Condom prices could rise 30% due to Iran war, says world’s top producer Karex

Karex Bhd, the world's largest condom producer, anticipates raising prices by 20-30%, potentially more, due to supply chain disruptions stemming from the Iran war. The company cites increased costs for raw materials like synthetic rubber and packaging, along with rising freight costs and shipping delays. Demand for condoms has surged by 30% this year, further straining supplies as shipments to regions like Europe and the US are taking twice as long. Karex, which supplies major brands and global health organizations, is working to increase production to meet demand amidst dwindling global stockpiles caused by foreign aid cuts. The company is passing increased costs to customers due to the fragile situation.

Karex, Malaysia's top condom producer, plans to raise prices by 20% to 30% due to the impact of the Iran war on its supply chain. The company produces over 5 billion condoms annually and supplies leading brands such as Durex and Trojan, as well as state health systems like Britain's NHS. Rising freight costs and shipping delays have led to a surge in condom demand, leaving customers with lower stockpiles than usual. CEO Goh Miah Kiat stated that the situation is "fragile" and prices are expensive, resulting in a need to transfer costs to customers. The Iran war has disrupted energy and petrochemical flows from the Middle East, affecting the procurement of raw materials such as synthetic rubber and nitrile. Karex joins other companies, including medical glove makers, bracing for supply chain bottlenecks due to the conflict.