Malaysia-based condom manufacturer Karex has warned that global supply chain disruptions linked to the ongoing Iran war could force the company to raise prices by 20% to 30%, according to an interview with its CEO, Goh Miah Kiat.
Goh told Reuters on April 21 that Karex is experiencing shortages in synthetic rubber and significant cost increases in some of its materials, with input prices doubling. Additionally, rising freight costs and prolonged shipping delays have reduced customer stockpiles, with shipment times to key markets like Europe and the United States nearly doubling from one month to two.
Despite these challenges, Karex has so far managed to meet demand but described the situation as “fragile” and indicated that transferring higher costs to customers may be unavoidable if disruptions persist.
Impact of Iran war on supply chains
The Iran war has effectively shut down maritime traffic through the Strait of Hormuz, a critical chokepoint for global energy flows. This disruption has affected petroleum-derived products, including plastics and synthetic rubber essential to many consumer goods.
The U.S. Department of Energy notes that petrochemicals derived from oil and natural gas are used in more than 6,000 products, from lipstick to sports equipment, highlighting the broad reach of supply interruptions triggered by the conflict.
Karex’s market position and challenges
Founded in 1988 and based in Johor, Malaysia, Karex claims to be the world’s largest condom manufacturer, producing approximately 5 billion condoms annually and exporting to over 130 countries.
The company supplies major brands, including U.S.-based Trojan and British company Durex. Karex CEO Goh highlighted that demand for condoms has increased about 30% this year, complicating supply amid ongoing logistical hurdles.
Why it matters
Condom prices rising by up to 30% could affect both manufacturers and consumers globally, especially as demand grows amid tighter supply chains. The situation underscores how geopolitical conflicts in key regions can ripple through global supply networks, impacting everyday products.
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