- Karex, the world’s largest condom manufacturer, warns of price hikes of up to 30%
- Rising costs linked to disruption in oil-linked raw materials due to the Iran conflict
- The company supplies major brands like Durex, Trojan, and public health systems such as the NHS
- Global shipping delays and energy shocks are affecting multiple industries
- Wider economic pressure seen in air fares, fertiliser, and food supply chains
The world’s largest condom producer, Karex Berhad, has warned that prices for its products could rise sharply as global supply chains continue to feel the impact of ongoing geopolitical tensions involving Iran. The company says production costs have climbed significantly, forcing it to consider price increases of up to 30 per cent or even higher. The warning highlights how far-reaching the effects of global conflict have become beyond traditional energy markets.
Karex’s chief executive, Goh Miah Kiat, explained that the situation has become increasingly difficult since the escalation of the conflict. The firm, which produces billions of condoms annually, supplies well-known global brands such as Durex and Trojan, as well as public health systems including the UK’s NHS. According to him, the pressure is now being felt across every stage of production and distribution.
At the centre of the problem is the disruption of global oil and petrochemical supply routes linked to tensions in the Middle East. The Strait of Hormuz, a critical shipping passage for global energy, has been affected by instability following military exchanges involving Iran, the United States, and Israel. This route normally carries a significant share of the world’s crude oil and liquefied natural gas.
Because of this disruption, materials derived from oil have become more expensive and harder to source. Karex depends on such inputs, including ammonia used in latex preservation and silicone-based lubricants essential for production. The company says these shortages are directly pushing up manufacturing costs and squeezing supply chains.
Despite rising costs, demand for condoms has also increased sharply this year, adding further strain on supply. The company reports demand has grown by around 30 per cent, a trend it links partly to global uncertainty and changing consumer behaviour. At the same time, higher shipping charges and logistical delays are making distribution more expensive and less reliable.
Goh noted that economic uncertainty often leads to increased use of contraceptives, as people become more cautious about long-term financial commitments. He explained that households tend to avoid adding extra financial pressure during unstable periods. This combination of higher demand and reduced supply has created a tight market environment for essential products.
The ripple effects of the conflict extend far beyond the condom industry, affecting several key sectors worldwide. Air travel has become more expensive, with reports showing economy fares rising by more than 20 per cent compared to last year. Fertiliser prices have also increased, while shortages of helium are disrupting semiconductor manufacturing.
Other industries, including bottled water production, are struggling to secure raw materials due to shipping constraints. The United Nations has also warned that rising transport costs could push up the prices of food items such as sugar, dairy, and fruit. These developments show how interconnected global supply chains remain under pressure.
The situation remains uncertain as diplomatic discussions involving the United States and Iran continue without a clear resolution. Energy markets and trade routes remain sensitive to any developments, with analysts warning that further escalation could deepen global inflation pressures. For now, businesses across multiple sectors are preparing for continued volatility.
For Karex, the immediate concern is maintaining production while managing rising costs. The company says it will continue monitoring the situation closely before making final pricing decisions. As global tensions persist, consumers may soon feel the impact not only in energy and food prices but also in everyday health products.
