The chief executive of the world’s largest condom manufacturer has issued a warning that prices could rise by up to 30% or more if the ongoing conflict in Iran persists. Karex, which produces over five billion condoms annually for brands like Durex and Trojan, as well as for organizations like the NHS and the United Nations aid programs, is facing increased demand due to supply chain disruptions and rising freight costs. This surge in demand is also attributed to concerns about escalating living expenses, potentially impacting birth rates.

The company has been forced to pass on the escalating costs to customers amidst a challenging economic environment. The rise in household expenses, including fuel and food prices, is being linked to geopolitical tensions, with critics referring to it as “Trumption.”

UK inflation figures have shown a steady increase since the conflict began, with March seeing a jump from 3% to 3.3%. Goh Miah Kiat, the CEO of Karex, expressed concerns about the fragile situation and the necessity to transfer rising costs to consumers.

Karex is just one of many companies facing supply chain disruptions as a result of the conflict in Iran, impacting the procurement of essential materials. The company has witnessed cost increases across various components used in condom production, such as synthetic rubber, nitrile, packaging materials, and lubricants.

Despite having sufficient supplies for the coming months, Karex is ramping up production to meet the heightened demand, which has surged by approximately 30% this year. Shipping delays are compounding the issue, with shipments to key markets taking almost twice as long to reach their destinations.

Goh highlighted the critical need for condoms during uncertain times, emphasizing that in times of economic instability, the decision to have a child becomes a more significant financial consideration. Developing countries, in particular, are facing shortages due to delays in product delivery.

The company is actively working to address these challenges and ensure that essential products reach consumers in a timely manner.