Safe sex up to a third more expensive. Durex condom manufacturer: demand increased by 30%

The president of the Malaysian giant Karex, which is the world's largest condom manufacturer, announced drastic price increases. A company servicing, among others, brand Durex plans to increase prices by up to a third, and if the situation in the Middle East does not improve, these amounts may increase even more. Meanwhile, the president of the latex company revealed that demand for condoms increased by about 30%.

“The situation is definitely very unstable, prices are high.
We currently have no choice but to pass these costs on to our customers“said Goh Miah Kia, president of Karex, in an interview with Reuters. The conversation shows that safe sex could become even more expensive if the war with Iran continues to disrupt global supply chains. For now, Karex plans to increase prices by 20% to 30%.

Latex tycoon

The company listed on the Malaysian Stock Exchange in Kualu Lumpur has been operating since 1988 and specializes in the production of natural latex condoms and other latex medical products, e.g. gloves. Its portfolio includes its own brands, such as Karex, but it also produces for contractors such as Durex and Pasante. Investors liked the president's message and increased the company's shares by up to 10% at the session on Wednesday.

Karex supplies the market with 5 billion condoms per yearwhich corresponds to approximately 1/5 of the market, thus being the largest producer of this type of product in the world. In the years 2020–2022, the company reported a decline in global demand for condoms by approximately 40%, which prompted it to develop other latex products (e.g. medical gloves).

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Demand for condoms increased by 30 percent

In an interview with Reuters, the president of Karex boasted that the company is seeing demand for condoms increase by about 30% this year. Unfortunately, supply disruptions caused by the war in the Middle East are further exacerbating shortages. The blockade of the Strait of Hormuz and tensions in the oil-bearing region of the Persian Gulf resulted in an increase in the prices of oil and other energy and petrochemical raw materials.

Although condoms are mainly associated with latex, their production is a complex chemical process dependent on petroleum. The war increased the prices of semi-finished petroleum products. Missing, among others: silicone oil used in lubricants, ammonia necessary in the production process and aluminum foil for packaging. Additionally, rising energy and gas prices make maintaining production lines record-breakingly expensive.

Not only expensive raw materials

The problem is not only the raw materials themselves, but also logistics. Karex, is struggling with huge delays in sea transport. Shipments to Europe and the USA, which previously took a month to arrive, now take almost twice as long. Many containers with essential products are stuck on ships, which increases storage shortages for end users.

At simultaneous cuts in humanitarian aid for the poorest countries in the world (including from the USA)the availability of free contraceptives in UN programs or the British NHS may be drastically reduced, forcing consumers to purchase commercial products at much higher prices.

It is worth remembering that petroleum derivatives affect a wide range of products and goods, not only those from the contraceptive industry.
This is clearly seen in the example of companies from the Polish Stock Exchange. Mercator Medical recently reported significant increases in production costs – Polish manufacturer of medical gloves. According to the company's data, the increase in prices of crude oil-related raw materials amounted to approximately 25% in March alone.

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