World's biggest condom maker issues price rise warning over Iran war
Topics: Health, Sex and Relationships, US News
Greg Harris
Featured Image Credit: Getty Stock
Topics: Health, Sex and Relationships, US News
One side effect of the Iran war could soon lead to a hard rise in the price of condoms.
The boss of Karex, the world’s biggest condom maker, has warned that the firm may have to put up its prices by up to 30 percent or more if the Iran war continues.
Goh Miah Kiat, chief executive at Karex, informed the media that production costs have grown since the beginning of the conflict.
Karex, based in Malaysia, produces more than five billion condoms each year and supplies leading brands like Durex and Trojan, plus state health systems like the NHS in the UK.
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President Donald Trump recently issued a new ultimatum and threatened to ‘blow up the rest of the country, their leaders included’ as the US and Iran continue to negotiate an agreement. The status of the peace talks remain unclear although Trump recently said he will extend the Iran ceasefire as conversations between the two sides continue.
A major factor in the conflict has been the disruption of shipping through the Strait of Hormuz, alongside a U.S. naval blockade targeting Iranian ports. The instability has blocked one of the world’s most important oil transit routes, creating a knock-on effect through global supply chains far beyond the energy market.
Around a fifth of the world’s crude oil and liquified natural gas are usually transported through the strait.
Karex uses materials derived from oil, including ammonia used to preserve latex, and silicone-based lubricants.
Demand for condoms has risen by about 30 percent this year, Goh said, at the same time as supply chains have tightened and sourcing raw materials has become more difficult. Higher freight costs and delays to shipping have worsened the shortages.
"In bad times, the need to use condoms is even more because you're uncertain with your future, whether you'd still have a job next year," he told Bloomberg.
"If you have a baby right now, you'll have one more mouth to feed," he continued.
Rising condom prices are just the fallouts from the ongoing US-Israel conflict with Iran. It is impacting far more than just energy markets and the price of gas. and consumers are starting to notice.
Prices of airline tickets have surged in recent weeks, with the cheapest economy tickets now costing around 24 percent more than they did a year ago, according to new research by Teneo.
Higher crude oil prices tend to push up jet fuel costs and because fuel is such a big airline expense, that often leads to higher airfares or fees for passengers.
Travel experts have shared tips for customers planning to travel this summer on how to keep costs as low as possible.
Disruption to shipping through the Gulf has pushed up fertiliser prices and led to a shortage of helium, a key component in the production of computer chips.
And the bottled water industry is also under strain, as manufacturers struggle to source the raw materials they need.