Global Supply Pressures Impacting Disposable PPE Industry

Current geopolitical instability is putting significant strain on the global disposable Personal Protective Equipment (PPE) market, impacting raw material supply and driving up costs, as well as rising freight and manufacturing expenses. For New Zealand businesses, these global pressures are now flowing through to local pricing and availability, particularly given the market’s reliance on imported PPE.

Since February, the cost of NBR (nitrile butadiene rubber), the key raw material used in nitrile gloves, has increased due to a shortage of butadiene feedstock. The current Middle East conflict is adding further pressure to global energy and shipping markets—as highlighted by Business Today, hostilities in key trade routes are further tightening supply and contributing to rising raw material costs for glove manufacturers. These disruptions can have a delayed but direct impact on landed costs in New Zealand.

We’re also seeing a knock-on effect across glove materials. As demand shifts from nitrile to latex gloves, prices are rising, driven further by increased latex raw material costs. As a result, cost pressures are now impacting both nitrile and latex categories. Manufacturers of protective clothing and other disposable PPE are also experiencing rising costs for petroleum-based raw materials, along with increases in transport and packaging—all of which contribute to higher import and distribution costs locally.

Raw materials and factory expenses account for roughly 70% of a glove’s total cost. So when costs rise, unethical manufacturers can choose to lower their costs by reducing material quality and adding cheaper fillers—often at the expense of glove performance, safety, and wearer safety. Recent enforcement in Malaysia highlights this risk, with authorities seizing over 45,000kg of rejected scrap gloves. Supply chain integrity has never been more important, especially during periods of tight supply and rising costs, which increase the likelihood for substandard or non-compliant products to enter the market.

What this means for businesses

• Short-term price volatility & adjustments

• Potential PPE supply constraints, especially nitrile gloves 

• Greater importance of supplier transparency & product quality assurance

• Increased risk of non-compliant or substandard products entering the NZ market

Recommended actions

• Review your current stock levels & forecast demand

• Work closely with your supply partners to ensure availability

• Plan for cost increases & allocation constraints

• Ensure robust quality & sourcing standards are in place

What The Future Holds

While the current disruption is linked to developments in the Middle East, the impact on global supply chains is likely to last beyond any immediate resolution. With ongoing pressures on raw materials, production capacity and logistics expected to continue for many months, your forward planning and strong supply partnerships are more important than ever.

Concerned about PPE supply or pricing volatility? Get in touch with our team to discuss your current usage, forecast demand, and secure supply.