NEWARK, NJ / ACCESSWIRE / November 17, 2020 / Safety First Healthcare, a Delaware company registered with the Securities & Exchange Commission as a US-form 10 public company with factories in Vietnam specializing in the personal protective equipment business, explains the factors which are driving nitrile glove demand and pricing.
The current primary growth factor for nitrile gloves is the current Covid-19 pandemic. The pandemic has led to many business sectors beyond the medical industry to purchase nitrile gloves. Moreover, now the general public is wearing nitrile gloves for many tasks in their daily lives. This increased demand globally and across all sectors of society comes up against a limited supply of rubber in the world.
Statistically, 90% of all rubber comes from Asia, primarily Thailand, Indonesia, Malaysia, China and Vietnam. Since the start of the pandemic, some countries have stopped allowing rubber exports. Today, there are basically 3 countries where glove manufacturers can buy rubber; Thailand, Indonesia and Malaysia. Therefore, supply has become more and more limited while demand is rising.
The main attributing factors of why rubber supply cannot be increased quickly is land, tree growth and climate. Given the right climate, it takes about six years for a rubber tree to grow to a point where it's economical to harvest the sap. With an average of 450 trees planted per 2.5 acres of land, approximately 3,500 to 4,500 kilograms of rubber can be produced per year. This equates to 900,000 gloves per 2.5 acres of land per year. Lastly, nitrile gloves comprise only 2% of global rubber production. Most rubber production is for tires. Hence, current supply and demand studies anticipate that it will take minimum 5 years for supply to meet nitrile glove demand.
Fredy Bush, Advisory Chairwoman of Safety First Healthcare stated, "Nitrile gloves begin their lifecycle as rubber from rubber trees. They are chemically transformed into latex rubber. After they are turned into latex rubber, they are again chemically reprocessed until they turn into the nitrile compound material. This processing removes all latex proteins. The extra steps in the creation process is why nitrile gloves are so expensive compared to latex. Nitrile glove manufacturing is a very technical and slow process."
The global nitrile gloves market size was valued at USD 3.12 billion in 2019 and is anticipated to reach USD 8.98 billion by 2027, according to a new report by Grand View Research, Inc. The market is projected to register a CAGR of 14.1% over the forecast period. Increasing demand for nitrile gloves in the medical industry owing to the high-performance characteristics of nitrile in comparison with other types of glove materials is expected to propel market growth.
Shaun G. Morgan, CEO of Safety First Healthcare commented, "Market research with respect to nitrile gloves is compelling. The growth of the industry is expected to be 14% per year and that is without factoring in the current Covid-19 pandemic which has depleted global supplies of nitrile gloves. Moreover, once the pandemic is better controlled through vaccines or therapeutics, stocks of nitrile gloves will have to be replenished by governments and the medical industry globally. Safety First Healthcare is well-positioned in the nitrile glove business and we see this as a major growth driver for the company over the next few years."
Safety First Healthcare - Premier Producer of Personal Protection Equipment (PPE): http://SafetyFirstHealthcareNews.com
Safety First Healthcare CEO Shaun G. Morgan On the Extensive Offering of FDA-Certified Medical Products: https://www.biospace.com/article/releases/safety-first-healthcare-ceo-shaun-g-morgan-on-the-extensive-offering-of-fda-certified-medical-products/
Safety First Healthcare CEO Shaun G. Morgan On Mobilizing Resources to Help Address PPE Shortage: https://www.yahoo.com/news/safety-first-healthcare-ceo-shaun-163500578.html
SOURCE: Safety First Healthcare