Malaysia-based Karex Bhd, the world’s largest condom producer, has announced plans to raise prices by between 20% and 30% as global supply chains come under pressure due to the ongoing Iran war 2026.
The company’s CEO, Goh Miah Kiat, confirmed that further increases may follow if disruptions persist, citing rising production and logistics costs.
According to the company, the conflict has significantly impacted the cost of essential raw materials used in condom production. These include synthetic rubber, nitrile, aluminium foil for packaging, and silicone oil used in lubrication.
Goh stated that the situation remains fragile, with escalating expenses leaving the company with little choice but to pass the burden onto customers.
He emphasized that maintaining supply continuity is becoming increasingly difficult under current conditions.
Surge in Global Demand Worsens Shortages
While costs rise, demand is also accelerating. Karex reports a 30% increase in global demand this year, driven partly by reduced stockpiles and funding cuts in global health programs.
The company supplies major brands such as Durex and Trojan, as well as institutions like Britain’s National Health Service and programs run by the United Nations.
However, shipments that previously took one month are now taking nearly two months to reach destinations in Europe and the United States, worsening shortages in key markets.
Supply Chain Bottlenecks Hit Developing Nations Hardest
Developing countries are among the most affected, with delayed shipments leaving critical shortages in public health systems. Goh noted that large quantities of condoms are currently stuck in transit, unable to reach areas where demand is most urgent.
The situation is further complicated by earlier funding cuts from agencies such as the United States Agency for International Development, which had already reduced global stockpiles before the current crisis.
Karex joins a growing list of manufacturers, including medical glove producers, grappling with supply chain instability as energy and petrochemical flows from the Middle East remain disrupted.
Despite having enough supplies for the next few months, Karex is now working to increase production capacity to meet rising demand.
However, prolonged conflict could deepen the crisis, leading to sustained price increases and continued shortages worldwide.
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