- Global condom supply faces disruption due to Iran conflict.
- Largest manufacturer Karex to increase prices by up to 30 percent.
- Soaring raw material and shipping costs impact production significantly.
A global shock from the ongoing Iran conflict is now rippling into an unexpected sector – condoms. The world’s largest condom manufacturer has warned of sharp price increases and potential supply disruptions as rising costs and logistical challenges hit production.
Malaysia-based Karex, which produces around five billion condoms annually, has said it will raise prices by up to 30 per cent. The company attributed the increase to soaring input costs, disrupted shipping routes and elevated freight charges, reported NYT.
Karex accounts for roughly one-fifth of global condom production, making its pricing decisions significant for both commercial markets and public health programmes worldwide.
Raw Material Costs Surge Amid War Impact
The company highlighted that the de facto closure of the Strait of Hormuz has driven up oil and gas prices, triggering a broader increase in the cost of raw materials.
Key inputs such as nitrile, synthetic rubber, packaging materials, silicone oil and aluminium foil have all become more expensive. In some cases, the spike has been dramatic.
“Some raw material prices have increased by 100 percent. We have no choice but to make adjustments now,” Goh Miah Kiat, the chief executive of Karex, said in an interview with The New York Times on Thursday.
Supply Chain Risks Could Halt Production
Karex relies on more than a hundred chemicals and materials sourced from across Asia and Europe. According to the company, even a shortage of a single critical component could disrupt manufacturing.
“If the war persists, a shortage of even one item could ripple through factories,” Goh indicated, warning that production could come to a halt.
“There will be jobs that will be at stake,” he added.
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Global Reach and Market Presence
The company supplies major global brands such as Durex and Trojan, and operates manufacturing facilities in Malaysia and Thailand, employing around 3,000 people.
Karex also sells its own ‘One’ brand, priced at around 9 ringgit for a pack of three, or just over $2, in Malaysia.
Impact on Public Health Programmes
Beyond retail markets, Karex has been a key supplier for government-backed AIDS prevention and family planning programmes.
However, this segment has already faced challenges after funding cuts to the US Agency for International Development (USAID), which supported condom distribution initiatives globally.
Demand Rising, Panic Buying Risks Emerge
Despite the cost pressures, the company has seen a rise in demand this year, particularly in developing economies.
Goh warned that if supply constraints worsen, consumers may begin stockpiling, adding further pressure to the supply chain.
“Everyone hopes that this ends fast and swiftly,” he said.
A Crisis Beyond Energy
While the Iran conflict has largely been viewed through the lens of energy markets, its impact is now spreading across industries in unexpected ways.
From fuel to everyday essentials, the disruption in supply chains is pushing up costs and raising concerns about availability, with even products like condoms now caught in the crossfire.
