Rubber checks bounce in a Chinese boom
An escalation of HIV, syphilis, genital herpes and other sex-spread infections is spurring demand for knowledge and condoms in China, where intrauterine devices and sterilisation are the mainstays of birth control.
About 9.2 billion condoms were sold in China last year, according to a report by Global Industry Analysts.
Sales are predicted to reach 14.6 billion by 2018 amid "unprecedented growth", due to a similar growth in reproductive healthcare products.
Mickie Leong heads a China unit for Ansell that sells the Jissbon condom (which sounds in Chinese like "James Bond") and says it will be a "huge and growing market" for a long time.
Guo Si, who moved to Beijing from neighbouring Hebei province in 2012, said she had never before had sex education at school, which is not uncommon in China. Now, colleges such as Guo's Tsinghua University are holding classes and dispensing free rubbers in vending machines.
The market is forecast to increase 9 per cent annually to reach $US1 billion ($1.09 billion) by 2018, benefiting suppliers such as Ansell and Reckitt Benckiser Group, the maker of Durex condoms. Reckitt Benckiser said in April that revenue in Latin America and Asia-Pacific jumped 11 per cent in the first quarter, helped by Durex sales in China. Better distribution there had driven the condom brand's growth, the company said in its latest annual report.
Still, condom use in China is growing from a low base. Wuhan Jissbon Sanitary Products, which Melbourne-based Ansell bought in 2006, has annual revenue of $US12 million and is the second-largest condom manufacturer in China, with 10 per cent market share, Credit Suisse says in a June 21 report.
Thirty years ago, intrauterine devices or IUDs accounted for half of birth control methods used in China, with tubal ligation making up a quarter. Condom use was only 2 per cent, researchers reported in 1983. Condoms' share of the contraception market now exceeds 4 per cent, according to the University of Southern California.
Less than 40 per cent of people in China aged 15 to 24 received sex education at school, according to a 2009 survey of 22,288 youths by the Peking University's Institute of Population Research.
At its campus hospital in north Beijing, Tsinghua University has installed a vending machine that dispenses free condoms while doling out sexual advice on a television screen.
A cartoon plays in a continuous loop featuring an egg-shaped "Ms Contraception" discussing how androgen-blocking contraceptive pills for women can also counter pimples.
Authorities in Hefei, the provincial capital of Anhui, are dispensing free condoms in nine machines scattered across the city.
Frequently Asked Questions about this Article…
The article says rising rates of HIV, syphilis, genital herpes and other sexually transmitted infections are increasing demand for condoms. Greater sexual education at colleges (for example free-condom vending machines and campus programs) and improved distribution are also driving growth in the China condom market.
According to the article, about 9.2 billion condoms were sold in China last year. Market research cited predicts sales could reach 14.6 billion by 2018, and the market value is forecast to increase about 9% annually to reach roughly US$1 billion (around $1.09 billion) by 2018.
The article identifies Ansell (owner of the Jissbon brand) and Reckitt Benckiser Group (maker of Durex) as suppliers that should benefit from rising condom demand in China. Credit Suisse and market research firms are cited in support of those views.
Ansell bought Wuhan Jissbon Sanitary Products in 2006. The article notes Wuhan Jissbon has annual revenue of about US$12 million and is reported by Credit Suisse to be the second-largest condom manufacturer in China with roughly a 10% market share. Ansell sells the Jissbon brand in China and runs a China unit headed by Mickie Leong.
The article reports Reckitt Benckiser said revenue in Latin America and Asia‑Pacific jumped 11% in the first quarter, helped by Durex sales in China. The company attributed Durex’s growth to better distribution in the region.
The article highlights that sex education has been limited historically (a 2009 Peking University survey said less than 40% of 15–24 year olds received sex education). New initiatives—such as Tsinghua University offering classes and free-condom vending machines with sexual-health information—are increasing awareness and are expected to boost condom demand.
Thirty years ago IUDs and sterilisation dominated birth control in China and condom use was reported at only 2% in 1983. The article notes condoms’ share of the contraception market now exceeds 4% (per the University of Southern California), indicating growth from a low base.
Key facts from the article: large unit sales (about 9.2 billion condoms sold last year), strong growth forecasts (potentially 14.6 billion units and ~US$1 billion market value by 2018), major suppliers positioned to benefit (Ansell/Jissbon and Reckitt Benckiser/Durex), and demand drivers including rising STIs, expanding sexual education on campuses, and improved distribution in China.

