Iran Conflict’s Ripple Effect: Price Hike from World’s Largest Condom Maker Raises Global Market Concerns

A rise in the cost of safe sex products may be on the horizon. Ongoing tensions involving Iran have disrupted key global shipping routes, and the impact is now reaching unexpected industries - including condom manufacturing.

The chief executive of Karex, the world’s largest condom producer, has warned that prices could increase significantly if current disruptions continue.

Prices Could Climb Sharply

According to Karex executive Goh Miah Kiat, costs could rise by as much as 20% to 30%, depending on how long delays in shipping persist.

“The situation is definitely very fragile, prices are expensive,” Goh told Reuters. “We have no choice but to transfer the costs right now to the customers.”

Since late February, conflict-related disruptions have affected a major shipping corridor, making it difficult to transport essential materials used in condom production.

Delays have also led to finished products being stuck in transit, unable to reach markets where demand remains high.

“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said.

Supply Chain Strain on Key Materials

Karex, based in Malaysia, manufactures a wide range of products including condoms, personal lubricants, medical gloves, catheters, and probe covers. Its facilities can produce over 5 billion condoms annually, supplying more than 130 countries worldwide.

However, production depends heavily on materials linked to the petrochemical industry. Disruptions in oil and gas supply chains are now affecting key inputs such as:

Naphtha – used in packaging and manufacturing processes
Silicone oil – essential for lubrication
Ammonia – used in processing latex

With shipping routes constrained, these materials have become harder to source and transport.

Energy Costs Ripple Through the Economy

Rising oil and gas prices have compounded the problem. Across Asia, where many countries rely heavily on Middle Eastern energy supplies, fuel costs have surged since the conflict began.

This has triggered wider economic effects:

Long fuel queues in countries such as Myanmar and Cambodia
Higher transportation costs affecting daily life
Reduced school attendance in parts of Vietnam due to rising travel expenses

Factories may also begin to feel the strain as workers struggle to afford transport, potentially slowing production and delaying exports.

Stock Levels and Outlook

Despite the challenges, Karex says it currently has enough inventory to meet demand for several months. However, continued disruption could tighten supply and push prices higher globally.

Industry observers note that if shipping bottlenecks persist, even products far removed from traditional energy markets may face rising costs.

Conclusion

The situation highlights how interconnected global supply chains have become. A conflict affecting oil routes can ripple outward - impacting everything from fuel prices to everyday health products.