Disruption often occurs not internally, but externally.
If there is no epidemic, the growth rate of the disposable glove industry has basically stabilized at around 5% globally, but the impact of the epidemic has suddenly subverted the industry. According to the Malaysian Glove Industry Association, the demand for rubber gloves will increase by 20% in 2020, and this year and next year will continue to maintain rapid growth, with the expected growth rates of 25% and 15% respectively. Obviously, regardless of the current or post-epidemic era, the disposable glove industry is optimistic about the market. Investigating the reasons, the answer lies in the two "normalities".
Production capacity is frustrated, barriers are extremely high, and short-term supply exceeds supply as the norm
Under the epidemic, the demand for disposable gloves as a necessary material for epidemic prevention has exploded. And TopGlove, the world's largest medical glove manufacturer, was forced to close some factories due to the epidemic, making the already tight supply of disposable gloves even worse. Data show that the current global shortage of disposable protective gloves is as high as 200 billion. What is this concept? In 2019, the global demand for disposable protective gloves will be about 500 billion. Based on the long delivery time of disposable gloves and the continuously increasing demand, such a huge gap is obviously a serious imbalance between supply and demand.
In addition, unlike protective products such as masks, the disposable glove industry has extremely high barriers to entry.
First of all, in terms of capital, the investment of a nitrile glove two-hand mold production line is more than 20 million yuan. Taking into account the size and color of the glove, the establishment of a set of assembly lines basically starts with ten, plus other costs. The investment threshold for the nitrile glove factory exceeds 300 million yuan.
Secondly, technically, take the disposable nitrile glove production line as an example. There are as many as thousands of control points on a main chain. It is extremely difficult to ensure the efficient, stable and low-energy operation of the production line and to ensure the yield of products. Moreover, the processing equipment of disposable gloves is not standard equipment, but each manufacturer designs according to its own product positioning, combined with the temperature and humidity of the production area, all of the above require long-term production experience accumulated by the manufacturer.
Finally, in terms of time, cost, resource matching and other rigid conditions, it usually takes 14-18 months for the disposable glove production line project from the planning and site selection to the realization of production. Moreover, based on environmental protection requirements, more and more industrial land meets the production conditions of disposable gloves. less.
Undoubtedly, with the original production capacity frustrated and new external production capacity difficult to follow, the global supply of disposable gloves will become the norm in the short term.
The pattern is reshaped, domestic production is rising, and health protection becomes the norm in the long run
As the world's other major producer of disposable protective gloves besides Malaysia, China's epidemic prevention achievements are obvious to all. As a result, some overseas customer orders have gradually shifted from Malaysia to domestic glove manufacturers. It is believed that the transfer of production capacity will accelerate the reshaping of the global disposable glove industry pattern in the next few years, and China will become the world's largest producer of disposable gloves.
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The epidemic will eventually pass, but the epidemic has changed our living habits to a great extent. Therefore, even after the epidemic, due to the structural increase in the health protection awareness of global residents, including countries paying more attention to the construction of medical emergency capacity systems, and health protection related With the successive introduction of policies and regulations, the disposable glove market will still have huge room for growth.