The glove market price was previously USD 29 per box @ 1000 pieces. How much has market price actually increased? To be fair all it really took was bit of time on google to identify this. Average retail price direct to consumer works out to be USD 100-150 per box from what I can gather at Amazon.

https://www.amazon.com/s?k=nitrile+gloves&ref=nb_sb_noss_2

That works out to be an increase of 4 fold! Of course let’s not assume that our glove manufacturers are going to be selling gloves at these prices. But we take a more conservative approach that there is a significant possibility that our glove manufacturers have a very distinct and high chance that they are able to increase their prices up 50% from USD 29 per box – USD 45 per box. It still leaves existing resellers a large margin and keeps them happy to boot! When we did a little bit of background research just at the B2B level we found from Alibaba that majority of the disposable nitrile gloves are selling their gloves at USD 150 per 1000 pieces.

Initially when I first read that the ASP for gloves would increase 45% in an analyst report for Top Glove I was shocked! In retrospect a 45% increase is extremely mild! It is nowhere near what the price has increased over the past few months.

45% increase in ASP for gloves would translate to a direct increase in profits by 45% off of previous years revenue! However, looking at the market conditions and just how much the market price has moved I really don’t feel it difficult for a glove manufacturer to raise prices from USD 25 – USD 50 while still providing a good enough margin for their distributors. That could potentially mean an increase of profit of 50% off of revenue!

Again this is different for OBM and OEM manufacturers. OEM Manufacturers will have to share the increase in price with their business partners and OBM manufacturers will reap their investments into their distribution network. This again highlights key profits for Top Glove, Supermax (90% own brand), UG (estimated 70% own brand) and also Riverstone (60% of all sales are from their own brand).

I would strongly suggest we look out for OBM manufacturers who have not really moved in the market yet such as UG!