Geopolitical tensions related to the conflict in Iran are beginning to have unexpected effects on the global economy. Malaysian group Karex Bhd, one of the world’s leading condom producers, announces a possible price increase of up to 30% in the coming months.
This decision is due to ongoing disruptions in international supply chains. In a context of increased tensions in the Middle East, production costs have risen significantly, especially for essential raw materials such as synthetic rubber and nitrile.
In addition, there is a surge in prices of packaging materials, including aluminum, as well as lubricants used in manufacturing. The company’s CEO, Goh Miah Kiat, describes the situation as “fragile,” explaining that the company has no choice but to pass on these costs to consumers.
Logistical difficulties are also exacerbating the situation, with delivery delays now lasting up to two months, compared to about one month previously.
Despite this tense situation, global demand remains strong, especially in Europe and the United States. Karex Bhd produces around 5 billion units per year and supplies both international brands and public health programs.
This announced price increase could, however, have consequences on access to these essential products, particularly in low and middle-income countries, where they play a central role in the prevention of sexually transmitted infections and unwanted pregnancies.
