The world's largest condom manufacturer, Malaysia's Karex Bhd, has warned of impending shortages and significant price increases as the ongoing conflict in Iran severely disrupts global supply chains. The company, which produces over five billion condoms annually, supplies leading brands such as Durex and Trojan, as well as critical state health systems including Britain's NHS and United Nations aid programmes.
Price hikes and demand surge
Karex is set to increase prices by 20 to 30 per cent, with further hikes possible, as it grapples with a surge in demand and escalating costs. Chief Executive Goh Miah Kiat told Reuters: "The situation is definitely very fragile, prices are expensive... We have no choice but to transfer the costs right now to the customers."
Demand for condoms has risen by approximately 30 per cent this year, driven by heightened awareness and need. However, shipping disruptions have further exacerbated shortages, leaving many clients with unusually low stockpiles.
Supply chain disruptions
Since the conflict began in late February, Karex has faced increased costs for raw materials including synthetic rubber and nitrile used in manufacturing condoms, as well as packaging materials and lubricants such as aluminium foils and silicone oil. The war has strained energy and petrochemical flows, hindering procurement.
Karex joins a growing number of businesses, including medical glove manufacturers, encountering significant bottlenecks due to the Middle East crisis. Shipments to destinations like Europe and the United States now take nearly two months to arrive, compared to a month previously.
Impact on global stockpiles
Goh noted that global stockpiles of condoms have dropped significantly following deep spending cuts in foreign aid, particularly by the U.S. Agency for International Development last year. He said Karex has enough supplies for the next few months and is looking to boost output to meet growing demand.
"We're seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required," Goh added, emphasising that many developing countries do not have enough stock because of the extended delivery times.
