The world’s largest condom manufacturer announced Tuesday it will implement significant price increases as ongoing conflict in Iran creates major supply chain challenges for the Malaysian company.
Karex Bhd, which manufactures more than 5 billion condoms each year, plans to implement price hikes between 20% and 30%, with CEO Goh Miah Kiat warning costs could climb even higher if disruptions continue.
“The situation is definitely very fragile, prices are expensive… We have no choice but to transfer the costs right now to the customers,” Goh told Reuters during a Tuesday interview.
The Malaysian-based manufacturer supplies major contraceptive brands including Durex and Trojan, along with providing products to government health systems like Britain’s NHS and United Nations global aid initiatives.
According to Goh, the company has experienced increased expenses across all production materials since the Iran conflict started in late February. Manufacturing costs have risen for synthetic rubber and nitrile compounds used in condom production, as well as packaging supplies and lubricants including aluminum foils and silicone oil.
The supply chain disruptions come as Karex faces unprecedented demand, with orders jumping approximately 30% this year. The CEO attributes the surge partly to shipping delays that have left customers operating with reduced inventory levels.
Delivery times to key markets including Europe and the United States have nearly doubled, now requiring close to two months compared to the previous one-month timeframe.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh explained, noting that developing nations are particularly affected by stock shortages due to extended shipping times.
The manufacturer joins numerous other companies, including medical glove producers, preparing for continued supply chain obstacles as the Middle East conflict affects energy and petrochemical distribution from the region.
Despite current challenges, Goh said Karex maintains sufficient supplies for the coming months and is working to increase production capacity to address growing global demand, which has been further strained by reduced foreign aid spending, particularly cuts made by the U.S. Agency for International Development last year.
