The world’s largest condom manufacturer has warned of sharp price increases as the ongoing Iran conflict disrupts global supply chains and drives up production costs.
Malaysia-based Karex, which produces more than five billion condoms annually, says prices could rise by up to 30 per cent or more if the situation persists, with shortages of key raw materials already affecting output and delivery timelines.
Chief Executive Goh Miah Kiat said the company has little option but to pass rising costs on to consumers. “The situation is definitely very fragile, prices are expensive… We have no choice but to transfer the costs right now to the consumers,” he said.
The firm, which supplies major brands such as Durex and Trojan as well as public health systems including Britain’s NHS and United Nations programmes, has been hit by disruptions to petrochemical supplies linked to tensions in the Middle East.
Global shipping routes have been affected following threats to vessels in the Strait of Hormuz, a critical passage for oil and gas shipments. The disruption has pushed up the coast of oil-derived materials such as ammonia, silicone lubricants and synthetic rubber, all essential in condom production.
Goh said manufacturing costs have risen across the board, including packaging materials and nitrile used in production, while delivery times have nearly doubled. Shipments that previously took about a month are now taking close to two months to reach markets in Europe and the United States.
“We are seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” he said.
At the same time, demand for condoms has surged by about 30 per cent this year, further straining supply. “In bad times, the need to use condoms is even more because you’re uncertain with your future, whether you’d still have a job next year,” Goh said. “If you have a baby right now, you’ll have one more mouth to feed.”
The supply pressures came as global stockpiles have already been weakened by cuts in foreign aid, particularly from the United States, raising concerns about access in developing countries where supplies are often limited.
The price increases highlight the broader economic impact of the Iran conflict which has already disrupted energy markets and is now pushing up the cost of a range of everyday goods worldwide.
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