Rubber Journal Asia Gloves
Gloves paired with outbreaks of diseases the increasing hygiene awareness. It has been operating near maximum capacity with an average utilisation rate of 90% to comply with the demand. Thus, it’s no surprise that last year, Top Glove hatched a plan to increase its global market share from an estimated 25% to 30% by end-2015. Producing 40 billion pieces/year, Top Glove expects a further boost in its global glove exports sales due to the avian flu and the stronger US dollar. Meanwhile, synthetic nitrile glove producer Hartalega says the avian flu is not a catalyst for its growth. Managing Director Kuan Mun Leong attributes the growth to the market’s reliance on its capabilities. The company, which employs an automated production model, produces 11 billion gloves/year, with 90% being nitrile gloves. In 2014, Hartalega is also starting its Next Generation Integrated Glove Manufacturing Complex (NGC) to level up its efficiency, which is expected to yield a 6% extra margin.
For key rubber glove producers, it is a case of one man’s meat is another man’s poison. Emerging diseases like the flu virus outbreak in China may be morbid news to many but also raises hopes for market growth, says Angelica Buan in this report.
Research companies give a thumbs up for gloves he market share for gloves has increased recently, with sales pushed up in the wake of a new strain of the H9N7 avian flu outbreak in China, reviving fears among the public of a new epidemic in a country, only a decade after the SARS outbreak. Citing a report from Malaysia-based Affin Investment Research, examination gloves are in demand, against the backdrop of an increasing awareness for hygiene and disease prevention. Affin’s findings are a much-awaited respite by glove producers, particularly in Malaysia since it houses the largest glove makers in the world, led by major players Top Glove, Supermax Corp, Kossan Rubber Industries and Hartalega Holdings. These companies together account for about 60% of global demand or 96 billion pieces of rubber gloves and had to contend with a weak demand in 2010 and 2011 as a result of the US currency fluctuations and higher latex costs. Nevertheless, the market improved last year due to lower prices of latex. As such, Malaysian research firm Kenanga Research says that rubber gloves will continue to be in demand at an annual average growth of 10% in Malaysia, also emphasising an incline towards nitrilebased gloves, which have consistently taken a significant share in the market. “We expect the sector to remain resilient as the bird flu in China is expected to increase, thus boosting demand for examination rubber gloves,” Kenanga said, adding that it has upgraded the rubber glove sector from a “neutral” to an “overweight” rating. This is reinforced by Affin’s report that says glove makers like Top Glove are anticipating a surge in demand since healthcare institutions are stocking up on gloves and also because of
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Hygiene factors to play a part in the growth istory is being repeated as rubber glove demand was scaled up in 2010 due to the H1N1 flu pandemic. Even then, Malaysia led the roost of global glove producers and exporters to serve the medical sector, according to a study by India-based research firm Konsept Analytics. It says that countries like India, China and Brazil also showed a rise in demand for rubber gloves on account of reinforcing hygiene practices to prevent diseases. Affin also shared the same findings that hygiene awareness is driving users to demand more stringent quality gloves as well as urging healthcare centres to use gloves, noting that government initiatives in the light of disease prevention and wellness are also helping drive demand. Meanwhile in India and China, where only examination gloves are used, the research firm expects demand to triple from the 160 billion pieces used last year. Furthermore, Konsept Analytics says that increased healthcare expenditure is driving glove sales in the US, which remains a major importer, and in the UK and major European countries. The New Delhi-headquartered firm’s report also indicates that low-end powdered latex gloves are favoured by cost-conscious end-users in developing countries, while powder-free latex and nitrile gloves are preferred by developed countries, including the US and Europe.
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