The war with Iran has hit the condom market: Karex is preparing new prices
22 April 07:29
The world’s largest condom manufacturer, the Malaysian company Karex Bhd, has warned of a possible 20–30% price increase due to supply chain disruptions caused by the war with Iran. This was announced by the company’s CEO, Ho Mia Kiat, according to "Komersant Ukrainian", citing Reuters.
According to him, if disruptions in logistics and raw material supplies persist, prices could rise even further.
Why condoms may become more expensive
Karex explained that due to the war with Iran, costs have risen for nearly all key components used in condom production. These include synthetic rubber, nitrile, packaging materials, aluminum foil, and silicone oil, which are necessary for manufacturing and packaging the products. The company directly links this to tensions in the Middle East’s energy and petrochemical markets.
A Karex executive stated that the cost situation remains unstable, so the company is forced to pass on the additional costs to customers. This means that price increases could affect both major brands and government and humanitarian procurement.
What is known about Karex
Karex is the world’s largest condom manufacturer. The company produces over 5 billion condoms annually and supplies products to well-known brands, including Durex and Trojan.
Karex also works with government healthcare systems, including the UK’s NHS, as well as international aid programs under the auspices of the UN.
Why demand has risen
Amid logistics challenges, the company is also seeing a sharp rise in demand. According to Karex’s CEO, demand for condoms has increased by approximately 30% this year.
One reason is that many clients now have lower stockpiles than usual due to delivery delays and higher shipping costs.
Another factor is the reduction in international aid programs. Reuters reports that following significant cuts in external funding, particularly from USAID last year, global condom stocks have dropped significantly. This, combined with new logistical disruptions, has further exacerbated the situation in the market.
How long are shipments delayed?
According to the head of Karex, while deliveries to Europe and the U.S. used to take about a month, the journey can now take nearly two months. The company notes that a large volume of products is effectively “stuck” on ships and is not reaching destination markets on time.
This could have a particularly severe impact on developing countries, where inventories of such goods are lower and it is harder to quickly make up for delays. This is already leading to supply strains and could put even more pressure on prices.
Will there be enough raw materials and products?
The company says it has enough raw material reserves to last for the next few months. Additionally, Karex plans to increase production to meet higher demand.
At the same time, the company makes no secret of the fact that if disruptions due to the war with Iran persist for a long time, pressure on prices and logistics will also remain high.
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