The 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 leading global producers of condoms, announces a possible price hike of up to 30% in the coming months.
This decision is due to the persistent disruptions in international supply chains. In a context of increased tensions in the Middle East, production costs have significantly increased, particularly for essential raw materials such as synthetic rubber and nitrile.
In addition, there is also a spike in the 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 worsening the situation, with delivery times being extended to up to two months, compared to about one month before.
Despite this tense backdrop, 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.
However, this announced price increase could have consequences on access to these essential products, especially in low- and middle-income countries, where they play a central role in preventing sexually transmitted infections and unwanted pregnancies.
