Let's be honest most of us don't spend much time thinking about global condom supply chains. But after the Iran conflict threw a wrench into oil shipping through the Strait of Hormuz, maybe we should start.
The world's biggest condom maker is feeling the heat
Karex, the Malaysian company that quietly manufactures more condoms than anyone else on the planet over five billion a year has warned it may need to raise prices by up to 30%. You've used their products even if you've never heard of them: they supply Durex, Trojan, and the UK's National Health Service, among others.
It all comes back to one narrow stretch of water
The problem traces back to the Strait of Hormuz, through which roughly a fifth of the world's oil and liquefied natural gas passes. Tensions between Iran, the US, and Israel have effectively choked it. Since condom manufacturing relies heavily on petroleum-derived materials ammonia and silicone-based lubricants the ripple effects landed squarely on the bedroom supply chain.
The ironic twist: demand is actually up
Economic anxiety as contraception
Demand for condoms has surged by around 30% this year. Karex's CEO, Goh Miah Kiat, believes economic anxiety is driving it. When the future feels shaky, people reconsider major life decisions and having children is one of the first things off the table.
"In hard times, you need protection more than ever because you don't know if you'll still have a job next year." Goh Miah Kiat, Bloomberg
Supply down, demand up a bad combination
Soaring demand colliding with higher production costs and shipping delays is a recipe for either a global shortage or a noticeably lighter wallet the next time you visit the pharmacy. Some analysts are already warning about both.
