The CEO of the largest condom manufacturer globally has issued a warning of potential price increases of up to 30% or more if the ongoing Iran conflict persists. Karex, which produces over five billion condoms annually for renowned brands like Durex and Trojan, as well as organizations such as the NHS and UN aid programs, is facing heightened demand due to supply chain disruptions and increased shipping costs.
The Malaysian company attributes the surge in condom orders to customers depleting their inventories faster than usual, partly driven by concerns over escalating living expenses amid the Middle East turmoil. This situation has led to speculation that the conflict could impact birth rates.
Blamed for escalating fuel and food prices due to the US-Israel conflict with Iran, President Donald Trump faces criticism as the cost of condoms is now expected to rise. Referred to as “Trumption” by detractors, the conflict has contributed to a rise in UK inflation to 3.3% in March, reflecting the first full month since hostilities began.
Goh Miah Kiat, the company’s chief executive, acknowledged the challenging environment, stating that they have no option but to transfer the increased costs to consumers. Karex is among several businesses anticipating supply chain disruptions as the Iran conflict affects energy and petrochemical flows from the Middle East, impacting raw material procurement.
Since the conflict’s onset in late February, Karex has observed rising costs across various production inputs, including synthetic rubber, nitrile, and packaging materials. Despite possessing adequate supplies for the coming months, the company plans to ramp up production to meet the surging demand, which has risen by approximately 30% this year. Shipping delays have worsened shortages, with delivery times to key markets like Europe and the US extending to nearly two months.
Goh highlighted the challenge of condoms being stuck on vessels en route to critical destinations, particularly affecting developing nations that face delays in receiving shipments. Stressing the importance of condom use during uncertain times, he emphasized that additional mouths to feed, as with a new baby, can exacerbate financial strain.
