Get you up to speed: Malaysia’s Karex Bhd increases condom prices by up to 30% amid supply chain issues
Karex Bhd, the world’s top condom producer, is increasing prices by up to 30% due to supply chain disruptions linked to the war in Iran. The company has reported a surge in condom demand while facing rising costs for raw materials used in manufacturing.
Karex Bhd, the world’s largest condom producer, is increasing prices by up to 30% due to supply chain disruptions caused by the war in Iran, according to CEO Goh Miah Kiat. The company has reported escalating costs for raw materials such as synthetic rubber and packaging due to the ongoing conflict.
Karex Bhd has indicated that condom prices could rise by up to 30% due to ongoing supply chain disruptions related to the war in Iran. The company is also experiencing a significant increase in demand, which is further straining its ability to maintain stock levels for clients, including Durex and Trojan.
The Iran war might make it more expensive to have sex | News World
Hoping to get a bit of action between the sheets this year? It might cost you more than you think.
The world’s top condom producer is hiking prices by up to 30% and placing the blame on Donald Trump’s war in Iran.
Malaysia’s Karex Bhd said prices could spike even further if supply chain disruptions persist due to the war in Iran.
Karex is also seeing a surge in condom demand as rising freight costs and shipping delays have left many of its customers with lower stockpiles than usual, CEO Goh Miah Kiat revealed.
‘The situation is definitely very fragile, prices are high… We have no choice but to transfer the costs right now to the customers,’ Goh said.
Karex produces over 5 billion condoms annually and is a supplier to leading brands like Durex and Trojan, as well as state health systems such as Britain’s NHS and global aid programmes run by the United Nations.
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The condom giant is joining a growing list of companies facing supply chain issues because of the ongoing conflict.
The company supplies condoms to Durex and Trojan (Picture: AFP)
The war has strained energy and petrochemical flows from the Middle East, disrupting procurement of raw materials.
Since the conflict began in late February, Karex has seen costs increase for everything from synthetic rubber and nitrile used in manufacturing condoms to packaging materials and lubricants such as aluminium foils and silicone oil.
Most of the raw materials are shipped through the vital Strait of Hormuz, a bottleneck area between the Arabian Peninsula and the Persian Gulf.
The war is also affecting energy and food prices. Earlier this month, it was revealed that the average UK household could spend more than £340 more each year because of the war’s impact.
Analysis by the Institute of Grocery Distribution (IGD) set out two possible scenarios for the conflict in the Middle East, and how they would impact supermarket prices back in the UK.
The condom company is facing supply chain issues (Picture: AFP)
Even though both assumed the disruption would be ‘relatively short-lived’ – possibly with a ceasefire secured and energy production freed up – neither was good news for inflation.
In the event of a ‘moderate energy price shock’, average food inflation would hit 4.8% – but an ‘intense energy price shock’ could kick it up to 6.4%.
For an average UK household with an annual grocery bill of £5,283, the latter scenario would mean an increase of £338 a year.
Joe Nellis, an economic advisor at accountants MHA, said: ‘For shoppers, this means tougher decisions each week: switching to cheaper alternatives, cutting back on non-essentials, or simply buying less.
‘Everyday items — from bread to fresh produce — are particularly exposed to rising input costs, meaning price increases can appear quickly on supermarket shelves.’
Clothes shop Next has also warned its prices are likely to increase as a direct result of the war on Iran, due to the rising costs of fuel and air freight.
The retailer said: ‘Beyond the next three months, if we see these costs persist, then we will begin to pass costs through as higher pricing – but for today that remains a contingency not a plan.’
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