GLOBAL SUPPLY SHOCK FORCES WORLD LEADING CONDOM MAKER TO RAISE PRICES
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The world’s largest condom manufacturer, Karex, is preparing to significantly increase its prices as global supply chains continue to feel the strain of the ongoing conflict involving Iran. According to the company’s chief executive, Goh Miah Kiat, prices could rise by as much as 30 percent or even higher if disruptions persist.
Karex, which produces more than five billion condoms annually, supplies major international brands such as Durex and Trojan, as well as public health systems including the United Kingdom’s NHS. This makes the company a critical player in global sexual health supply chains. Any change in its pricing has wide reaching implications for both consumers and public health programs.
The rising costs are closely tied to disruptions in global energy markets. Since Iran responded to military actions by the United States and Israel with threats targeting shipping routes, the Strait of Hormuz has effectively been compromised. This narrow passage is vital to global trade, with roughly one fifth of the world’s crude oil and liquefied natural gas passing through it under normal conditions.
As shipments slow and costs rise, industries that depend on petroleum based materials are facing increasing pressure. Karex is one such company. Its production relies heavily on oil derived inputs, including ammonia used in latex preservation and silicone based lubricants. As oil prices and transport costs climb, so too does the cost of manufacturing condoms.
Goh noted that production expenses have risen sharply since the conflict began. At the same time, demand for condoms has surged by around 30 percent this year. This increase is partly driven by economic uncertainty, with more people seeking to avoid unplanned pregnancies during unstable times. Goh explained that in uncertain conditions, individuals become more cautious about their financial future, making family planning even more important.
The impact of the conflict is not limited to the condom industry. Rising fuel prices and disrupted shipping routes are pushing up costs across a wide range of sectors. Air travel has become more expensive, with economy ticket prices rising significantly compared to last year. Fertiliser costs are also increasing, which could have long term effects on food production. In addition, shortages of helium, a key component in semiconductor manufacturing, are beginning to affect the technology sector.
