Weleda, the Switzerland-based organic cosmetics company, is considering production in the United States to escape Trump’s tariffs on European products.
“We have been working on this for several weeks,” CEO Tina Muller told the German news agency Dpa. According to recent figures, the Arlesheim-based company achieved a turnover of EUR 456 million (USD 493 million) in 2024, up 8% year-on-year.
Productivity was even more dynamic: the operating profit Ebit more than doubled to EUR 28 million (USD 30 million). This year, the company plans to launch a line of baby, child and adolescent care products and cooperate with well-known influencers on the TikTok platform.
‘In the medium and long term, TikTok will become the most influential beauty channel,’ claimed Muller. Through the platform, the company established in 1921 wants to reach generation Z (born between 1995 and 2010) and the next generation Alpha (born between 2010 and 2025).
EI Comment: The tariff situation is creating a lot of uncertainty in the natural cosmetics industry. Many natural & organic brands, such as Weleda, Melvita and Jurlique are imported into the US. Whilst Weleda is considering American production, other brands cannot justify the higher costs of production considering they have a small presence. A bigger issue is raw materials: many natural ingredients, such as essential oils and extracts, are imported into the US. Higher prices of raw materials will have an impact on the natural & organic cosmetics market; some brands will re-formulate, whilst other will be passing on the higher costs to consumers. As uncertainty continues, industry confidence and consumer sentiment will suffer.
Related Report: Global Market for Natural & Organic Personal Care Products