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What is the gross margin for condoms and who are the major global suppliers, manufacturers, and brands of condoms? What is the global market for condoms and what is the CAGR?
Hello! Thanks for asking Wonder about the global condom market. The most useful sources I found to respond to your query were Yahoo Finance, BusinessWire, and Beige Market Intelligence, as well as company financial statements.
In short, the global condom market is worth approximately $7 billion, growing at a CAGR of 8.2%. The major players in the market are Karex Berhad, Ansell, Church & Dwight, Reckitt Benckiser, Sir Richard, and the Female Health Company. Gross margin could be as high as 42.8%, but may be closer to the market leader Karex Berhad at 33.34%. Below, please find the results of my research.
GLOBAL MARKET SIZE
According to a recent market report, the global market for condoms is expected to reach $9.6 billion by 2021, growing at a CAGR of 8.2%. That would put the current market size at about $7 billion.
The report also notes that sales of female condoms growing at a higher rate (CAGR of 10.9%), while male condom sales were expected to grow at a CAGR of 9.1% during the same period.
For context, the US condom market is expected to grow at a CAGR of 3.5%, rising from $1.275 billion in 2014 to $1.563 billion in 2020. That would put the current market at about $1.36 billion.
MAJOR GLOBAL PLAYERS
According to several market reports, the top companies in the global condom market include Karex Berhad, Ansell, Church & Dwight, Reckitt Benckiser, Sir Richard, and the Female Health Company. The top two companies, globally, are Karex and Ansell.
• Karex Berhad is the world's largest producer of condoms, churning out about 5 billion condoms in 2015, or about 15% of the global market. It expects to produce 7 billion in 2017. The company's 2016 revenues are RM343.6 million (or $78.112 million US, as of April 2016 exchange rates). Revenues were anticipated to reach $91.4 million in 2016. This company is the only one that appears to produce only condoms, rather than other products as well.
• Ansell produces the No. 2 branded condoms, globally, with their sexual wellness division seeing sales of $220 million in 2016. This division includes lubricants, fragrances, and devices, in addition to condoms. The SKYN® condom brand experienced 12% growth with an EBIT margin of 14.1%.
Data on market share in the US shows that Trojan, manufactured by Church & Dwight, holds 69% of the market, while Durex, produced by Reckitt Benckiser, holds 15% of the US market.
GROSS MARGINS
Data on gross margins for the global condom market was hidden by paywalled market reports. So, I looked at the financial data for the major players in the market to triangulate the data for you. Karex Berhad is the only company among the top players that appears to product condoms, exclusively, while other companies market additional products as well. It is also the world's largest condom producer. Therefore, their financial data is most useful in determining the gross margin for the industry. According to their 2016 annual report, Karex Berhad's gross margin is 33.34%.
Gross margins for other companies were not segmented by product or division, so the data from these companies will be skewed, but I will share the data I found for additional context:
• Ansell's annual report does not call out gross margin but presents its EBIT margin for sexual wellness products as 14.1%.
• Church & Dwight's company gross margin is 45.5%, but it does not segment this data according to product.
• Reckitt Benckiser's overall gross margin is 60.9% with health and hygiene making up 75% of its overall revenue. The company claims their Durex condoms are "No.1 worldwide in condoms for both safe and more pleasurable sex."
• The Female Health Company, which changed its name to Veru Healthcare in October 2016, has a gross margin of 60%.
• Sir Richard is a private company, so financial data was not available.
Averaging all of these figures gives us a roughly estimated overall industry gross margin of 42.8%.
SUMMARY
To sum up, the global condom market is worth approximately $7 billion, growing at a CAGR of 8.2%, and is expected to reach $9.6 billion by 2021. Gross margin for the global market could be as high as 42.8%, with the top company, Karex Berhad, enjoying a 33.34% margin. The major players in the global condom market are Karex Berhad, Ansell, Church & Dwight, Reckitt Benckiser, Sir Richard, and the Female Health Company.
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