Karex Bhd Warns Condom Prices May Rise Up to 30% Amid Iran War Supply Chain Strain

Malaysia’s Karex Bhd, the world’s largest condom producer, has announced plans to increase prices by 20% to 30%, with potential for further hikes if supply chain disruptions linked to the Iran war persist. The company, which manufactures over five billion condoms annually and supplies major brands including Durex and Trojan, as well as the UK’s NHS and UN aid programmes, cited rising costs for raw materials such as synthetic rubber, nitrile, aluminium foils, and silicone oil as key drivers of the price adjustment.

CEO Goh Miah Kiat told Reuters that the situation remains “very fragile,” with freight costs and shipping delays causing customers to hold lower-than-usual stockpiles. He stated that Karex has “no choice but to transfer the costs right now to the customers.” Since the conflict began in late February, the company has experienced increased expenses across its supply chain, prompting it to join a growing list of manufacturers—including medical glove producers—bracing for ongoing bottlenecks in energy and petrochemical flows from the Middle East.

Despite the challenges, Karex reported sufficient supplies for the next few months and is working to boost output to meet rising demand. The CEO noted a 30% increase in condom demand this year, exacerbated by shipping delays that now take close to two months for deliveries to Europe and the United States, up from one month previously. Global condom stockpiles have also declined due to reduced foreign aid spending, particularly cuts by the U.S. Agency for International Development.

The price increase reflects broader pressures on global supply chains, where geopolitical conflicts are disrupting access to critical commodities. Karex emphasized that any further increases will depend on the duration and severity of ongoing disruptions.