The global fallout from the Iran war may soon impact intimate lives worldwide, as the world's largest condom manufacturer warns of supply disruptions, skyrocketing raw material costs, and potential shortages. Karex, a Malaysia-based company that produces one in every five condoms sold globally and supplies major brands like Durex and Trojan, announced it will raise prices by 20 to 30 percent in the coming months.
Price adjustments and fragile situation
CEO Goh Miah Kiat stated that the company has been adjusting prices with most customers, calling it one of the biggest price adjustments in a long time. He emphasized the fragility of the situation, noting that further increases could follow if the war persists. “We have no choice but to transfer the costs right now to the customers,” he told Reuters.
Supply chain disruptions and rising costs
The U.S. and Israel offensive, which began in February, has driven up costs for oil-derived materials used in production and packaging. Silicone oil prices have risen by 30 percent, while nitrile latex costs have doubled. Strict regulations for medical products make finding alternative materials challenging. Additionally, shipping delays and ballooning freight costs have left some buyers with reduced inventories.
Demand surge and stockpiling
Demand for condoms has increased by 30 percent this year, partly due to cuts in foreign assistance programs like USAID, prompting aid agencies and developing countries to buy commercially. In China, the warning of price hikes generated tens of millions of views on Weibo, with some discussing stockpiling. Despite the price increase, Goh does not expect a significant drop in demand, noting that in uncertain times, the need for condoms rises.
National Post has contacted Reckitt and Church & Dwight, parent companies of Durex and Trojan, but has not received a response.
