The Pros and Cons of Near-shoring Beauty and Personal Care Manufacturing to Mexico

As global tariffs, especially under President Trump’s policies, introduce uncertainty into trade, many U.S. beauty brands are turning to Mexico for manufacturing due to its proximity and cost-effective shipping. While Mexican production technologies lag slightly behind China’s, they’re sufficient for many beauty products, and the country offers comparable access to raw materials and packaging. Major companies like Unilever are investing heavily in Mexico, with a $1.5 billion plan including a new facility in Nuevo Leon, signaling confidence in Mexico’s long-term manufacturing potential. However, concerns remain about Mexico’s evolving tariff status, slower timelines, and regional risks like cartels and infrastructure inconsistencies. Despite challenges, firms like BeFra and Jafra are betting on Mexico’s growth, aiming to rival China by strengthening their R&D and developing new contract manufacturing capabilities for international brands.

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