Omnilife Invests US$64 Million in First US Manufacturing Plant
Grupo Omnilife invested US$64 million in its first manufacturing plant in the United States. The move affects the direct-selling and dietary supplement industry and signals a broader shift among Mexico-based multinationals toward dual-market manufacturing strategies. It also reflects growing demand from the US Hispanic population, a segment projected to be the fastest-growing demographic in the country over the next decade
Grupo Omnilife, the Guadalajara-based direct-selling company known for its nutritional supplements, has inaugurated its first manufacturing plant in the United States. Amaury Vergara, President and General Director, Omnilife, opened the Omnilife Innovation Park in Allen, Texas, which is backed by a US$64 million investment. The facility is expected to produce 1.2 million units annually in its first phase before scaling to 5 million units within three years.
The plant marks the company’s third manufacturing site worldwide, joining existing facilities in Guadalajara and Cali, Colombia. “Texas is strategically key: being a border state that is also centrally located within the United States allows us efficient logistics toward both coasts. In addition, it is home to the region with the largest presence of our independent entrepreneurs,” says Vergara, who leads a multinational with operations in 21 countries. Vergara adds that the site was secured when land values in Allen were still low, ahead of the city’s recent growth surge.
Vergara says the new plant will relieve pressure on the Guadalajara facility, which now operates at 98% of capacity. He expects the Texas site to free up to 18 percentage points of capacity in Guadalajara over the next five years, bringing utilization there down to 80%.
The decision to manufacture in the US follows growing exposure to trade policy risk for Mexican exporters. Mexico’s Ministry of Economy has formally requested a freeze on new US tariffs for the duration of the ongoing joint review of the USMCA, while also pushing Washington to reduce existing duties on automotive and steel products, Minister Marcelo Ebrard said in mid-August. The review, which began July 1, has also raised the possibility of new duties tied to a pending Section 301 investigation into structural manufacturing overcapacity, a probe that could add fresh tariff exposure for sectors including medical devices as early as August.
“Manufacturing in the United States shields us from risks tied to potential increases in import taxes or tariffs on Mexican products, making us highly competitive in the Anglo-Saxon market,” Vergara says. He notes that a possible tariff of up to 25% on supplement imports into the US is not an immediate concern for the company but reinforces the rationale for local production.
Local manufacturing also carries a new dimension. “Manufacturing in the United States opens the door for us to establish partnerships with universities and leading supplement and vitamin research centers worldwide, which require that products be locally manufactured to provide scientific backing,” Vergara says.
The Omnilife Innovation Park sits on a lot of nearly 570,000ft2, with a built area of close to 144,000ft2 across two buildings. Building A will house production, while Building B will initially serve storage and logistics functions, with the design allowing for future expansion of production lines. Vergara said the company aims to reach between 1 million and 2 million units next year, scaling to 5 million units annually within three years.
The US expansion also targets demographic opportunity. “Our main niche is the Hispanic population, the demographic segment with the greatest projected growth in the United States over the next 10 years,” Vergara says. Mexico generates 50% of Omnilife’s revenue, with the remaining 50% coming from the other 21 countries where the company operates.
