The world’s largest condom manufacturer, Karex Berhad, has said it will increase the prices of its products by 20 per cent to 30 per cent due to supply chain disruption caused by the Iran war.

The Malaysian company, which produces over five billion condoms yearly, supplies major brands such as Durex and Trojan.

It also supplies condoms to public health institutions, including the United Kingdom’s National Health Service, and global aid programmes run by the United Nations.

Speaking with Reuters, Chief Executive Officer of Karex Berhad, Goh Miah, said the conflict, which started in late February, had led to an increase in the cost of raw materials used in production.

He said the prices of synthetic rubber, nitrile, packaging materials, aluminium foils and silicone oil had gone up since the crisis began.

Goh also said the company was recording higher demand as freight costs and shipping delays had reduced the stock levels of many customers.

“The situation is definitely very fragile, prices are expensive. We have no choice but to transfer the costs right now to ⁠the customers,” he said.

He added that shipments to Europe and the United States now take almost two months to arrive, compared to one month previously.

“We’re seeing a lot more condoms actually sitting on vessels that have not ⁠arrived at their destination but are highly required,” he said.

The CEO further said many developing countries were already facing shortages because the products were taking longer to get to them.

According to him, the company has enough supplies for the next few months and is working to increase output to meet the growing demand.

Karex is among the companies, including medical glove manufacturers, currently facing supply chain challenges as the Iran war continues to affect the sourcing of raw materials.

US-Israel-Iran war hits India’s condom industry

The development also follows earlier concerns in India, where the ongoing conflict in West Asia had already started affecting the country’s $860m condom manufacturing industry.

As earlier reported by The Guardian Nigeria on March 31, supply chain disruption triggered by the conflict pushed up production costs and created uncertainty for manufacturers across the country.

Industry players said shortages of key petrochemical materials used in production had begun to affect operations, with major companies such as HLL Lifecare Ltd, Mankind Pharma Ltd and Cupid Ltd coming under pressure from rising input costs and limited supply.

India produces over 400 crore condoms annually, while HLL Lifecare, a government-owned company, accounts for about 221 crore units yearly.

Findings showed that condom production depends heavily on silicone oil and ammonia. While silicone oil, used as a lubricant, had become scarce, ammonia, which is used to stabilise raw latex, was expected to record a price increase of between 40 and 50 per cent.

Packaging materials had also become more expensive, adding to the pressure on manufacturers.

An official of a condom manufacturing company told The Indian Express, “Supply constraints and price volatility in key inputs, such as PVC foil, aluminium foil, and packaging materials, have impacted production and order execution.”

The official added that logistics problems were also worsening the situation.

“A price increase of 40–50 per cent is expected for ammonia, which is essential for condom production. There has been a significant rise in the price of silicone oil, leading to uncertainty in the market,” the official said.