Eurofragrance invests in Mexico production to feed LATAM growth

By Simon Pitman

- Last updated on GMT

Eurofragrance invests in Mexico production to feed LATAM growth
International fragrance provider Eurofragrance has started the second phase of investment in its Mexican production facility, with a view to expanding its business throughout the Latin American region.

The Spain-based fragrance creation business says that it has completed the first phase of the expansion to its facility there has now been completed and that work is now commencing on the second phase.

The company says that the aim of the expansion to the facility is to optimize lead times, increase storage space and reduce consumption.

The Mexican plant is still growing

“The development of this project is a clear investment in expanding the business in Latin America. After the investment made in 2015, this renovation confirms that our Mexican plant is still growing,” ​said Andrés Pagés, Eurofragance’s general manager for Mexico, Central America and the Caribbean.

The company said that the first phase included installing a new 85 m2 ​warehouse on the top floor that means an extra 45 Tn of storage space, the renovation of the washing area and other general improvements to the plant.

Additionally, this investment includes a 22-ton tank of dipropylene glycol that reduces electricity costs and optimises times and movements in the factory.

The second phase of the expansion will enlarge the Quality Control area, significantly improve washing equipment and install a cold room to store part of the stock.

Targeting further growth throughout the region

Currently the biggest market for the company in the region is Mexico, but it is also focused on growing its market share throughout Central America and Colombia.

This is because fragrance is a very important element and a part of the culture in many parts of Latin America highlighted by the highest levels of dosage in the world, leading Eurofragrance executives to believe they can tap further into this huge consumer demand.

Indeed, the company believes that its business still has room to expand geographically in the region, particularly as it has yet to get a footing in Latin America’s largest consumer market.

“We want to have a presence in Brazil because this is the biggest market in LATAM, but in order to be competitive we need to have local production,” ​Pagés told Cosmetics Design.

Related topics Formulation & Science Fragrance

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