Karex, the world's largest condom maker which produces more than 5 billion condoms a year, will raise prices by about 20–30% as shipping times have doubled and input costs climb, its chief executive said. The Iran war has pushed up freight and petrochemical costs and driven medicine price rises overseas, squeezing margins and prompting some Australian consumers to trade down on alcohol and delay big‑ticket purchases. That shift has hit firms from medical‑device makers to furniture retailers, which have reported plunging demand and sharp share‑price falls.

Supply shocks for contraceptives and medicines

Karex Bhd, which makes more than 5 billion condoms a year and supplies major brands and public health programmes, told clients this month it would shift higher costs on to buyers with a price rise of about 20–30%, Goh Miah Kiat, Karex chief executive, said.

Goh said the company has seen global demand rise roughly 30% this year while shipping times have doubled for some routes, with shipments to Europe and the United States taking close to two months compared with about one month previously. He added Karex still has enough stock for the coming months but that a lot of condoms are now delayed on vessels.

Those logistics problems mirror what pharmacists and supply specialists describe for other health products. Pharmacies in the United Kingdom have been charging about 20–30% more for over‑the‑counter medicines, and common painkillers such as paracetamol have surged in price in some markets experiencing acute shortages.

Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, said pharmaceutical supply chains are tied to petrochemical feedstocks and to air and sea routes through the Gulf that have become fragile since the start of the war. Wouter Dewulf, professor of pharma logistics at the University of Antwerp, warned that a large share of critical drugs move by air and that disruption to air cargo and rising jet fuel costs mean higher transport costs and longer routes.

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Households trade down on drinks and durables

Retail signals in Australia show households are already adjusting. Orora, an ASX‑listed packaging company, has detected a shift toward cheaper spirits since the Iran war began. Steven Fanner, executive director at Spirits & Cocktails Australia, said consumers are "trading down" to lower‑cost or lower‑alcohol options, driven by rising living costs rather than by a deliberate push for lighter drinking.

At the same time, Australians are cutting non‑essential spending across the board. The Westpac–Melbourne Institute consumer sentiment index shows job anxiety has climbed to levels not seen since the pandemic, and many households facing higher mortgage and petrol bills are delaying purchases of furniture, bedding and home appliances.

Those changes are showing up in stock markets. Over the past two months investors have seen:

  • Nick Scali: down about 20%
  • Harvey Norman: down more than 25%
  • Adairs: down by more than 30%

Cafes and restaurants have also reported fewer takeaway coffee sales as customers tighten budgets.

Healthcare decisions put on hold

The war’s effect on consumer confidence is also hitting discretionary healthcare. Cochlear, the Australian hearing‑implant maker, lost more than 40% of its market value in a single trading session after downgrading its profit outlook. The company said global demand for implants weakened as prospective patients deferred treatment amid deteriorating consumer sentiment, particularly in the United States.

Analysts at Morningstar flagged long‑term headwinds, saying adults are deprioritising implants. That shift underlines how higher living costs and supply‑chain worries can lead families to defer non‑essential healthcare.

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Goh Miah Kiat said Karex plans to raise prices by about 20–30% and currently has enough supplies for the coming months.

This article was created with AI assistance.