L’Oréal Expands Beauty Manufacturing in Egypt with EGP 240 Million Investment

Image Credit: Sykono (Getty Images Signature)

Over the past year, Egypt has taken several steps to strengthen its position as a regional manufacturing and export hub, with cosmetics increasingly becoming part of that industrial strategy. As we discussed in a previous edition of Inside the Beauty Business, plans for the Russian Industrial Zone within the Suez Canal Economic Zone are expected to support new manufacturing, investment and export activity, with cosmetics identified among the sectors targeted for development.

These initiatives are part of a broader effort to attract manufacturing investment by leveraging Egypt’s industrial infrastructure, domestic market, and geographic position between Africa, the Middle East, and Europe. For beauty companies in particular, expanding local manufacturing capacity can provide access not only to the Egyptian market, but also to a wider network of regional export markets.

L’Oréal’s latest investment provides a practical example of this trend. The beauty group is investing EGP 240 million (approximately €4 million) to expand its manufacturing facility in 10th of Ramadan City, increasing production capacity and improving operational efficiency.

The facility is L’Oréal’s only manufacturing plant in the Middle East and North Africa and produces hair care, skincare and hair colour products. Over the past five years, the site has manufactured approximately 442 million units, with around 85% of production exported to 20 countries across the MENA region. The additional investment is expected to support growing domestic demand while increasing L’Oréal’s ability to supply existing and new export markets from Egypt.

The expansion also reflects the increasing importance of localisation within beauty manufacturing. In addition to producing products locally, L’Oréal has increased the use of locally sourced inputs at the facility. The plant also operates using 100% renewable energy and, since January 2025, has recycled or reused water used in its industrial processes.

The investment's significance therefore extends beyond the additional EGP 240 million in manufacturing capacity. It illustrates how Egypt’s efforts to develop its industrial base are beginning to intersect with the expansion strategies of multinational beauty companies. For businesses assessing manufacturing and distribution opportunities in Africa and the Middle East, factors including local sourcing, export infrastructure, regulatory requirements, sustainability standards and access to regional markets will increasingly influence where production capacity is located.

L’Oréal’s expansion strengthens Egypt's existing cosmetics manufacturing base at a time when the country is seeking further industrial investment. For the wider beauty industry, it is another indication that Egypt is developing beyond a significant consumer market into an increasingly important production and export location for beauty products serving the region.