Weleda Considers US Production Amid Tariff Threats and Strong Growth

US Production Explored: Weleda is evaluating setting up production in the US, considering options from simple bottling to full manufacturing, driven by potential tariffs and its internationalization strategy.

Record Financials: The company achieved record global sales of €456.2 million in 2024 (an 8.3% increase) and more than doubled its earnings before interest and taxes (EBIT) to €28.3 million.

Youth Focus & Digital Strategy: Under CEO Tina Müller, Weleda is targeting younger demographics (Gen Z, Gen Alpha) using platforms like TikTok Shop in Germany and influencer marketing. A new baby, child, and teen product line with Princess Madeleine of Sweden is launching soon.

Product Growth: Eye care products saw a significant 32% sales increase, potentially linked to increased screen time causing dry eyes.

Hiring Plans: Due to strong business performance, Weleda plans to increase staffing, including at its major German site in Schwäbisch Gmünd.

Why this matters: This development illustrates how geopolitical factors like trade tariffs can directly influence global manufacturing strategies. It also showcases Weleda's successful adaptation to evolving consumer behaviour (digital channels, younger audiences) and its robust growth trajectory after previous challenges.

Q: Why is Weleda thinking about producing in the US?

A: It's primarily a strategic response to potential US tariffs on goods imported from Europe and part of their ongoing international expansion plans.

Q: How did Weleda perform financially in 2024?

A: Exceptionally well. They reported record global sales of €456.2 million (+8.3%) and more than doubled their profit before tax and interest (EBIT) to €28.3 million.

Q: How is Weleda reaching younger customers?

A: They are actively using platforms like TikTok Shop, engaging influencers, and launching specific product lines targeting babies, children, and teenagers.

Global trade discussions and potential tariffs can significantly alter where international companies choose to manufacture products.

Brands must continually adapt their marketing to reach new generations, embracing digital platforms like TikTok where younger consumers spend time.

Strategic shifts, strong leadership, and a focus on international markets can revitalize even long-established companies.

How to Prepare: Businesses exposed to international trade should monitor tariff discussions and evaluate supply chain diversification. Consumers might see shifts in product availability or pricing depending on these corporate decisions.

Who This Affects Most: Companies exporting heavily to the US, US consumers of European goods, and potentially workers in both regions as manufacturing locations are evaluated.

Source 1: Weleda prüft offenbar Produktionsmöglichkeiten in den USA (Spiegel) target="_blank"