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Iran war sending condom prices soaring, warns world's largest manufacturer
The global fallout from the Iran war could soon extend into the sex lives of people globally as the world’s largest condom maker warned that supply disruptions and the skyrocketing price of raw materials will trigger price increases and, in some places, shortages.
The CEO for Malaysia-based Karex, which makes one in every five condoms sold worldwide and is a supplier to major North American brands Durex and Trojan, said in interviews with Reuters and Bloomberg this week that the company will raise prices by 20 to 30 per cent in the months ahead as its stockpile of raw materials is depleted.
“We have been in the process of adjusting prices with most of our customers, and this is definitely one of the biggest price adjustments we’ve done in a very long time,” Goh Miah Kiat told Bloomberg.
He added that more increases could follow should the war drag on.
“The situation is definitely very fragile, prices are expensive,” he told Reuters. “We have no choice but to transfer the costs right now to the customers.”
National Post contacted Reckitt and Church Dwight, the respective parent companies for Durex and Trojan, but has not received a response.
Karex makes over five billion of the prophylactics for major brands annually, but also supplies government health systems, aid agencies and other global retailers.
The CEO said costs have surged since the U.S. and Israel offensive began in February, driven by shortages and higher prices for oil-derived materials in production and packaging. Silicone oil prices, for example, are up 30 per cent and nitril latex has doubled in cost, he said.
Furthermore, strict regulations for medical products make finding alternative materials challenging.
The company is also dealing with shipping delays and ballooning freight costs that have left some buyers with reduced inventories.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh told Reuters.
At the same time, the company estimated demand is up by 30 per cent this year alone, partly because reductions to foreign assistance programs, particularly the USAID cut by the U.S. President Donald Trump’s administration, are leading many aid agencies and developing countries to buy commercially, creating more buyers and more shortages.
The warning of looming price hikes has drawn attention in China, where Reuters said the topic generated tens of millions of views on the social media site Weibo and prompted some to talk about stockpiling.
Despite the price increase, Goh said the company doesn’t expect it to significantly curb demand at this time.
“In bad times, the need to use condoms is even more because you’re uncertain with your future, whether you’d still have a job next year,” he told Bloomberg.
“If you have a baby right now, you’ll have more mouths to feed.”
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