The world’s largest condom manufacturer has warned that prices could soon rise sharply as supply chain disruptions linked to the Iran conflict continue to escalate.
Goh Miah Kiat, CEO of Karex, said in an interview with Reuters that the company may increase prices by 20% to 30% if current conditions persist.
The disruptions, which began in late February, are tied to instability around the Strait of Hormuz, a critical corridor for transporting raw materials used in manufacturing.
“The situation is very fragile, and costs have surged,” Goh said, adding that the company has little choice but to pass higher costs on to customers.
Karex, based in Malaysia, produces more than 5 billion condoms annually and exports to over 130 countries. Its portfolio includes brands such as ONE, Trustex, Carex and Pasante.
In addition to rising material and packaging costs, the company is facing mounting shipping delays. According to Goh, a growing number of shipments remain stuck in transit despite strong global demand.
While Karex currently has enough inventory to last several months, uncertainty remains over how long the supply disruptions will continue.
Analysts say the impact of the conflict extends beyond oil prices. Shortages of petrochemical feedstocks key components derived from petroleum are also affecting production. Materials such as naphtha, silicon oil and ammonia are essential for manufacturing condoms and their packaging.
Industry experts note that Asia is particularly exposed due to its reliance on Middle Eastern supplies. Disruptions in fuel availability have already led to rationing in countries like Myanmar and Cambodia, while rising transport costs are affecting workers’ ability to reach factories.
The combined pressures could slow manufacturing output and delay exports of essential goods, potentially driving up consumer prices worldwide.
