Condom maker may raise prices because of Iran war

Safe sex products could soon become more expensive globally as supply chain disruptions linked to the ongoing Iran war begin to affect production, according to industry leaders.

Karex Berhad, the world's largest condom manufacturer, has warned it may increase prices by between 20% and 30% if current conditions persist. Chief executive Goh Miah Kiat said rising costs and logistical challenges are already putting pressure on the company's operations.

"The situation is definitely very fragile, prices are expensive. We have no choice but to transfer the costs right now to customers," he said in an interview with Reuters.

Based in Malaysia, Karex produces more than five billion condoms annually and exports to over 130 countries. Its portfolio includes brands such as ONE, Trustex, Carex and Pasante, alongside other medical and personal care products.

The supply chain disruptions stem largely from instability in the Strait of Hormuz, a critical global shipping route. The ongoing conflict has restricted access to key raw materials used in condom manufacturing, including petrochemical byproducts such as naphtha, silicon oil and ammonia.

In addition to rising production costs, shipping delays have further strained supply.

"We're seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required," Goh said.

Experts warn that the impact extends beyond oil and fuel prices. According to KPMG global head of oil and gas Angie Gildea, shortages in petrochemicals - essential for packaging and manufacturing - are also driving up costs.

Asia, which depends heavily on Middle Eastern oil and related materials, is particularly vulnerable. For instance, about 41% of the region's naphtha supply originates from the Middle East, making production highly sensitive to disruptions in the region.

The crisis is also affecting labour and logistics. Some countries, including Myanmar and Cambodia, have introduced fuel rationing, while rising transport costs in parts of Southeast Asia have disrupted worker commutes and slowed factory operations.

While Karex has indicated it currently holds enough stock to last several months, prolonged instability could lead to sustained price increases and tighter global supply.

Economists caution that the ripple effects of the conflict - from energy to manufacturing - could soon impact everyday consumer goods, with safe sex products now among the latest to be affected.