“A condom is a barrier device commonly used during sexual intercourse to reduce the probability of pregnancy and spreading sexually transmitted diseases. It is put on a man's erect penis and physically blocks ejaculated semen from entering the body of a sexual partner”. Condoms are therefore medical devices which are used to maintain a good health care. It is in the government’s best interest to subsidise or provide them entirely free so that consumption is not limited to those who can afford them. This is why they can be defined as merit goods, goods which would be under provided and consequentially under consumed if left in the hands of the private sector alone.
Condoms are usually made from latex, but some are made from other materials such as polyurethane or polyisoprene. There are two types of condom: male and female. However, in 2012, male condoms remain far more used than female ones. The latest official figures from the Office for National Statistics show that about 25 per cent of British women aged 16 to 49 say that the male condom is their current method of contraception. Only 2 per cent use the female condom, so it can be considered as a minor substitute product. Hence, we will be focusing on the male condom.
The condom market has been described as something that "boggles the mind"..
Within the condom market there are several major contributors; among them both for-profit businesses and philanthropic organizations, including numerous small manufacturers, and government-run manufacturing plants.
In the UK, condoms are mainly supplied through three different distribution channels: 1. retailers and wholesalers 2. vending machines 3. the NHS (National Health Service)
The retail sector is the most important channel for condom distribution in the UK. The main retailers are the major national supermarket chains (which account for around 40% of total retail sales of condoms), Boots, community and independent