Karex Bhd, the Malaysian manufacturer that produces over 5 billion condoms each year, announced a planned price increase of 20% to 30% for its products, with the possibility of additional hikes if supply-chain disruptions continue. The company’s chief executive, Goh Miah Kiat, told Reuters that pressures stemming from the Iran war have raised costs across the manufacturing and logistics chain.
"The situation is definitely very fragile, prices are expensive... We have no choice but to transfer the costs right now to the customers," Goh said, citing a broad rise in expenses that the company can no longer absorb.
Karex supplies global household names as well as public-health programmes. Its customers include major consumer brands and state health systems such as Britain’s NHS, along with international aid efforts managed by the United Nations. The company’s scale and customer base mean its pricing and supply moves have wide reach across both commercial and aid channels.
Since the conflict began in late February, Karex reported cost increases for a range of inputs used in condom production and packaging. These include raw materials such as synthetic rubber and nitrile, plus packaging materials and lubricants like aluminium foils and silicone oil. At the same time, freight costs have risen and shipping delays have lengthened transit times.
Goh said the combined effect of rising input prices and slower logistics has left many customers with lower-than-normal stockpiles, even as demand has grown. Karex has recorded an approximately 30% increase in condom demand this year. That higher demand, together with delayed deliveries, has pressured global inventories.
Shipments to markets such as Europe and the United States are now taking nearly two months to arrive, compared with about one month previously, according to Goh. "We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required," he said, noting that these transit delays contribute to shortages, particularly in developing countries that already lack sufficient reserves.
The company stated it currently has enough supplies for the coming months and is working to raise production to meet the stronger demand. Karex also linked the decline in global stockpiles to significant cuts in foreign aid spending, especially reductions by the U.S. Agency for International Development last year, which reduced replenishment of public-health inventories.
Implications and context
- Price increases will be applied directly to customers to offset elevated input and logistics costs.
- Longer shipping times and higher freight charges are contributing to tighter inventories globally.
- Public-health procurement and international aid programmes face heightened pressure as global stockpiles have fallen.