Karex Bhd, the world’s largest condom producer, said on Tuesday it plans to increase prices by 20% to 30%, with the possibility of further hikes if supply chain disruptions continue due to the Iran conflict, according to its chief executive.
“The situation is definitely very fragile, prices are expensive… We have no choice but to transfer the costs right now to the customers,” Goh said.
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Karex Bhd manufactures more than 5 billion condoms each year and serves as a key supplier for major brands such as Durex and Trojan, as well as public health systems including the United Kingdom’s National Health Service and global aid programs operated by the United Nations.
The company is among a growing number of manufacturers, including medical glove producers, facing pressure from potential supply chain disruptions as the Iran conflict strains energy and petrochemical exports from the Middle East, affecting the procurement of key 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.
He said Karex has enough supplies for the next few months and is looking to boost output to meet growing demand, as global stockpiles of condoms have dropped significantly following deep spending cuts in foreign aid, particularly by the U.S. Agency for International Development last year.
Demand for condoms has risen about 30% this year, with shipping disruptions further exacerbating shortages, he said.
Karex Bhd said its shipments to regions such as Europe and the United States are now taking nearly two months to reach their destinations, up from about one 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.
