Condoms to rise in price by 30%! Middle East fighting spills over into the global supply chain; the largest manufacturer, Karex, plans to raise prices

Due to ongoing fighting between the United States, Israel, and Iran that continues to disrupt raw-material supply, global leading condom manufacturer Karex has said that condom prices could rise by 20% to more than 30%. This conflict not only affects the global energy market, but further increases manufacturing costs for a wide range of consumer products, putting the global supply chain to a severe test.

Hormuz Strait is blocked, petrochemical raw-material supply is disrupted

When Karex CEO Goh Miah Kiat spoke in a media interview, he pointed out that because condom manufacturing relies heavily on oil-derived products, since the outbreak of conflict in late February, production costs have surged rapidly. Basic petrochemical raw materials have been affected as well, including ammonia used to preserve latex, and silicone oil used as a lubricant.

In addition to crude oil, petrochemical feedstocks such as naphtha used to produce packaging materials are also facing shortages, forcing Asian manufacturers that rely heavily on imported raw materials to raise prices to reflect costs.

Unclear economic outlook, condom demand jumps against the trend by 30%

Despite the raw-material supply crisis, global demand for condoms has not declined—instead, it has increased. Goh said that this year, global condom demand has grown substantially by about 30%. He analyzed that during periods of economic downturn and uncertainty about the future, people are more cautious about family-planning decisions to avoid adding additional financial burdens, which in turn drives up condom usage demand.

Karex produces more than 5 billion condoms every year. In addition to supplying internationally well-known brands such as Durex and Trojan, it is also an important supplier for the UK National Health Service (NHS) and the United Nations aid program, with enormous market influence.

Freight costs soar, longer delivery times intensify the global shortage crisis

Beyond rising manufacturing costs, challenges in sea transport have compounded the shortage problem. Goh revealed that currently, the delivery time for shipping products to Europe and the United States has been extended from about one month in the past to nearly two months. Many urgently needed condoms are still stuck on cargo ships at sea and have not yet arrived at their destinations, leading many developing countries to face a severe risk of inventory running out. Although Karex currently still has several months of inventory to meet demand and is working to increase production, given the extremely fragile state of the supply chain, the company has no choice but to pass the increased costs on to customers and consumers.

Middle East conflict affects the global supply chain, everyday necessities face inflation pressure

According to the latest research, airfares have already risen 24% compared with the same period last year; shipping disruptions in the Persian Gulf have also led to higher fertilizer prices, and there has been a shortage of helium used to manufacture semiconductor chips. In addition, because manufacturers have difficulty obtaining raw materials, the bottled water industry is under extreme pressure as well; higher transportation costs will also drive up the prices of everyday necessities such as sugar, dairy products, and fruit. Although U.S. President Donald Trump announced that the ceasefire agreement with Iran will be extended until negotiations make progress, until geopolitical risks are completely eliminated, global consumers are likely to continue facing inflationary pressure from rising prices.

This article Condom prices will rise by 30%! Middle East fighting has spread to the global supply chain; the largest manufacturer Karex plans to raise prices as early as—first appeared in Chain News ABMedia.