Condom prices set to jump 30%, world’s largest producer blames Iran war, supply chaos, and a global shortage that’s leaving shelves empty.
According to its CEO, Goh Miah Kiat, Karex Bhd, the world’s largest condom maker, plans to raise prices by 20% to 30% because of problems in the supply chain that are getting worse because of the Iran war. The company makes more than 5 billion condoms a year for big brands like Durex and Trojan, as well as for the National Health Service and United Nations programs. However, the prices of the raw materials it needs, like synthetic rubber, nitrile, aluminum foil, and silicone oil, are going up. Goh said that the conflict has disrupted energy and petrochemical supplies from the Middle East, which has raised production costs and forced the company to pass those costs on to customers. At the same time, global demand has risen by about 30% because of lower stockpiles and cuts in foreign aid, especially from the US Agency for International Development. Shipping delays have made shortages even worse. For example, delivery times to markets like Europe and the United States have doubled to almost two months. This means that many developing countries have very low supplies even though there is a lot of demand.
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