Safe sex could become more expensive if the ongoing Iran war continues to disrupt global supply chains, the CEO of the world’s largest condom manufacturer has warned.
Karex CEO Goh Miah Kiat told Reuters on Tuesday that the company may be forced to raise prices by at least 20% to 30%, depending on how long the disruption lasts.
Global supply chains have been hit by the war since the end of February, with a chokehold on the Strait of Hormuz cutting off access to some materials used in condom production.
“The situation is definitely very fragile, prices are expensive,” Goh said. “We have no choice but to transfer the costs right now to the customers.”
Based in Malaysia, Karex produces condoms, personal lubricants, gloves, medical catheters and probe covers. The company manufactures male latex condom brands including ONE, Trustex, Carex and Pasante, and can produce over 5 billion condoms annually. Karex exports to more than 130 countries, according to its website.
Goh said that beyond higher manufacturing and packaging costs, shipping delays are also mounting.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” he noted.
CNN has reached out to Karex for clarity on when the price hikes might take effect. Goh told Reuters the company has enough supply to last a few months.
While surging oil and gas prices have drawn the most attention since the Iran war began, economists warn that rising costs could soon lead to reduced consumer spending and production slowdowns. The impact is particularly acute in Asia, which relies heavily on Middle Eastern oil for fuel.
But the war has also hurt production of feedstocks — petroleum byproducts used to make plastics and other materials. Among them are naphtha, used for packaging, and silicon oil and ammonia, key ingredients in condom production.
“You hear a lot about crude oil and the impacts to diesel and gasoline — but feedstocks and petrochemicals are in short supply, too,” Angie Gildea, KPMG global head of oil and gas, said in a separate interview.
She noted that 41% of Asia’s naphtha comes from the Middle East. If manufacturing countries like Malaysia cannot access raw materials, they must raise prices to compensate.
Raw materials are not the only problem. Some countries, including Myanmar and Cambodia, have begun rationing fuel. Some schools in Southeast Asia, including in Vietnam, have issued stay-at-home orders as commutes have become too expensive for students. Industry analysts fear the situation is also affecting factory workers’ ability to reach manufacturing facilities, potentially slowing production of key exports — including to the United States.