Disposable Gloves

Disposable Gloves Global Market Outlook:

MARKET OVERVIEW

Global market size: $12.3 Billion (2021)

Expected to grow at a CAGR of 5.8 percent

• The global market size is valued at 12.3 billion in 2021, growing at a rate of 5.8 percent, due to an increased demand from pharmaceutical and food industries

• The pharmaceutical industry (35 percent) followed by food industry (20 percent) is the major end-use industry of disposable glove. A rising consciousness and standard for hygiene, progressively stringent health regulations, prevention of chemical infections, etc. in the healthcare industry are some of the latest major factors contributing for an increased demand for gloves

• To impact of the pandemic on medical supplies (disposable gloves) continued to result in suppliers operating at very high operating levels (>90 - 95 percent) of their installed capacities to meet the demand

Disposable Gloves Cost Structure Analysis

• Cost of raw material contributes to approx. 50–60 percent of the total cost of glove production, it also varies with the type of raw material and regions

• For a glove manufacturing company, the raw material, such as natural rubber or synthetic rubber (NBR/PVC/Butadiene/ACN) consumption, is a major part of the overall operating cost

• The production cost of natural rubber gloves depends upon natural rubber’s prevailing prices in the market and nitrile prices (derivative of crude oil) for manufacturing of synthetic rubber gloves

Porter's Analysis on Disposable Gloves

Disposable gloves is an essential part of PPE within the medical sector and demand is continuing to rise, as the outbreak of COVID-19 makes infection control measures even more important

Supplier Power

• The supplier market for disposable gloves is highly fragmented, with over 100 suppliers present globally with most of them supplying disposable gloves

• These suppliers have various materials, like latex, nitrile, and vinyl disposable gloves

• The supplier power varies from low to medium for disposable gloves suppliers

Barriers to New Entrants

• Regulatory requirements: ASTM, PPE-CE, EN 420: 2003, and ISO 13485 capabilities are keys to produce antibodies and antigens. For example, medical gloves must meet a higher acceptable quality limit and have certifications such as NMPA filing, FDA certification and CE mark

• Technology barrier- The production of vinyl gloves requires raw materials, like PVC paste resin, plasticizer, etc., and further the temperature and humidity, where the production line is located are the parameters considered for making gloves

• R&D investment: The single-use gloves require significant capital investment and EPA regulatory approvals to increase production. It is also estimated that it may take 4 to 6 months to add a new production line and a minimum $2 million investment

Intensity of Rivalry

• Technology: Suppliers are investing in proprietary technologies [Ansell - ERGOFORM, SHOWA – Eco Bets technology (EBT), etc.] to differentiate themselves from their competitors. HARTALEGA highly automated production processes model

• Capacity expansion: Established suppliers have been growing through expanding their manufacturing capacities in the disposable glove category E.g., Malcom India to set up a new protective apparel manufacturing plant in India, Apcotex to expand nitrile latex production in India, adding 60,000 metric tons per year at their plants

• The above trends leave the intensity of the rivalry as high among suppliers

Threat of Substitutes

• Disposable gloves do not fulfill the usage in the medical industry. They can be used to a certain extent

• Other types of gloves, such as exam gloves, medical gloves, surgical gloves, etc., are engineered to meet specific requirements

• Due to the pricing of the product and the global situation, the threat of substitute remains medium

Buyer Power

• Buyer power for healthcare clients varies between medium to high based on material of disposable glove – latex, nitrile, and vinyl along with the procurement volume of disposable gloves

• By engaging with 2 to 3 players for disposable gloves, there are chances of posses a better negotiation power, in terms of value and pricing