World’s Largest Condom Maker Karex to Raise Prices Due to Iran War Disruptions

Karex, the Malaysia-based manufacturer that produces more than five billion condoms annually and supplies global brands including Durex and Trojan, announced plans to increase prices by up to 30% or more due to supply chain disruptions caused by the ongoing Iran conflict.

Impact of Iran War on Global Supply Chains

The conflict has severely disrupted global oil supplies, particularly through the Strait of Hormuz, a critical chokepoint through which approximately one-fifth of the world’s crude oil and liquefied natural gas typically passes. These disruptions have affected the availability of petrochemical derivatives essential to condom manufacturing, including ammonia used to preserve latex and silicone-based lubricants.

Company Response to Rising Costs

Karex CEO Goh Miah Kiat stated in interviews with Reuters and Bloomberg that production costs have risen sharply since the conflict began, forcing the company to pass these increases on to consumers. He noted that freight costs have increased and shipping delays have worsened shortages, with containers of finished goods sitting idle on vessels unable to reach their destinations.

Despite the challenges, Goh confirmed that Karex maintains sufficient inventory to sustain operations for several months. He also observed that demand for condoms has increased by approximately 30% this year, attributing the rise to heightened uncertainty during turbulent times.

Broader Economic Implications

The price increases reflect wider economic pressures stemming from the conflict, which has already impacted global energy markets. Economists warn that sustained cost increases could lead to reduced consumer spending and further strain production capabilities, particularly in regions dependent on Middle Eastern energy supplies.

About Karex

Headquartered in Port Klang, Malaysia, Karex manufactures a range of products beyond condoms, including personal lubricants, gloves, medical catheters and probe covers. The company exports to over 130 countries and produces well-known brands such as ONE, Trustex, Carex, and Pasante.