Rising raw material costs – along with higher demand – is expected to lead to higher prices for condoms, the world’s biggest producer has warned
The boss of the world’s biggest condom maker has warned it will hike prices by up to 30% – or even more – if the Iran war drags on.
Karex produces over five billion condoms annually and is a supplier to leading brands like Durex and Trojan, as well as the NHS and global aid programmes run by the United Nations.
The Malaysian firm says it is also seeing a surge in condom demand as rising freight costs and shipping delays have left many of its customers with lower stockpiles than usual.
Another reason is believed to be couples worried about rising living costs, suggesting the fall-out from the Middle East conflict even have an impact on birth rates.
President Donald Trump has been blamed for pushing up the cost of fuel and food because of the US-Israel war with Iran – and now it seems condoms can be added to the list. Critics have branded the spike in household bills as a result of the conflict “Trumption”.
Figures from the Office for National Statistics revealed UK inflation rose from 3% to 3.3% in March, the first full month of the conflict that erupted at the end of February.
Goh Miah Kiat, its chief executive, said: “The situation is definitely very fragile, prices are expensive… We have no choice but to transfer the costs right now to the customers.”
The firm joins a growing list of companies, including medical glove makers, bracing for supply chain bottlenecks as the Iran war impact the flow of energy and petrochemical from the Middle East, disrupting the procurement of raw materials.
Since the conflict began in late February, Karex has seen costs increase for everything from synthetic rubber and nitrile used in manufacturing condoms to packaging materials and lubricants such as aluminium foils and silicone oil.
Goh said Karex has enough supplies for the next few months and is looking to boost output to meet growing demand, which has soared by about 30% this year. Shipping disruptions had further exacerbating shortages, he said.
Karex’s shipments to destinations such as Europe and the United States are now taking close to two months to arrive, compared to a month previously.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said, adding that a lot of developing countries do not have enough stock because it takes time for the products to reach them.
“In bad times, the need to use condoms is even more because you’re uncertain with your future, whether you’d still have a job next year,” he told Bloomberg. “If you have a baby right now, you’ll have one more mouth to feed.”
