A little-known condom production line
Karex Bhd, the world's largest condom manufacturer, produces about 4 billion condoms every year and employs about 2000 workers. There are production bases in Pontian, Johor, Port Klang, Malaysia and Hat Yai, Thailand to make full use of local rubber resources.
The company constantly innovates to change the original design, shape, size, material, color, taste, etc., and develops new flavors including chocolate, marijuana and durian.
One third of the company's products are for the U.S. market and other international organizations, and it plans to have a capacity of 6 billion per year by the end of this year. The company claims that at least one out of every ten condoms in the world is made in Malaysia.
As global demand for condoms continues to grow, karex Berhad should benefit. Global condom sales have increased by 7% in the past few years, and the number of condoms sold by manufacturers reached 22.8 billion in 2012. The industry is expected to achieve steady growth.
With the continuous development of emerging markets, people's education level and income increase, so the use of condoms increases.
China is one of the huge markets, with the annual condom sales reaching 9.6 billion.
The size of this market is growing by 9.8% annually, and Kangle is a large condom manufacturer in the market.
The global condom market is expected to reach about $5.4 billion by 2018. In terms of sales and sales, the Asia Pacific region is expected to be the fastest growing market. The CAGR of Asian market between 2007 and 2015 is estimated to be 7%.
Most condom manufacturers are mainly developing in the domestic market without actively trying to expand their business to all over the world.
It could be good for a company that wants to show off globally. In addition, some large condom companies, such as Ansell and Durex in Australia, tend to outsource production to companies such as recreational companies.
Therefore, even if other brands try to increase sales, Kangle company can benefit from its OEM business.