Unilever bets on Mexico’s personal care market with US$1.5B investment

Unilever has announced it will invest US$1.5 billion from 2025 to 2028 in Mexico to expand its beauty and personal care operations. The centerpiece is a US$408.5 million manufacturing facility in Salinas Victoria, Nuevo León, dedicated to brands such as Dove, Rexona, and Sedal.

The investment, announced during Mexico President Claudia Sheinbaum’s recent press conference, falls under the government’s “Plan México” initiative, which aims to attract both foreign and domestic capital.

“Mexico has great advantages due to its stability, talent, and strong market,” Mildred Villegas, general director of Unilever Mexico, says. The company will divide the rest of its billion-dollar investment among three existing facilities across the State of Mexico and Morelos.

“This reflects our confidence in the country’s growth, innovation, and talent,” adds Willem Uijen, chief supply chain and operations officer at Unilever Global.

“We are committed to Mexico for the long term — boosting operations, creating jobs, and scaling innovation.” He notes that the facility will drive digitalization, expand logistics, and strengthen the company’s brands.

The new factory is expected to act as a strategic export hub for the North American market, leveraging Mexico’s location and participation in the US–Mexico–Canada Agreement. 

According to Mexico’s Ministry of Economy, the project will generate 1,200 new jobs, adding to Unilever’s existing workforce of over 7,000 in the country.

According to Mexico’s Ministry of Economy, the project will generate 1,200 new jobs.Strategic placement for growth

Unilever’s expansion comes amid a government-backed effort to position Mexico as a sustainable, value-added manufacturing hub. “Today we are prioritizing the well-being of the people,” said President Sheinbaum at the press conference.

“It is not just about boosting GDP or exports — we want to improve the quality of life for families in Mexico.”

President Sheinbaum highlighted that the country’s investment portfolio now exceeds US$200 billion and that incoming companies are strategically locating themselves near key resources. She also cited labor improvements, social programs, and poverty reduction as part of the country’s appeal.

“Many companies are choosing to produce in Mexico not only for the US market, but because of what Mexico now represents,” Sheinbaum added.

For Unilever, the focus on beauty and personal care is not coincidental. The company’s Beauty and Wellbeing division saw 6.5% growth in 2024 and is a priority under the company’s Growth Action Plan.

The new Mexican factory aligns with that vision by supporting premiumization, operational efficiency, and environmental goals. The plant expects to run on 30% renewable energy by 2026 and will aim for Lighthouse certification, which, if earned, would place it among the most technologically advanced manufacturing sites globally.

“This is one of the most significant investments we have made in Mexico,” said Uijen. “It aligns with Plan México’s goals to promote well-being, support sustainable and inclusive growth, and help build a more prosperous future for all Mexicans.”

Regional alignmentPresident Sheinbaum cited labor improvements, social programs, and poverty reduction as part of the country’s appeal.

The expansion will mitigate global supply chain risks by nearshoring production to North America. Amid ongoing US–Mexico trade discussions, Mexico remains a strategic location for international brands that want to avoid sacrificing market access.

Unilever’s move mirrors similar actions from companies such as Walmart and Amazon, which recently pledged multi-billion-dollar investments in the country.

Despite risks like price fluctuations and geopolitical trade tensions, Unilever’s investment enables the company to grow its operations and remain in close proximity to key markets. This move strengthens its position in Latin America, a fast-growing market for personal care.

“The personal care industry should pay special attention to Latin America. While there has been investment, the region’s unique cultural and economic dynamics suggest that tailored strategies and localized products can generate consistent and above-average market growth,” Mauro Patrus, regional head of Consumer Products LATAM at Givaudan, previously told Personal Care Insights.

“I expect the personal care industry in Latin America to experience significant growth above the market average (CAGR 5.8% from 2024-2030) in the coming years,” Patrus said.