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Global supply chain disruptions drive higher production costs and rising demand

Karex Bhd, the world’s largest condom manufacturer, has announced plans to increase prices by between 20 percent and 30 percent, citing ongoing supply chain disruptions linked to the Iran conflict. 

The Malaysia based company said rising costs of key raw materials such as synthetic rubber, nitrile, lubricants and packaging materials have significantly affected production. These materials are closely tied to petrochemical supply chains, which have been disrupted due to tensions and logistical challenges in the Middle East. 

Chief Executive Officer Goh Miah Kiat explained that the company has little choice but to pass on the increased costs to consumers, as shipping delays and higher freight charges continue to strain operations. 

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Karex, which produces more than five billion condoms annually and supplies major global brands and public health organisations, is also experiencing a surge in demand. Reports indicate that global stockpiles have dropped while delivery times to regions such as Europe and the United States have nearly doubled due to logistical bottlenecks.

Industry analysts warn that the price increase could have broader implications for public health, particularly in developing countries where access to affordable contraceptives is essential. The development highlights how geopolitical conflicts can ripple across global supply chains, affecting even everyday consumer products.