This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sozzi: The Hard Truths Behind the Pleasure-Packed Condom Boom

Stocks in this article: CHD WMT TGT WAG AMZN

NEW YORK (TheStreet) -- Condom sales are booming. In Cuba, there is currently a shortage of the rubber in a wrapper due to prior government initiatives. Here are the quick facts regarding the condom market:

  • Global condom sales are expected to grow at a 9% CAGR from 2013-2018. Considering that condoms are not a new item, certainly there have to be factors at play driving the market other than governments focusing on population control and STD protection (there are).
  • Trojan and Durex, the industry heavyweights, have 69% and 15% respective market shares in the U.S. condom market
  • Trojan, owned by Church & Dwight (CHD), has 26 times the advertising budget of Durex
  • In 2013, Microsoft (MSFT) founder and philanthropist Bill Gates distributed $100,000 to 11 winners in a contest to develop a condom that preserved or improved sexual pleasure, thus encouraging more people to use them, preventing more unwanted pregnancies and the spread of sexually transmitted diseases.

What are the three main trends fueling the boom unfolding on the digital and physical aisles of Amazon (AMZN), Walmart (WMT), Target (TGT), and Walgreen (WAG)? Glad you asked!

  • A movement by companies to introduce new pleasure-oriented condoms for both men and women, including those branded as socially conscious products.
  • Yes, condoms are getting thinner and are being marketed as a new innovation -- manufacturer cost savings masked as offering a heightened sexual experience.
  • Innovative packaging from the actual box to condom wrappers are improving the product appeal.
In addition, April is apparently "Sexually Transmitted Infections Awareness Month," giving companies an added bit of marketing.

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Sozzi held no position in the stocks mentioned.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs