The outlook continue to appear bleak for Malaysian rubber glove manufacturers as the country continues to lose global market share, on the back of global demand exceeding pre-pandemic levels exacerbated by the US-China tariff rate situation.
The team with TA Securities Bhd (TA Research) in a sector review noted that Chinese glove manufacturers have firmly established themselves as the cost leaders in the global glove industry, expanding their market share from approximately 11 per cent in 2019 (pre-pandemic) to around 34 per cent in 2025, largely at Malaysia’s expense.
“Over the same period, Malaysia’s global market share declined sharply from 63 per cent to about 35 per cent,” it said in the report. “Looking ahead, we expect China to emerge as the dominant force in global glove production.”
The team noted that Chinese manufacturers have capitalised on domestic cost advantages and aggressive capacity expansion, benefiting from significantly lower production costs, particularly for energy, which enabled them to substantially reduce average selling prices (ASPs) to as low as US$13-US$15 per 1,000 gloves.
These price levels undercut Malaysian producers, who would incur losses at such levels.
Meanwhile, global glove demand continues to exceed pre-pandemic levels. TA Research saw that global glove demand reached 357 billion pieces in 2024, surpassing pre-pandemic levels of 284 billion in 2019.
This post-pandemic recovery and growth extended into 2025, it said, with an estimated global demand of 370bn pieces while pandemic-era stockpiles continued to deplete and restocking activities resumed.
“Into 2026, the global glove demand is estimated to rise further to approximately 398 billion pieces, supported by a gradual recovery in healthcare consumption and sustained growth in global healthcare spending.”
Additionally, Section 301, US tariffs on Chinese-made medical gloves have been set at 50 per cent since January 2025 and are scheduled to increase to 100 per cent in January 2026, following an announcement by the United States Trade Representative (USTR) in September 2024.
TA Research noted that tariffs on Chinese medical gloves stood at 70 per cent in the second half of 2025 (2H25), and our recent channel checks with a glove manufacturer indicate a further 50 percentage point-increase to 120 per cent in January 2026.
These elevated US tariffs on Chinese-made medical gloves have reshaped market dynamics.
“In 2025, the 70 per cent tariff has driven US buyers to shift away from Chinese suppliers, benefitting Malaysian and Thai manufacturers. China’s market share in the US fell sharply from 32 per cent in 2024 to just six per cent in 1H25, while Malaysia’s share rose to 59 per cent in 1H25 from 44 per cent in FY24.
“Despite Malaysian manufacturers gaining market share in the US, competitive pressure from Chinese producers is expected to persist in non-US markets, where average selling prices (ASPs) remain highly competitive.
“While the current US tariff regime continues to provide Malaysian glove makers with meaningful protection, any future easing or removal of tariffs arising from trade negotiations would pose a significant downside risk to the industry.”
Source: theborneopost