Condom Crisis Begins to Haunt the World, Prices High-Stocks Depleting

Jakarta, CNBC Indonesia - The world’s largest condom producer, Karex, plans to increase prices by 20% to 30%. The Malaysian company stated that the price hike could be even higher if supply chain disruptions continue due to the Iran war.

Karex said condom demand has risen by around 30%. CEO Goh Miah Kiat mentioned that rising logistics costs and delivery delays are causing condom stocks to deplete in the market.

“The situation is clearly very unfavourable, with costs becoming more expensive. Currently, we have no choice but to pass on these cost increases to customers,” Goh said in an interview with Reuters.

Karex produces more than 5 billion condoms every year. The company supplies several major brands such as Durex and Trojan.

Quoting the Guardian, since the conflict began at the end of February, Karex has been burdened by increased production costs, from synthetic rubber and nitrile used in condom manufacturing to packaging materials and lubricants like aluminium foil and silicone oil, said Goh.

He said Karex has sufficient stock for the next few months. The company is also trying to increase production to meet the rising demand, as global condom supplies have significantly declined following substantial cuts in foreign aid, particularly by the US International Development Agency last year.

Karex’s shipments to destinations like Europe and the United States now take nearly two months to arrive, whereas normally it is only one month.

“We see many condoms still on ships that haven’t reached their destinations but are very much needed by consumers,” said Goh.