Durex Supplier Karex to Hike Prices Up to 30% Amid Iran Conflict-Related Supply Chain Disruptions

Karex Bhd Faces Challenges in Meeting Global Condom Demand Amid Iran War

Karex Bhd, a Malaysian-based condom manufacturer and the world's leading condom producer, is expected to increase prices by 20% to 30% due to supply chain issues stemming from the Iran war. The company's Chief Executive Officer, Goh Miah Kiat, stated that further price hikes are possible if the supply chain disruptions persist.

Karex relies heavily on petrochemical-linked materials, such as ammonia, ethanol, and silicone oil, to produce its condoms. However, the Iran war has severely hampered the sourcing of these essential raw materials, leading to a significant spike in costs. Since the start of the war, the cost of silicone oil has risen by approximately 30%, while nitrile latex prices have doubled, and natural rubber prices have increased by a third since January.

As a result of the supply chain disruptions, Karex is experiencing a massive surge in demand, with global condom reserves having plummeted recently due to reductions in foreign aid funding. Condom demand has increased by roughly 30% this year, exacerbating the existing product shortages. The company is working to ramp up production to meet the increased requirements, but exports to major markets like Europe and the United States are facing severe delays, with transit times doubling from one month to nearly two months.

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Karex generates over 5 billion condoms annually, supplying major brands such as Durex and Trojan, as well as supporting national health networks like the UK's NHS and various United Nations-led humanitarian initiatives. The company owns UK-based Pasante Healthcare Ltd, which supplies condoms to the National Health Service and provides private-label products to retailers including Tesco Plc and Boots.

As the global demand for condoms continues to surge, Karex's shares traded in Kuala Lumpur surged 14% on Wednesday, the biggest intraday advance since October 2025, before paring gains. According to Goh Miah Kiat, the market for condoms is virtually inflation-proof, and higher prices are not expected to dent demand. The CEO noted that in times of economic uncertainty, the need for condoms increases, as individuals become more cautious about their future and the potential for additional expenses, such as raising a child.