Why condoms may soon get costlier worldwide — blame the Iran war

The Iran war is now affecting something far more intimate than oil prices. Karex Bhd, the world's largest condom producer, has announced plans to raise prices by 20% to 30%, and potentially more, as supply chain disruptions stemming from the conflict drive up costs across its entire manufacturing operation.

The Malaysian company, which produces over 5 billion condoms annually and supplies brands including Durex and Trojan as well as Britain's NHS and United Nations aid programmes, says it has no choice but to pass the costs on.

"The situation is definitely very fragile, prices are expensive... We have no choice but to transfer the costs right now to the customers," CEO Goh Miah Kiat told Reuters.

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What the war has disrupted

Since the conflict began in late February, Karex has seen costs rise across virtually every input in its production process. Synthetic rubber and nitrile used in manufacturing, packaging materials, aluminium foils, and silicone oil have become more expensive as the Iran war strains energy and petrochemical flows from the Middle East.

Shipping has compounded the problem. Karex's shipments to Europe and the United States, which previously took around a month to arrive, are now taking close to two months. Rising freight costs and the resulting delays have left many of the company's customers with lower stockpiles than usual, which in turn is pushing demand higher.

Goh said demand for condoms has risen about 30% this year, with shipping disruptions further exacerbating shortages already visible in global supply chains.

A shortage years in the making

The timing is particularly difficult. Global condom stockpiles had already dropped significantly following deep cuts in foreign aid spending, particularly from the US Agency for International Development last year, leaving the supply chain with little buffer when the Iran war hit.

Karex says it currently has enough supplies for the next few months and is looking to boost output to meet growing demand. But the broader challenge, of raw material costs, shipping delays and thinning inventories, is not expected to resolve quickly.

The company joins a growing list of manufacturers, including medical glove makers, bracing for supply chain bottlenecks as petrochemical and energy flows from the Middle East remain disrupted. For Karex, the calculation is straightforward: until the situation stabilises, higher prices are unavoidable.

(With input from Reuters)