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Malaysia’s Karex Bhd, renowned as the largest condom manufacturer globally, is gearing up to implement a significant price hike of 20% to 30%. The company may consider further increases if the ongoing supply chain disruptions, exacerbated by the conflict in Iran, persist, according to its CEO.

In an exclusive interview with Reuters, CEO Goh Miah Kiat noted a notable uptick in demand for condoms. The surge is largely attributed to escalating freight costs and shipping delays, which have left many customers with insufficient stock levels.

“The situation is undoubtedly precarious, and prices are steep,” Goh remarked. “Unfortunately, we’re compelled to pass these costs onto our customers at this point.”

Karex, which produces more than 5 billion condoms annually, supplies to major brands like Durex and Trojan. It also serves public health systems such as the NHS and international aid initiatives spearheaded by the United Nations.

Since the conflict’s onset in late February, Karex has faced rising expenses across a range of materials, including synthetic rubber and nitrile for condom production, as well as packaging components and lubricants like aluminum foil and silicone oil, Goh explained.

He said Karex has enough supplies for the next few months and is looking to boost output to meet growing demand, as global stockpiles of condoms have dropped significantly following deep spending cuts in foreign aid, particularly by the US Agency for International Development last year.

Demand for condoms has risen about 30% this year, with shipping disruptions further exacerbating shortages, he said.

Karex’s shipments to destinations such as Europe and the United States are now taking close to two months to arrive, compared to a month previously.

‘We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,’ Goh said, adding that a lot of developing countries do not have enough stock because it takes time for the products to reach them.