Concerns are mounting over a potential spike in the cost of safe sex products as the ongoing conflict involving Iran continues to strain global supply chains, with industry leaders warning that condom prices could soon rise significantly.
In an interview with Reuters, Goh Miah Kiat, Chief Executive Officer of Karex Berhad, the world’s largest condom manufacturer, revealed that the company may be compelled to increase prices by between 20% and 30% if current disruptions persist. The challenges, which began intensifying in late February, are largely tied to instability around the Strait of Hormuz, a critical global shipping route now affecting the flow of essential raw materials.
“The situation is extremely fragile, and costs have gone up sharply,” Goh said. “At this point, we have little option but to pass those costs on to consumers.”
Karex, headquartered in Malaysia, is a major global supplier of sexual health products, producing over 5 billion condoms annually under brands such as ONE, Trustex, Carex, and Pasante. The company exports to more than 130 countries and also manufactures personal lubricants, medical gloves, catheters, and probe covers.
Beyond rising production costs, Goh highlighted growing logistical challenges, including shipment delays that have left large quantities of products stranded at sea.
“We’re seeing shipments delayed, with condoms sitting on vessels that have yet to reach destinations where they are urgently needed,” he noted.
While Karex has indicated it currently holds enough inventory to meet demand for the next few months, uncertainty looms over when price adjustments could take effect.
The broader economic fallout from the Iran conflict has largely focused on surging oil and gas prices. However, experts warn that lesser-known petroleum byproducts, known as feedstocks, are also in short supply. These materials are critical for manufacturing plastics and other components used in packaging and production.
Among the affected inputs are naphtha, widely used in packaging, as well as silicon oil and ammonia, both essential in condom manufacturing. According to Angie Gildea, Global Head of Oil and Gas at KPMG, these shortages are an overlooked but serious concern.
“While crude oil dominates the headlines, petrochemicals and feedstocks are also becoming scarce,” she explained, noting that approximately 41% of Asia’s naphtha supply originates from the Middle East.
The ripple effects extend beyond raw materials. Several Southeast Asian nations, including Myanmar and Cambodia, have begun implementing fuel rationing measures. In countries like Vietnam, rising transportation costs have disrupted daily life, with some schools issuing stay-at-home directives due to unaffordable commutes.
Industry analysts warn that these challenges could further impact manufacturing, as workers struggle to access production sites, potentially slowing output and delaying exports to key global markets.
As the conflict continues to unfold, both manufacturers and consumers are bracing for the economic consequences, ones that may soon be felt in even the most essential aspects of daily life.
Source: CNN
