This Day On The Street
Continue to site
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

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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
WAG $81.65 2.05%
AMZN $432.65 0.24%
CHD $84.63 0.00%
TGT $79.39 0.00%
WMT $76.11 0.00%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs