VIP Gloves sees market shift from vinyl to nitrile gloves as demand surges

Vinyl gloves are made from polyvinyl chloride (PVC), which produce dangerous dioxin and other carcinogenic emissions across their life cycle (from manufacturing to landfill disposal).

Some vinyl gloves are also found to contain toxic plasticiser chemicals called ortho-phthalates that can leach into food.

Malaysias Maybank Investment Bank notes that demand has gradually switched from vinyl to nitrile rubber gloves, with the trend starting as early as 1999, for the medical gloves segment.

Global demand of 330 billion gloves this year

VIP Gloves Ltd (ASX:VIP) manufacturers nitrile gloves, which are allergy-free, puncture-resistant, have good barrier protection against infection and contamination and are suitable in medical and high-risk tasks.

The company said sales orders have been filled through to the second quarter of 2021, with recent orders at higher sale prices which vary, depending on the specifications and volume.

With the impact of COVID-19, the Malaysian Rubber Glove Manufacturers Association is projecting an estimated global demand of 330 billion gloves this year and expected annual growth of 20% this year.

According to Macquarie Bank, VIP looks set to benefit from strong glove market fundamentals with glove demand expected to remain robust driven by COVID-19.

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