Demand for condoms rose about 30 per cent this year, with shipping disruptions further exacerbating shortages, said Karex. (Image credits: iStock) Malaysia-based Karex Bhd, the world’s largest condom producer, is preparing to raise prices sharply as geopolitical tensions involving the US and Iran and supply chain disruptions push up costs. The company’s CEO has indicated that prices could climb by 20 per cent to 30 per cent, with the possibility of further increases if the situation worsens. The ongoing Iran war has created ripple effects across global supply chains, particularly impacting energy and petrochemical flows. This has directly affected raw materials crucial for condom manufacturing, including synthetic rubber and nitrile. Karex CEO Goh Miah Kiat highlighted the fragile nature of the current environment, stating, "The situation is definitely very fragile, prices are expensive... We have no choice but to transfer the costs right now to ?the customers." The company is now left with limited options as input costs surge across the board. In addition to raw materials, expenses related to packaging components such as aluminium foils and silicone oil have also climbed significantly since the conflict began earlier this year. While costs are escalating, demand for condoms has simultaneously surged. Karex reported a roughly 30 per cent increase in demand this year, driven partly by reduced stockpiles across global markets. Shipping disruptions have further intensified the imbalance between supply and demand. The company produces over 5 billion condoms annually and supplies major global brands like Durex and Trojan. It also serves public health systems such as the National Health Service and international aid programmes run by the United Nations. However, shipping delays have significantly slowed distribution. Deliveries to key markets like Europe and the United States now take nearly two months, double the usual timeframe. The situation is particularly concerning for developing nations, where supply shortages are becoming more acute. According to Goh, "We're seeing a lot more condoms actually sitting on vessels that have not ?arrived at their destination but are highly required." He added that many countries are struggling with limited access due to prolonged transit times. Compounding the issue, global stockpiles have already been strained following funding cuts to foreign aid programmes, including those linked to the United States Agency for International Development. Despite these challenges, Karex has indicated it currently holds enough inventory for the coming months and is working to ramp up production to address rising demand. Still, if supply chain problem persist, further price increases may be unavoidable. She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se... View More