Investors may shy when it comes to backing sex-related companies, but there’s no question sex sells.
The total U.S. market for condoms was $398.3 million in 2005, up 2.8% from 2004 according to market research group Packaged Facts. Church & Dwight Co., Inc. (NYSE: CHD), makers of Trojan brand condoms, estimate they have as much as 74% of the U.S. condom market.
SSL International (LON: SSL), makers of Durex brand condoms, reported condom sales of $317.2 million for the fiscal year ending in March 2006. That’s 9.2% higher than its previous year’s sales. The company estimates its global market share in excess of 30 percent.
The Guardian reported in 2000 that Japan’s 126 million people buy 250 million condoms a year, a market worth $530 million a year. The paper reported Japan was the biggest condom market in the world.
The Wall Street Journal wrote in 2002 that the U.S. market size was $295 million and the global market was $4 billion. It did not attribute those numbers to a source.
A 2001 report from Family Health International and the United States Agency for International Development reported that Indians bought 65 million condoms in 1999. SSL International has three manufacturing plants there now.
Know of any sex-related startups or private equity deals? Drop me a line: alex.haislip [at] thomson [dot] com.