Goh Miah Kiat, the CEO of Karex, the world’s largest condom manufacturer, announced that the company may increase prices by up to 30% or more if the ongoing conflict in Iran continues to disrupt the supply of essential raw materials.
In statements to media outlets, Goh highlighted that production costs have surged significantly since the onset of the conflict. Karex, based in Malaysia, produces over five billion condoms annually and supplies prominent global brands such as Durex and Trojan, as well as health systems like the UK’s NHS.
Goh’s remarks came during interviews with Reuters and Bloomberg, and the BBC has reached out for further comments from the company.
The conflict has severely impacted global oil supplies, particularly after Iran threatened to target vessels in the Strait of Hormuz in response to US and Israeli airstrikes. This situation has effectively restricted access to the waterway, causing widespread disruptions to international supply chains. Approximately one-fifth of the world’s crude oil and liquefied natural gas typically transits through this crucial route.
Karex depends on oil-derived materials, including ammonia for latex preservation and silicone-based lubricants. Goh noted that condom demand has increased by about 30% this year, exacerbated by rising freight costs and shipping delays that have led to shortages.
He remarked, “In challenging times, the need for condoms rises as uncertainty looms over job security and future prospects. Having a child now means adding another mouth to feed.”
The anticipated price increase for condoms reflects the broader economic impact of the US-Israel conflict with Iran, which has already destabilized global energy markets and is now affecting the prices of various consumer goods.
The war has also triggered a rise in airfares, with the average cost of the cheapest economy tickets increasing by 24% compared to last year, according to recent research. Additionally, shipment disruptions in the Gulf have driven up fertilizer prices and caused a shortage of helium, essential for manufacturing computer chips.
The bottled water industry faces similar challenges, as manufacturers struggle to secure necessary raw materials.
Earlier this month, the United Nations cautioned that rising transportation costs would lead to higher prices for sugar, dairy, and fruits.
As of Wednesday, the status of peace negotiations between the US and Iran remained uncertain, following President Donald Trump’s announcement to extend a ceasefire until discussions advance.
