Safe sex could become significantly more expensive if the conflict involving Iran continues to disrupt global supply chains.
According to the chief executive officer of the world’s largest condom manufacturer, the industry is facing mounting pressure from rising costs and logistical hurdles.
Karex chief executive officer Goh Miah Kiat stated that the company may be forced to increase prices by at least 20 to 30 percent, depending on the duration of the current disruptions.
Global supply chains have been under strain since late February, particularly due to the situation surrounding the Strait of Hormuz, which has restricted access to materials essential for production.
Goh noted that the current market situation remains fragile. He explained that with expenses rising, the company has little choice but to transfer these costs to consumers.
Manufacturing challenges and shipping delays
Based in Malaysia, Karex is a major global player producing condoms, personal lubricants, gloves, and medical equipment.
The company manufactures several well known brands, including ONE, Trustex, Carex, and Pasante, with an annual production capacity exceeding five billion condoms.
In addition to higher manufacturing and packaging costs, the company is grappling with significant shipping delays.
Goh observed that a large volume of products is currently stuck on vessels that have yet to reach their destinations, despite high demand for these essential items.
While the company currently maintains enough supply to last for a few months, the long term outlook remains uncertain.
The surge in energy prices has dominated headlines, but the impact on petroleum byproducts, known as feedstocks, is equally critical for the manufacturing sector.
Shortage of essential raw materials
The conflict has severely affected the production of materials such as naphtha, which is used for packaging, as well as silicon oil and ammonia, which are vital components in condom manufacturing.
Industry experts noted that while crude oil often receives the most attention, petrochemicals are also in short supply.
Data shows that a significant portion of Asia’s naphtha originates from the Middle East.
When manufacturing hubs like Malaysia cannot access these raw materials easily, price adjustments become inevitable to compensate for the increased procurement costs.
Beyond material shortages, broader economic issues are impacting the region. Some neighbouring countries have begun rationing fuel, while high commuting costs have even affected the ability of factory workers to reach manufacturing facilities.
These combined factors threaten to slow down the production of key products destined for international markets.
