The CEO of the largest condom manufacturer globally has issued a warning about potential price increases of up to 30% or more if the ongoing conflict in Iran persists. Karex, which produces over five billion condoms annually and supplies renowned brands like Durex and Trojan, as well as organizations such as the NHS and the United Nations, is facing mounting demand due to heightened freight costs and delays in shipping that have depleted customer inventories.
The surge in condom orders is also attributed to concerns among couples regarding escalating living expenses, indicating a possible impact on birth rates stemming from the Middle East crisis fallout. President Donald Trump has been criticized for driving up fuel and food prices amid the US-Israel conflict with Iran, with condoms now facing price hikes as well, dubbed by critics as part of the “Trumption” effect.
Recent data from the Office for National Statistics shows a rise in UK inflation from 3% to 3.3% in March, coinciding with the onset of the conflict in late February. Goh Miah Kiat, the company’s chief executive, emphasized the fragile economic situation, necessitating cost transfers to customers to offset the heightened expenses.
Karex is among various companies, including medical glove manufacturers, bracing for supply chain disruptions as the Iran conflict impacts energy and petrochemical flows from the Middle East, causing challenges in sourcing raw materials. Since the conflict began, Karex has faced rising costs for key production inputs like synthetic rubber, nitrile, packaging materials, and lubricants, leading to the need for price adjustments.
Despite having sufficient supplies for the upcoming months, Karex is ramping up production to meet the escalating demand, which has surged by approximately 30% this year. Delays in shipping have worsened shortages, with shipments taking nearly two months to reach destinations like Europe and the US, compared to the previous one-month period.
Goh highlighted the predicament of condoms stuck on vessels en route to critical destinations, particularly affecting developing nations with limited stock due to prolonged delivery times. He emphasized the increased necessity for condoms during uncertain times, as individuals seek to manage future uncertainties, job security, and financial stability.