Kenneth Glad
A key component of global health supply chains is coming under pressure as demand increases and shipments fall behind schedule. Industry signals suggest that rising costs could soon affect both consumers and aid programmes.
The world’s largest condom manufacturer warns that ongoing disruptions linked to geopolitical tensions are beginning to ripple through production and distribution.
Demand has accelerated sharply, with Karex estimating growth of around 30% this year, according to Reuters. The Malaysian company is a major supplier to both commercial brands and international public health programs, making its output critical to global access.
Part of the increase stems from declining stockpiles. Reuters reports that funding reductions in foreign aid, particularly those associated with the US Agency for International Development, have led to scaled-back procurement, leaving many regions with limited reserves.
This has forced buyers to place orders more frequently, even as supply chains struggle to keep pace with rising needs.
Costs intensify
In an interview, chief executive Goh Miah Kiat said Karex plans to raise prices by 20% to 30% as production costs climb.
“The situation is definitely very fragile, prices are expensive … We have no choice but to transfer the costs right now to the customers,” he said.
As reported by The Guardian, the Iran conflict has disrupted petrochemical flows, increasing the cost of essential materials such as synthetic rubber and nitrile.
Goh also highlighted rising expenses for packaging and lubricants, including aluminium foil and silicone oil, illustrating how cost pressures are affecting nearly every stage of production.
Delays reshape access
Shipping disruptions are compounding the problem. Deliveries that previously took about a month are now approaching two months for some destinations, leaving large volumes of stock in transit.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said.
Such delays disproportionately affect developing countries, where supply systems rely on steady deliveries and buffer stocks are limited.
Prolonged disruption could weaken access to contraception and hinder efforts to prevent the spread of sexually transmitted infections.
Karex produces more than 5 billion condoms annually for brands such as Durex and Trojan, as well as for organisations including the UK’s NHS and United Nations programs.
If supply pressures persist, both availability and affordability may come under further strain.
Sources: Reuters, The Guardian
