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

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 - Get Report), 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 - Get Report), Walmart (WMT - Get Report), Target (TGT - Get Report), 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.

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