize market share in the future with their strong supply chain advantages.
For emerging markets such as the Middle East and South America, the objective demand for medical supplies continues to rise, with public health protection awareness being continuously strengthened. The incremental demand during the pandemic is also expected to settle into a long-term increase over the coming years.
In the post-pandemic era, as major export countries relax their epidemic prevention policies and digest past inventory, domestic manufacturers have seen a reduction in new orders, leading to a corresponding decline in the export volume of disposable gloves. According to data from the General Administration of Customs, among the main categories of disposable gloves exported from China, the United States holds an absolute advantage and ranks first.
2020In 2020, the United States exempted some Chinese medical protective products from tariffs, significantly increasing purchases of Chinese products. 21As the epidemic gradually subsided in the year, export unit prices peaked in the first half of the year, andQ1 quarterAfter reaching the peak export amount, affected by factors such as changes in supply and demand relations, the average selling price of disposable gloves dropped sharply. Although the total export amount was significantly adjusted, it has gradually stabilized. 22In the beginning of the year, it was affected by various aspects such as the epidemic, market, and policies. Although export volume is still21About half of the same period last year, but the total amount is only21During the same period of the year17%Higher than the same period before the epidemic50%Above.
"Under the impact of tariff policies, it is evident that the quantity of disposable nitrile gloves exported to the US has dropped sharply. The EU has not yet introduced new policies and further observation is needed."" 'Liu Weiqi said.
Subsequently, Liu Weiqi analyzed the production and sales environment of disposable gloves. He pointed out that during the pandemic, domestic companies were more aggressive in expanding production scale compared to several foreign companies, continuously narrowing the gap in capacity and having already risen to the forefront globally. Subsequently, due to the easing of the pandemic, manufacturers have seen a reduction in new orders, resulting in underutilization of current capacity. However, looking ahead, cost advantages and economies of scale will accelerate market integration.
In the past three years, the outbreak of global health events has led to a surge in demand for disposable gloves. Coupled with rising raw material prices and a shortage of production capacity, disposable glovesASP（Average selling priceThe average selling price (ASP) once surged sharply. After the easing of the pandemic, with accelerated capacity deployment, the average selling price of disposable gloves returned to a rational range.
Among the three types of gloves, nitrile gloves have achieved a higher market share thanASPAlthough prices have returned, domestic manufacturers are further pressured by the tariff policy and the resumption of production by Malaysian counterparts.PVCGlove prices are relatively low, and the vast majority of production capacity comes from China. Keeping a thin profit margin while selling in large quantities remains a long-term strategy.
Overall, current production costs remain high, and sales prices have returned to pre-pandemic levels, having a significant impact on the profits of many enterprises. However, due to the impact of the pandemic, many visionary companies have utilized the ample cash flow brought about by their high profits over the past two years to adopt various methods to cope with market fluctuations. These include expanding production capacity and reducing unit costs; investing in upstream raw material enterprises to ensure stable supply of their own raw materials; and taking advantage of local preferential policies in Vietnam to build new production lines.
Currently, in addition to reserve procurement for government actions, routine nucleic acid testing has also generated more demand for disposable gloves. At the same time, the pandemic has heightened people's awareness of protection, leading to an increase in the use of disposable gloves in non-medical scenarios. This is more conducive to manufacturers exploring domestic markets. Some existing manufacturers have expanded their visibility through various methods such as optimizing product design, establishing their own brands, and promoting sales on e-commerce platforms.
Liu Weiqi stated that after the market returns to normalcy, a new round of industry development should be centered around lean management, taking into account both global market demand changes and the continuous implementation of corporate development strategies.
