Givaudan set to build USD 110M fragrance factory in Mexico
This move significantly strengthens the company’s industrial presence in Latin America.
MEXICO – Givaudan has announced a major USD 110 million investment to construct a new fragrances compounding facility in Pedro Escobedo, Mexico.
This move aligning with its 2030 strategy focused on sustained growth, operational efficiency, and sustainable value generation across key regions.
The initiative reinforces Givaudan’s “in the region, for the region” supply approach, designed to boost responsiveness, cut delivery times, and lower transportation costs and emissions by localizing production nearer to clients in Mexico and broader Latin America.
According to the company, the facility will boast a capacity of 20,000 to 25,000 tonnes, scaling with rising demand, and is slated to commence operations in 2029.
Maurizio Volpi, President of Givaudan Fragrance & Beauty, stated, “Latin America continues to show strong market momentum.”
“This new investment is a strong statement of our commitment to customers in the whole Latin America region with very important markets like Mexico, Central America, the Caribbean area and the Andean region and will enable us to meet this increasing demand by offering faster, more flexible service to customers, thereby supporting our local and regional (L&R) ambitions.”
This builds directly on Givaudan’s prior 2024 expansion of encapsulation technology production at the same Pedro Escobedo site, cementing its role as a cornerstone in the company’s worldwide network.
Givaudan FY25 financial performance
Givaudan recently announced strong financial results for 2025, with overall group sales reaching CHF 7,472 million (USD 9.47 billion), reflecting a 5.1% increase on a like-for-like (LFL) basis.
This strong performance was propelled by exceptional growth across its business lines, particularly a standout 18.3% LFL surge in Fine Fragrance within the Fragrance & Beauty division, which achieved total sales of CHF 3,830 million (USD 4.84 billion), up 7.9% LFL and 4.6% in Swiss francs.
Fine Fragrance’s impressive expansion outpaced other units, complementing a 6.8% LFL rise in Consumer Products sales, against 2024’s strong 13.5% growth, and a slight -1.4% LFL dip in Fragrance Ingredients and Active Beauty, where double-digit Active Beauty gains were tempered by softer ingredient demand.
The division’s EBITDA stood at CHF 985 million (USD 1.24 billion), flat in Swiss francs but up 4.2% in local currency, with a comparable margin of 26.5% versus 27.8% in 2024, underscoring resilience amid currency headwinds and cost pressures.
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