Major condom maker plans to raise prices as a result of the war in Iran and associated impacts on oil and trade

Supply chain bottlenecks associated with the war in Iran have slammed Karex, the world's biggest manufacturer of condoms, which says it plans to significantly raise prices if the disruptions continue.

"The situation is definitely very fragile, prices are expensive ... We ​have no choice but to transfer the costs right now to ⁠the customers," Goh Miah Kiat, Chief Executive Officer of Karex, told ​Reuters this week.

The outlet reported that Karex makes condoms for brands including Trojan and Durex as well as for global health programs led by the United Nations. The Malaysian company said it expects to raise prices by 20% to 30% should the war in Iran continue to roil global supplies and shipping.

The war began in late February when the United States and Israel launched airstrikes on Iran. In addition to thousands of fatalities, the conflict has seen American, Israeli, and Iranian strikes on oil and gas infrastructure, driving pollution and an energy crisis exacerbated by the war-related blockages of the Strait of Hormuz. The regional waterway is vital to the global trade of fossil fuels and countless consumer goods.

Goh told Reuters that, coupled with increased demand this year, shipping delays, heightened freight costs, and supply chain issues have contributed to the plan to raise prices. According to the BBC, "Karex relies on materials derived from oil, including ammonia — which is used to preserve latex — and silicone-based lubricants." As the war has unfolded, the costs of materials such as synthetic rubber, nitrile, lubricants, and even condom packaging have also risen. 

Impacts of the war on India's condom manufacturing were reported three weeks ago by India Today, which tied the shortages and a projected 50% rise in retail prices to "disrupted maritime trade routes and the choking of petrochemical supplies and lubricants essential for production."

Goh has asserted that Karex has enough supplies for the coming months, but global stockpiles of condoms have dropped significantly. Contributing factors include massive spending cuts in foreign aid, largely due to the defunding of the U.S. Agency for International Development.  

Amid global supply chain problems, some condom shipments may take close to two months, double the expected duration prior to the conflict.