By 2026, the beauty giant has committed $80 million to an expansion project at two of its Mexican production sites, in San Luis Potosi and Mexico City. The L’Oréal group aims to strengthen its industrial presence in Mexico and support the development of its global supply chain, against a backdrop of unprecedented customs duties (15%) on European cosmetics exported to the US.
Since August 1, European cosmetics have been subject to a 15% tax on entry into the United States, along with other products. It is against this backdrop of a US trade war that the L’Oréal group has chosen to strengthen its position in neighboring Mexico.
The country is one of the beauty giant’s top ten markets, with an estimated value of 280 billion Mexican pesos in 2024.
This decision follows the announcement made in June by L’Oréal Group of its intention to acquire a majority stake in the British skincare brand Medik8, thereby consolidating its expansion in the high-end skincare market.
Production development
L’Oréal’s $80 million investment is in addition to the French group’s 2012 investment of $100 million in the San Luis Potosi site.
Located in the “Logistik II” Industrial Park in Villa de Reyes, this industrial site exports 70% of its production, mainly to the United States, while the Xochimilco plant meets domestic demand and part of the demand in Latin America.
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Read also > L’Oréal confirms its stake in Medik8
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