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New analysis from Frost & Sullivan estimates that the European surgical gloves market generated revenues of USD 191 million in 2003. This is projected to increase to around USD 240 million in 2010. Germany accounted for the bulk of revenues in 2003, contributing USD 48 million.
People's awareness about allergy to natural rubber latex and to powder is increasing. Continued exposure to natural rubber latex results in latex intolerance, which progressively worsens in the presence of the allergen. This is causing a gradual shift in the market from the widely used natural latex powdered gloves to natural latex powder-free gloves and, in some cases, synthetic alternatives.
"Synthetic alternatives were introduced when allergies to the natural rubber latex became a major problem," remarks Frost & Sullivan Research Analyst Kavitha Ravikumar. "With improvement in materials and technology, they are now carving a market for themselves."
This product shift could offset the impact of falling prices to some extent, as both powder-free gloves and synthetic alternatives derived from materials such as Neoprene and Polyisoprene are more expensive than powdered latex gloves. Geographically, this trend is increasing in countries such as Spain, France and Italy. The Benelux is also witnessing some amount of conversion to synthetic gloves.
With so many changes taking place in the surgical gloves market, companies are looking to product innovation and technology differentiation to provide it the necessary impetus. The replacement trend is expected to be one of its key growth drivers. Since the conversion from cheaper latex powdered to the more expensive latex powder-free gloves is not fully complete in Europe, companies can capitalise on this opportunity for market or revenue growth.
New technologies are, however, expensive to develop and implement. Companies will have to find methods to restrict manufacturing and material costs to balance those of devising new technologies.
Companies also face a strong challenge in the form of geographically disparate distribution channels. This often results in major differences across the market from country to country. Marketing strategies that clearly demarcate the various distribution channels are likely to enable better brand recall. Additionally, reducing the price differences between regions can also help narrow the geographic gap and make the company appear more accessible.
Despite these challenges, conversion due to innovation and allergy issues is expected to sustain the surgical gloves market and ensure continued research and development. Expenditure on branding, market consciousness, awareness and public relations is likely to increase as companies vie for space in this mature market.
"The good news is that in spite of price pressures and the near complete penetration of the product in Western Europe, the European surgical gloves market is likely to remain stable until at least 2010," says Ms. Ravikumar.
http://healthcare.frost.com