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Global Nitrile Gloves Market to Reach $57.1 Billion by 2026

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Global Nitrile Gloves Market to Reach $57.1 Billion by 2026 Global_Nitrile_Gloves_Market
SAN FRANCISCO, Aug. 4, 2021 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Nitrile Gloves - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

Edition: 9; Released: July 2021
Executive Pool: 1106
Companies: 190 - Players covered include 3M Company; Adventa Berhad; Ansell Healthcare; Cardinal Health, Inc.; Dynarex Corporation; Hartalega Holdings Berhad; Honeywell International Inc.; Kossan Rubber Industries Ltd; Rubberex; Supermax Corporation Berhad; Top Glove Corporation Berhad; United Glove Inc. and Others.
Coverage: All major geographies and key segments
Segments: Type (Powder-Free, Powdered); End-Use (Healthcare, Chemical, Food Processing, Construction, Other End-Uses)
Geographies: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Complimentary Project Preview - This is an ongoing global program. Preview our research program before you make a purchase decision. We are offering a complimentary access to qualified executives driving strategy, business development, sales & marketing, and product management roles at featured companies. Previews provide deep insider access to business trends; competitive brands; domain expert profiles; and market data templates and much more. You may also build your own bespoke report using our MarketGlass:tm: Platform which offers thousands of data bytes without an obligation to purchase our report. Preview Registry
Global Nitrile Gloves Market to Reach $57.1 Billion by 2026
Nitrile gloves are among the most preferred disposable glove options, offering the benefits of latex such as strength, durability, and flexibility, without risks involving latex allergy. The gloves find widespread usage in all industries globally; being used for providing protection and safety for industry workers as well as materials that are handled. These gloves, manufactured from synthetic rubber offer safe, reliable, and stain resistant solutions for end users. Nitrile gloves are puncture-resistant, friction less, with a long shelf life in comparison to latex gloves and are ensure protection from a wide range of hazardous viruses and chemicals. Being rupture-resistant, they are used in laboratories for providing high durability and barrier protection. Offered in both powdered and non-powdered versions, nitrile gloves have gained notable acceptance on the expense of powdered latex gloves over the last several years. Nitrile represents a chemical compound based on carbon and triple-bonded nitrogen, which is commonly used for making different types of gloves, mainly disposable thin nitrile gloves. While nitrile is comparable to latex, it holds certain advantages that make nitrile gloves an effective alternative to powdered latex gloves. Nitrile represents a synthetic rubber that offers a desirable material for gloves due to its superior chemical resistance and elasticity. Nitrile gloves score high in terms of fit, wearing comfort, elasticity and tear resistance. Nitrile gloves exhibit high resistance to different types of oils and chemicals as well as present a suitable option for individuals with allergy to latex. Nitrile gloves hold several merits over nature rubber in terms of strength and durability along with resistance to oils, acids and chemicals.

Based on their inherent properties, nitrile-based gloves are widely used to handle chemicals in laboratories and perform surgical procedures. In addition, the nitrile gloves market is gaining from increasing shift of healthcare professionals from latex towards nitrile gloves due to allergy concerns associated with latex gloves. The market received a considerable push from the COVID-19 outbreak that created exponential demand for nitrile gloves. Infection risk and implementation of strict hygiene protocols established nitriles gloves as a compelling option as these gloves play an important role in preventing spread of the infection while keeping laboratory and medical procedures sanitary.
Amid the COVID-19 crisis, the global market for Nitrile Gloves estimated at US$14.1 Billion in the year 2020, is projected to reach a revised size of US$57.1 Billion by 2026, growing at a CAGR of 23.3% over the analysis period. Powder-Free, one of the segments analyzed in the report, is projected to grow at a 24.8% CAGR to reach US$59.9 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Powdered segment is readjusted to a revised -2.8% CAGR for the next 7-year period. This segment currently accounts for a 9.6% share of the global Nitrile Gloves market.
The U.S. Market is Estimated at $11.4 Billion in 2021, While China is Forecast to Reach $13.6 Billion by 2026
The Nitrile Gloves market in the U.S. is estimated at US$11.4 Billion in the year 2021. The country currently accounts for a 33.58% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$13.6 Billion in the year 2026 trailing a CAGR of 29.1% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 18.3% and 22.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 20.2% CAGR while Rest of European market (as defined in the study) will reach US$14.8 Billion by the close of the analysis period.

The pandemic has led to remarkable spike in personal protective equipment demand from the healthcare industry and the general public. The scenario made it extremely challenging for manufacturers and other businesses to maintain desirable stock for ensuring employee safety. While the initial focus was on notable shortage of N95 masks, the short supply and escalating unit prices of nitrile gloves emerged as major concerns. Majority of hospitals and healthcare facilities were left struggling with shortage of medical-grade gloves rather than protective gowns and face masks. While significant shortages of essential items such as face masks, respirators and disinfecting wipes led to safety concerns, the sudden drop in availability of nitrile gloves remains a formidable challenge for healthcare facilities that rely heavily on these gloves owing to their high durability along with puncture- and chemical-resistant nature.
Disposable nitrile gloves experienced a dramatic incline in global demand amid COVID-19 that grew three-fold in 2020. The incredible increase in demand was witnessed over a short span due to high use by healthcare professionals and the implementation of strict hygiene protocols. In addition, various health systems and government entities started stockpiling for dealing with another wave of the pandemic. Majority of healthcare facilities globally reported notable drop in supply of medical-grade gloves. While global demand associated with nitrile gloves touched the 500 billion plus mark in 2020, manufacturers were able to product just 370 billion units. Meanwhile, the nitrile gloves market also faced supply challenges as pandemic disrupted production at various facilities.
Various health organizations and hospitals failed to ensure adequate supply of gloves for medical use. The scenario resulted in national shortage of medical-grade gloves in various countries, which coerced medical professionals to reuse disposable gloves. The nitrile gloves demand is likely to remain unabated in the coming months. In addition, the short supply of nitrile gloves also affected the manufacturing along with other industries. Nitrile gloves are considered as critical safety product for various industrial activities that demand hand protection. The global supply chain for nitrile gloves continues to experience tremendous strain owing to inflated demand coupled with drastically low supply of the personal protective equipment. While nitrile glove manufacturers are working at their full capacity, the supply has been unable to match the demand since the outbreak of COVID-19 in 2020. The gap is affecting a large number of end-users, including healthcare professionals and other industrial users.
In addition, there is stark shortage of nitrile gloves across various US states, indicating significant mismatch between demand and supply. The global demand for nitrite gloves is anticipated to remain unabated in the coming months on account of increasing need for protection to healthcare professionals as well as general public and workers across different industry verticals. Furthermore, the announcement of COVID-19 vaccination programs across different countries is poised to provide a significant impetus to global demand for these gloves. Healthcare and government organizations conducting these vaccination programs are required to ensure sufficient availability of nitrile gloves for medical professionals intended to administer the COVID-19 to people for desirable hand hygiene and protection.

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Post Fri Aug 06, 2021 1:45 pm by ResearchMan
This article first appeared in Capital, The Edge Malaysia Weekly, on July 26, 2021 - August 01, 2021.

Global Nitrile Gloves Market to Reach $57.1 Billion by 2026 Cap1_TEM1380_20210727135132_theedgemarkets

-AGlobal Nitrile Gloves Market to Reach $57.1 Billion by 2026 A+A

THE spread of the more contagious Delta variant and a resurgence of Covid-19 cases globally have again drawn market attention to glove stocks, which were languishing at their lows earlier this month — the lowest since the pandemic began in early 2020.
First discovered in India in April, the Delta variant is at least two times more transmissible, and infections can spread very quickly airborne in just 15 seconds, say scientists.
As the vaccination rates in developing countries are much lower than those of developed nations, Indonesia’s record high daily new cases have made it the new Covid-19 epicentre in Asia.
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Malaysian financial services institutions (FSIs) are very much at the forefront of hybrid multi-cloud solutions. According to Nutanix’s Enterprise Cloud Index (ECI) report, 64.7% of local FSIs are already in the process of developing a cloud strategy, compared with only 15% globally.

Because of the deteriorating situation, trading interest in glove stocks started to build up a week ago, boosting counters that had been hit by massive selling pressure earlier this year amid the ramping up of inoculation drives globally.
Except for Careplus Group Bhd (+5.6%), all other glove stocks have registered negative returns since the start of the year. Supermax Corp Bhd saw the biggest drop at -37.4%, followed by Hartalega Holdings Bhd (-36.5%) and Rubberex Corp (M) Bhd (-32.1%).
Their regional peers have performed much better. Singapore-listed Riverstone Holdings Ltd and UG Healthcare Corp Ltd had seen gains of 20% and 4.5% respectively over the same period. On the Thai stock exchange, Sri Trang Gloves Thailand had risen 3.3%.
Global Nitrile Gloves Market to Reach $57.1 Billion by 2026 Cap1_tbl1_TEM1380_theedgemarkets
Most glove counters are trading at a price-earnings ratio of less than four times, a stark contrast to their historical highs of more than 50 times at the height of the pandemic last year.

ASP normalisation to slow down if Covid-19 situation worsens

A glove analyst with a bank-backed research house reckons that there could be further upside for glove stocks as demand is expected to increase in tandem with rising Covid-19 cases due to the Delta variant. This, in turn, will reduce the pace of declining average selling prices (ASPs) of gloves.
Taking Hartalega as an example, he observes that its share price is almost back to pre-pandemic levels. Considering that earnings are much higher now than pre-pandemic, he believes the stock should be worth more. “The valuation does not really make sense, plus it is paying good dividends,” he opines.
Among the Big Four, Top Glove Corp Bhd has the highest trailing 12-month dividend yield of 16.4%, followed by Kossan Rubber Industries Bhd (7.5%), Supermax (4.6%) and Hartalega (4.2%).
The analyst is of the view that glove stocks will continue to be supported by the Delta variant’s transmissibility, coupled with the fact that a few of the vaccines being administered could be less effective against the variant.
Although glove players around the world are ramping up production, the analyst expects the global shortage of gloves to persist until 2023. “During the height of the pandemic, everyone was desperate to get gloves. But now, they are less desperate as vaccination is being rolled out. Although there is new supply coming on board, bear in mind that the usage of gloves has increased tremendously since the pandemic began.”
Another analyst is less bullish on the sector as he does not expect a strong rebound in glove stocks. “Looking at the Covid-19 trend in the UK, the death rate is still quite low. For Malaysia, the death rate should come down when more people get vaccinated,” he points out.
Global Nitrile Gloves Market to Reach $57.1 Billion by 2026 Cap1_cht1_TEM1380_theedgemarkets
“Also, there has been a significant drop in serious infection cases (category four and five) among the elderly. People know that the vaccines are working, so the demand for gloves is not going to be strong unless the situation with the Delta variant gets worse.”

Risk of oversupply remains

The analyst cautions that when Delta variant cases subside, glove stocks may tumble again as investors are still concerned about an oversupply situation next year. “Margma (Malaysian Rubber Glove Manufacturers Association) didn’t impute much supply from China. If not, why would Top Glove say the lead time for glove deliveries is only 60 days? It does not make sense. It should be more than one to two years,” he says.
“For now, based on the expansion plans, there will be oversupply. But some players will slow down their expansion plans when the oversupply kicks in. So, will China slow down or continue to push the volume? That is still a question mark. But in terms of efficiency and operating costs, Malaysia will still have an advantage.”
Going by past trends, an oversupply lasts six to nine months. After two to three quarters, ASPs tend to bounce back when demand catches up, the analyst points out. “Overall, it will depend on how aggressive the expansion plans of the Chinese players are.”
One factor that may slow the decline in ASPs is the reduced workforce at factories due to the movement restrictions under the recent Enhanced Movement Control Order (EMCO).
“Compared with 2Q2021, ASPs are still on a downward trend in 3Q. There is no indication yet for 4Q,” he says.
“So far, Top Glove hasn’t seen any change in the ASP trend. But Hartalega’s ASPs may still be up quarter on quarter in 2Q after it shut down some lines in 1Q due to the Covid-19 cases.”
Nonetheless, glove buyers are still adopting a wait-and-see approach because they do not want to hold inventories at high prices, he notes. “The current lead time for glove deliveries is about 60 days. However, the lead time may increase due to the EMCO.”
AmResearch said in a July 7 note that the Delta variant would slow the fall in glove ASPs, as glove urgency is buoyed by the rise in cases. A smaller rate of decline in ASPs would help support earnings over the next 12 months. “We expect market glove ASPs to stabilise at US$30 to US$35 per 1,000 pieces before tapering off more gradually.”
UOB Kay Hian Research’s assumption is that ASPs will decline by 5% month on month, which translates into an ASP of US$80 and US$40 per 1,000 pieces for 2021 and 2022 respectively.
Most players hit an ASP peak in 1Q this year, but Supermax has already seen a decline of 15% to 25% in its 3QFY2021 ended March 31, with spot market prices falling below contracted prices.
Margma has projected that global demand for gloves will hit 500 billion pieces this year, compared with an estimated supply of 420 billion pieces, or a shortfall of 80 billion pieces. Malaysia accounts for about 68% of the global glove supply. An equilibrium between supply and demand is only expected to be achieved after two years.
Independent business consulting firm Vital Factor is far more bullish on global demand, given its projection of 682 billion pieces this year against 466 billion pieces in global output.
As investor sentiment is heavily influenced by the number of Covid-19 cases worldwide, active trade could provide trading opportunities for glove stocks, especially as expectations of a recovery are likely to be dampened in the short term.

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