Global condom shortage risk due to Middle East conflict

The world's largest condom manufacturer warns of a potential price hike of up to 30% and a looming shortage, attributing it to disruptions in the global supply chain caused by the conflict in Iran.

Karex Bhd, a Malaysian company and the world's largest condom producer, announced plans to increase product prices by 20% to 30%. This hike could be even higher if supply chain disruptions from the conflict in Iran persist, according to *Reuters* on 21/4.

Goh Miah Kiat, CEO of Karex, stated in an interview on Tuesday that the company faces significant cost pressures. "The situation is very fragile, all costs are expensive... We have no choice but to pass these increased costs to customers," Goh said.

Ong Goh Miah Kiat, CEO of Karex, said the company expects price increases of 20% to 30%, which could be higher if supply chain disruptions due to the conflict in Iran continue. Photo: *Reuters*

Karex manufactures condoms, lubricants, gloves, medical catheters, and probe covers. The company owns popular condom brands such as ONE, Trustex, Carex, and Pasante, boasting an annual capacity exceeding 5 billion products.

According to its website, Karex exports goods to over 130 countries. Beyond supplying major brands like Durex and Trojan, the company also provides products to the British National Health Service (NHS) and United Nations global relief programs.

Currently, Karex and many other medical equipment manufacturers are struggling with supply bottlenecks. The ongoing conflict has disrupted the flow of energy and petrochemicals from the Middle East, which are critical for production.

Goh explained that since the conflict erupted in late February, prices for all raw materials have skyrocketed. This includes synthetic rubber and nitrile used in manufacturing, as well as packaging materials like aluminum foil, silicone oil, and lubricants.

The Karex leader stated that the company maintains sufficient supplies for the next few months and is working to boost production to meet market demand. Global condom reserves were already severely depleted after foreign aid programs faced significant budget cuts last year, particularly from the U.S. Agency for International Development (USAID).

Goh added that condom demand has increased by 30% this year. Compounding the issue, shipping disruptions have exacerbated the product shortage. Karex's export orders to Europe and the United States now face extended delays, with delivery times stretching to nearly two months, double the previous duration.

"We are seeing a large number of condoms stuck on ships that cannot dock, while this is a highly demanded item," the Karex leader noted.