In news that could put a damper on your plans, the world's leading condom producer, Malaysia's Karex Bhd, has announced plans to raise prices by 20% to 30%, with the potential for more. CEO Goh Miah Kiat cited supply chain disruptions from the Iran war as the culprit, noting the situation is "definitely very fragile." He stated, "We have no choice but to transfer the costs right now to the customers."
Karex, which churns out more than 5 billion condoms a year for brands like Durex and Trojan and clients like the UK's NHS and UN aid programmes, is also seeing a surge in demand. This is partly because rising freight costs and shipping delays have left many customers with lower-than-usual stockpiles.
The condom giant joins a growing list of companies, including medical glove makers, bracing for supply chain bottlenecks. Since the conflict began in late February, Karex has faced cost increases for everything from synthetic rubber and nitrile to packaging materials and lubricants like aluminium foils and silicone oil.
Goh said Karex has enough supplies for the next few months and is looking to boost output. This need is driven by a significant drop in global condom stockpiles, following deep spending cuts in foreign aid, particularly by the US Agency for International Development last year. Demand for condoms has risen about 30% this year, with shipping disruptions making shortages worse.
Shipments to destinations like Europe and the United States now take 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 many developing countries are running low because it takes so long for products to reach them.