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Market Brief (Rubber Medical Devices) August 2015

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Market Brief (Rubber Medical Devices) August 2015 MALAYSIAN RUBBER EXPORT PROMOTION COUNCIL MARKET BRIEF (RUBBER MEDICAL DEVICES) AUGUST 2015 UNITED STATES OF AMERICA CONTENTS Item Topic Page 1. COUNTRY PROFILE 2 2. MARKET SCENARIO 3 3. TRADE STATISTICS 5 4. IMPORT REGULATIONS 12 5. TARIFF & NON TARIFF BARRIERS 13 6. FREE TRADE AGREEENT (FTA) 14 7 TRANS PACIFIC PARTNERSHIP 14 8. MAJOR MEDICAL DEVICES SUPPLIERS IN USA 15 9. USEFUL CONTACTS 16 10. TRADE FAIRS 18 1 1.0 COUNTRY PROFILE UNITED STATES OF AMERICA Capital: Washington D.C, Population: 317.6 million (UN, 2010) Area: 9.8 million sq km Official language: English Major religions: Christianity Life expectancy: 76 years (men), 81 years (women) Currency: US Dollar Main exports: Computers and electrical machinery, vehicles, chemical products, food and live animals, military equipment and aircraft Main imports: Agricultural products, industrial supplies (crude oil), capital goods (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods (automobiles, clothing, medicines, furniture and toys). GDP per capita: $54,800 (2014 est.) GDP growth: 2.4% (2014 est.) International dialing code: +1 2 2.0 MARKET SCENARIO Health Care Industry in USA Health care in the United States is provided by many distinct organizations. Health care facilities are largely owned and operated by private sector businesses. 58% of US community hospitals are non-profit, 21% are government owned, and 21% are for-profit. According to the World Health Organization (WHO), the United States spent more on health care per capita ($8,608), and more on health care as percentage of its GDP (17.2%), than any other nation in 2011. In the U.S., ownership of the health care system is mainly in private hands, though federal, state, county and city governments also own certain facilities. The non-profit hospitals share of total hospital capacity has remained relatively stable (about 70%) for decades. There are also privately owned for-profit hospitals as well as government hospitals in some locations, mainly owned by county and city governments. The Hill-Burton Act was passed in 1946, which provided federal funding for hospitals in exchange for treating poor patients. There is no nationwide system of government-owned medical facilities open to the general public but there are local government-owned medical facilities open to the general public. The U.S. Department of Defense operates field hospitals as well as permanent hospitals via the Military Health System to provide military- funded care to active military personnel. Glove Demand in USA The market for disposable medical gloves will be worth $4 billion by 2017, according to projections from a report published by Global Industry Analysts (GIA). The report cites rising emphasis on health, occupational safety and hygiene among health care workers as factors responsible for growth. Gloves are essential in medical environments, especially in the operating room. Dozens of pairs are used in a single surgical case and with the number of surgical procedures performed in the U.S. and across the globe rising, it makes sense that the gloves market is due for sustained growth. The U.S. is still the largest market for gloves, though Asian markets are the fastest growing, according to the GIA report. The Asian medical glove industry, long known for its production of natural rubber latex, an abundant natural resource in many Asian countries, is beginning to witness major changes. With growing demand for powder-free and synthetic gloves in domestic and foreign markets, Asian manufacturers are beginning to diversify their product portfolio to incorporate powder-free and latex-free medical gloves. Rising awareness regarding latex allergies have led to increased innovation and technology breakthroughs in synthetic variants. The number of health care facilities going entirely latex-free continues to grow, as glove manufacturers work to create a synthetic product that matches the low cost and tactile sensitivity that have made natural rubber latex the longtime preference of surgeons and nurses. Manufacturers witnessed a spike in sales of powder-free surgical gloves in 2014 according to GIA. Ansell North America, said powder-free surgical gloves were the fastest-growing medical product category in 2013 for Ansell. 3 In US, non-latex gloves sales grew at a rate of greater than 20 percent in the last fiscal year, driven by sales of the company’s Poly-Isoprene surgical gloves. The category includes the free of latex and chemical accelerators, and other type is 30 percent thinner than standard surgical gloves. Health care workers’ preference for synthetic gloves continues to grow in the years ahead. Awareness involved increasing of latex (type I) and chemical (type IV) allergies, as well as the significant potential cost implications related to these reactions, which can range from a simple rash to a life-threatening anaphylactic event. Due to this awareness, Neoprene and Poly-Isoprene gloves have been embraced as an alternative to latex gloves and subsequently, latex free facilities are becoming more prevalent. Glove Demand in Latin America For Latin America, Brazil and Mexico are the two largest markets for medical gloves. In 2013, demand for the gloves in Brazil and Mexico are estimated at 2.5 billion pairs (US$249 million) and 1.3 billion pairs (US$102.8 million) respectively. For latex surgical glove, Brazil and Mexico recorded demand at 283.6 million pairs and 253.2 million pairs respectively. The market growth in Latin America as a whole is driven mainly by healthcare reforms. Other factors affecting the growth in the region are population growth, ageing population and recurring H1N1 influenza virus outbreaks which increased physicians’ visits. New healthcare laws and regulations also have positive impacts to the increase of glove usage in this region. Consumption of latex surgical gloves and examination gloves accounted to 92% of the total glove demand. 4 3.0 TRADE STATISTICS 3.1 MULTILATERAL TRADE a) Rubber and Rubber Products i) Top Ten Suppliers of Rubber and Rubber Products to United States United States Import Statistics Commodity: Rubber & Rubber Products Year To Date: January - December Partner US$ Million % Share % Change Rank Country 2014/2013 2012 2013 2014 2012 2013 2014 World 55,980.6 56,251.5 57,947.6 100.00 100.00 100.00 3.02 1 China 23,099.4 23,966.2 24,630.1 41.26 42.61 42.50 2.77 2 Vietnam 2,630.8 3,137.23,824.1 4.70 5.58 6.60 21.90 3 Mexico 3,598.7 3,597.43,753.6 6.43 6.40 6.48 4.34 4 Canada 3,562.2 3,343.43,255.4 6.36 5.94 5.62 - 2.63 5 Indonesia 3,646.9 3,476.0 3,128.9 6.51 6.18 5.40 - 9.99 6 Japan 2,969.3 2,722.9 2,651.4 5.30 4.84 4.58 - 2.62 7 Thailand 2,587.4 2,271.72,184.1 4.62 4.04 3.77 - 3.86 8 South Korea 2,206.4 1,863.4 1,860.7 3.94 3.31 3.21 - 0.14 9 Malaysia 1,441.9 1,435.7 1,430.1 2.58 2.55 2.47 - 0.39 10 Germany 1,260.5 1,253.01,339.4 2.25 2.23 2.31 6.90 Source: World Trade Atlas ii) Leading Rubber & Rubber Products Imported by United States United States Import Statistics Commodity: Rubber & Rubber Products Year To Date: January - December US$ Million % Share % Change Commodity Description 2014/2013 2012 2013 2014 2012 2013 2014 Rubber & Rubber Products 55,980.6 56,251.5 57,947.6 100 100 100 3.02 New Tires 401110 7,423.5 7,840.9 7,677.1 13.26 13.94 13.25 -2.09 For Cars Footwear, Outer Sole 640399 6,363.3 6,653.8 6,490.5 11.37 11.83 11.2 -2.45 Rubber Footwear, Outer Sole 640299 4,929.5 4,871.7 4,751.8 8.81 8.66 8.2 -2.46 & Upper Rubber New Tires For Buses 401120 4,139.4 3,988.7 4,332.4 7.39 7.09 7.48 8.62 Or Trucks Footwear, Out Sole 640391 Rubber & Upper 3,518.1 3,706.8 4,284.8 6.28 6.59 7.39 15.59 Leather Source: World Trade Atlas 5 b) Rubber iii) Top Ten Suppliers of Rubber to United States United States Import Statistics Commodity: Rubber (Upstream) 4001-4006 Year To Date: January - December Partner US$ Million % Share % Change Rank Country 2012 2013 2014 2012 2013 2014 2014/2013 World 6,083.2 4,854.8 4,416.1 100.00 100.00 100.00 - 9.04 1 Indonesia 2,073.4 1,661.7 1,263.3 34.08 34.23 28.61 - 23.97 2 Canada 615.7 566.4 573.1 10.12 11.67 12.98 1.19 3 Thailand 714.5 428.1 344.1 11.74 8.82 7.79 - 19.62 4 Japan 302.9 272.1 275.5 4.98 5.61 6.24 1.25 5 South Korea 277.4 226.0 274.1 4.56 4.65 6.21 21.29 6 Germany 244.7 208.1 234.6 4.02 4.29 5.31 12.75 7 Mexico 294.8 186.7 221.8 4.85 3.85 5.02 18.77 8 France 213.6 196.7 200.4 3.51 4.05 4.54 1.92 9 Russia 146.9 186.8 163.2 2.41 3.85 3.70 - 12.62 10 Malaysia 144.8 114.0 100.1 2.38 2.35 2.27 - 12.26 Source: World Trade Atlas iv) Leading Rubber Commodity Imported by United States United States Import Statistics Commodity: Rubber (Upstream) 4001-4006 Year To Date: January - December US$ Million % Share % Change Commodity Description 2012 2013 2014 2012 2013 2014 2014/2013 Rubber (Upstream), 4001-4006 6,083.2 4,854.8 4,416.1 100 100 100 -9.04 4001 Natural Rubber 3,382.3 2,558.8 1,954.1 55.6 52.71 44.25 -23.63 4002 Synthetic Rubber 1,979.4 1,606.4 1,736.2 32.54 33.09 39.32 8.08 Compounded 592.0 571.4 602.7 9.73 11.77 13.65 5.48 4005 Rubber 4003 Reclaimed Rubber 61.2 51.2 48.8 1.01 1.05 1.11 -4.67 Unvulcanized 33.3 35.3 42.3 0.55 0.73 0.96 19.78 4006 Rubber 4004 Waste Of Rubber 35.1 31.6 32.0 0.58 0.65 0.72 1.15 Source: World Trade Atlas 6 c) Rubber Products a.
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