The world's largest condom manufacturer, Karex Bhd, has announced a price increase of 20 to 30 percent, attributing the move to ongoing supply chain disruptions stemming from the conflict between the United States, Israel, and Iran.
CEO cites fragile situation
Chief executive Goh Miah Kiat stated that further price hikes may be necessary if disruptions persist, as costs for raw materials and logistics continue to strain operations. "The situation is definitely very fragile, prices are expensive … We have no choice but to transfer the costs right now to the customers," he said.
Massive production scale
Karex produces over five billion condoms annually, supplying major brands such as Durex and Trojan, as well as public health systems including the United Kingdom's National Health Service and global programs run by the United Nations.
Surge in demand
The company is experiencing a surge in demand, with usage rising by approximately 30 percent this year. Goh attributed this to reduced global stockpiles, worsened by cuts in foreign aid funding, particularly from the U.S. Agency for International Development.
Supply chain challenges intensify
Supply chain challenges have intensified since the escalation of the Iran conflict in late February, affecting access to key materials such as synthetic rubber, nitrile, aluminum foil, and silicone oil, all essential for condom production.
Shipping delays
Shipping delays have compounded the issue, with delivery times to markets in Europe and the United States increasing from about one month to nearly two months. "We're seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required," Goh noted, emphasizing that shortages are especially severe in developing countries where supply chains are slower.
Outlook
Karex stated that it currently has sufficient materials for the next few months and is working to increase production to meet demand. However, the company warned that prolonged disruption could continue to impact availability and pricing globally.
