Mars Unleashes $2 Billion Investment to Bolster U.S. Manufacturing and Innovation By 2026

In a significant declaration of its enduring commitment to the American economy and its vast consumer base, Mars, Incorporated, the global powerhouse behind over 40 beloved snacking, food, and pet care brands, has announced a monumental investment of an estimated $2 billion into its U.S.-based manufacturing operations by the end of 2026. This strategic infusion of capital is set to amplify capacity, drive innovation, and solidify the company’s domestic production footprint, building impressively on the more than $6 billion already allocated to U.S. manufacturing over the past five years.

The announcement, made from its McLean, Virginia headquarters, underscores Mars’s deep roots and unwavering dedication to the United States, which stands as its largest and most vital market. With a staggering 94% of Mars products sold in the U.S. already produced locally, this additional investment is not merely about expansion; it’s about fortifying a resilient supply chain, fostering local economies, and meeting the evolving demands of American consumers.

“This investment is about building a stronger, more resilient business in the U.S. – one that can grow with our consumers, deliver for our partners, and create lasting economic impact in the communities where we operate,” stated Claus Aagaard, CFO of Mars, Incorporated. His remarks highlight a clear strategic vision: to ensure Mars remains agile and responsive in a dynamic market, capable of sustained growth and positive societal contribution. “The U.S. is our biggest and most important market, and a key engine of growth for the long term – not only through our legacy manufacturing footprint but also through the expansion of strategic acquisitions like Nature’s Bakery, which is already scaling quickly. That’s why we’ve committed $6 billion to U.S. manufacturing in the last five years, with another $2 billion planned by the end of next year.”

A Strategic Infusion: Bolstering Domestic Production and Capacity

The $2 billion commitment through 2026 is a testament to Mars’s confidence in the U.S. manufacturing sector and its long-term growth prospects. This substantial investment is earmarked for a range of initiatives designed to enhance existing facilities and establish new, state-of-the-art production sites. The focus is on increasing capacity across Mars’s diverse portfolio, which includes iconic brands like M&M’S®, SNICKERS®, Royal Canin®, Ben’s Original™, PEDIGREE®, and SHEBA®.

This latest investment cycle is a continuation of a robust strategy that has seen Mars inject over $6 billion into its U.S. manufacturing capabilities in the preceding five years. Such sustained capital expenditure reflects a clear strategic imperative: to localize production wherever possible, reduce reliance on complex global supply chains, and respond more swiftly to market trends and consumer preferences. This approach not only strengthens the company’s operational backbone but also creates significant economic ripple effects across the country.

Key Growth Drivers: Nature’s Bakery and Royal Canin Lead the Charge

A significant portion of this $2 billion investment is directly supporting two pivotal growth areas for Mars: the rapidly expanding “better-for-you” snacking segment, spearheaded by Nature’s Bakery, and the thriving premium pet nutrition market, dominated by Royal Canin. These two brands exemplify Mars’s strategic acquisitions and organic growth initiatives that are shaping its future portfolio.

Nature’s Bakery: A Sweet Expansion in the West

Tomorrow, Mars will officially inaugurate a new, cutting-edge Nature’s Bakery facility in Salt Lake City, Utah. This state-of-the-art site represents a significant $240 million investment and spans an impressive 339,000+ square feet. The facility is poised to be a major economic catalyst for the region, projected to create more than 230 new jobs. More importantly, it will dramatically expand Nature’s Bakery’s production capacity, enabling the brand to produce nearly one billion bars each year.

The acquisition of Nature’s Bakery by Mars in 2020 was a strategic move to bolster its presence in the burgeoning health and wellness snacking category. Founded in 2011 and headquartered in Reno, Nevada, Nature’s Bakery has rapidly ascended to become the eighth best-selling and fastest-growing granola and snack bar brand within a highly competitive $4 billion-plus market. Its appeal lies in its commitment to simple, wholesome ingredients, offering plant-based, dairy-free, nut-free, and Non-GMO Project Verified snacks. This aligns perfectly with the increasing consumer demand for healthier, more transparent food options, a trend Mars is keen to capitalize on. The Salt Lake City facility is a direct response to this escalating demand, ensuring that Nature’s Bakery can continue its impressive growth trajectory and reach even more consumers seeking convenient, nutritious on-the-go options.

Royal Canin: Nourishing Pet Health on a Grand Scale

Earlier this year, Mars celebrated another major milestone with the opening of a new $450 million Royal Canin® dry pet food facility in Lewisburg, Ohio. This expansive 450,000-square-foot complex is not just a significant investment; it is now the brand’s largest dry pet food factory globally. The Lewisburg facility is expected to create up to 270 new jobs in the area and is designed to produce enough specialized pet food to feed an estimated 4 million pets annually.

Royal Canin, which joined the Mars family of businesses in 2002, is a cornerstone of Mars’s robust Petcare segment. Founded in France in 1968 by veterinarian Jean Cathary, Royal Canin pioneered the concept of health-through-nutrition for pets, developing precise dietary solutions tailored to the specific needs of different breeds, ages, and health conditions. The global pet care market has witnessed exponential growth in recent years, driven by the increasing humanization of pets and a heightened focus on their health and well-being. Pet owners are increasingly seeking premium, specialized, and scientifically formulated nutrition for their companions. The Lewisburg factory, with its advanced systems and process designs replicated from other successful Royal Canin facilities, ensures the brand can maintain its exacting standards for nutritional precision and meet the surging demand for its high-quality products. This investment solidifies Mars’s leadership in the pet nutrition space and its commitment to the well-being of pets worldwide.

Mars’s Enduring Legacy in the U.S.: A Century of Commitment

Mars, Incorporated’s commitment to the U.S. is deeply ingrained in its identity. As a privately-held, family-owned business, Mars has been headquartered and operated in the U.S. for more than a century. This unique structure grants the company the freedom to adopt a long-term, generational approach to its business decisions, prioritizing sustainable growth and positive impact over short-term quarterly results.

The company’s footprint across the United States is extensive and diverse. Mars maintains a significant presence in 49 states, employing over 70,000 Associates (the term Mars uses for its employees) across its various segments. This includes operating 38 factories, a vast network of veterinary clinics (such as BANFIELD™ Pet Hospital, BLUEPEARL™ Specialty + Emergency Pet Hospital, and VCA™ Animal Hospitals), specialized labs, and 16 global and regional offices. Over the last five years alone, Mars has added more than 9,000 U.S.-based Associates, demonstrating its continuous contribution to American job creation and economic vitality.

This sustained growth and investment are guided by the Mars Five Principles: Quality, Responsibility, Mutuality, Efficiency, and Freedom. These principles are not merely corporate slogans but foundational beliefs that inform every aspect of Mars’s operations and interactions:

• Quality: This principle emphasizes delivering the best to consumers, partners, and pets, extending through all aspects of the business, from sourcing raw materials to finished products.
• Responsibility: Mars takes accountability for its actions and encourages its Associates to do the same, fostering a culture of ownership and ethical conduct. This includes commitments to sustainable sourcing and responsible business practices.
• Mutuality: The belief that a mutual benefit is a shared benefit, and shared benefits will endure. This principle drives Mars to create win-win scenarios for its Associates, partners, communities, and the planet.
• Efficiency: Recognizing that resources are precious, Mars strives for efficiency to accomplish more with less, optimizing processes and minimizing waste across its vast operations.
• Freedom: As a privately-owned company, Mars values the freedom to shape its future and invest for the long term, making decisions that may not have immediate payoffs but contribute to generational impact. Performance is seen as the enabler of this freedom.

These principles collectively inspire Mars’s 150,000 Associates worldwide to contribute to a better world for people, pets, and the planet, reflecting a holistic approach to business that transcends mere profit generation.

The Broader Economic Impact and the U.S. Manufacturing Renaissance

Mars’s $2 billion investment is more than just a corporate expansion; it’s a significant contribution to the ongoing revitalization of the U.S. manufacturing sector. In recent years, there has been a renewed focus on strengthening domestic production capabilities, driven by desires for greater supply chain resilience, job creation, and economic independence. Large-scale foreign direct investment (FDI) like Mars’s plays a crucial role in this renaissance.

FDI in the United States directly contributes to job creation, technological advancement, and increased productivity. When a company like Mars invests in new facilities and upgrades existing ones, it not only creates direct manufacturing jobs but also generates a substantial “multiplier effect.” This means that for every manufacturing job created, additional jobs are supported in related sectors such as logistics, raw material supply, construction, and local services. This economic ripple effect strengthens entire communities and regions.

Furthermore, by expanding its U.S. manufacturing base, Mars enhances its supply chain resilience. The recent global disruptions have highlighted the vulnerabilities of extended, complex supply chains. Localizing production reduces transit times, minimizes exposure to geopolitical risks, and allows for quicker responses to shifts in consumer demand or unforeseen events. This strategic move benefits not only Mars but also the broader U.S. economy by fostering a more robust and self-reliant industrial base. The investment signals a strong vote of confidence in the American workforce and the U.S. as a stable and attractive environment for long-term industrial growth.

Sustainability and Innovation: Driving Mars’s Future

Beyond economic impact, Mars’s manufacturing strategy is deeply intertwined with its ambitious sustainability and innovation goals. The company is driven by the belief that “the world we want tomorrow starts with how we do business today,” a philosophy encapsulated in its “Sustainable in a Generation Plan.” This plan commits Mars to achieving net-zero greenhouse gas (GHG) emissions across its entire value chain by 2050, with an interim target of a 50% reduction by 2030, against a 2015 baseline. Impressively, Mars has already achieved a 16% reduction in its carbon footprint while experiencing approximately 60% growth since 2015, demonstrating that growth and environmental responsibility can go hand-in-hand.

The new manufacturing investments are designed with sustainability in mind. Modern facilities often incorporate advanced energy-efficient technologies, renewable energy sources, and waste reduction systems. Mars’s sustainability efforts extend across its value chain, focusing on critical areas such as:

• Healthy Planet: This includes initiatives to reduce GHG emissions, improve water stewardship, and promote sustainable land use. Mars is actively working on “climate-smart” regenerative agriculture practices, particularly for key ingredients like cocoa and dairy, which contribute significantly to its carbon footprint. For instance, the company has invested $27 million over five years in its Farmer Forward Programme to empower dairy farmers to reduce on-farm emissions in partnership with suppliers like Fonterra.
• Thriving People: Mars is committed to improving livelihoods for those in its supply chain, addressing human rights, and fostering diversity and inclusion within its workforce and communities.
• Nourishing Wellbeing: This pillar focuses on providing healthier product choices and promoting responsible consumption.
• Rethinking Packaging: Mars aims to make all its packaging recyclable, reusable, or compostable by 2025, investing in innovative materials and designs.

Innovation is another cornerstone of Mars’s forward-looking strategy. The company leverages digital transformation to enhance efficiency and agility across its global operations. This includes:

• Cloud Computing and Data Analytics: Centralized data platforms provide real-time insights into supply chain performance, energy usage, and production scheduling, enabling more informed decision-making.
• Digital Twin Models: Creating virtual replicas of manufacturing environments allows Mars to test process improvements, optimize factory layouts, and predict the impact of changes without disrupting physical operations, ensuring consistent product quality.
• Artificial Intelligence (AI): AI-driven predictive maintenance systems analyze equipment performance to anticipate failures, minimizing downtime. AI-powered vision systems are also used for real-time quality control, ensuring product consistency.
• Advanced Planning Systems: AI-powered forecasting tools optimize production scheduling and inventory management by analyzing historical data, market trends, and external factors, reducing waste and preventing shortages.
• Diversified Sourcing Strategies: To build supply chain resilience, Mars actively diversifies its sourcing for key ingredients like cocoa and vanilla, reducing dependence on single suppliers and mitigating risks from geopolitical or climate-related disruptions.

These technological and strategic advancements ensure that Mars’s new and upgraded facilities are not just larger but also smarter, more efficient, and more environmentally responsible.

Mars in the Competitive Landscape: Maintaining Leadership Through Investment

The global snacking, food, and pet care industries are highly competitive, featuring formidable players such as Mondelez International, The Hershey Company, Nestlé, and Conagra Brands. In this dynamic environment, sustained investment in manufacturing, innovation, and brand building is critical for maintaining market leadership.

Mars’s strategy of significant capital expenditure in its U.S. operations positions it strongly against its rivals. By increasing domestic production capacity, Mars can respond more quickly to market shifts, introduce new products faster, and potentially reduce costs associated with international logistics and tariffs. Furthermore, the focus on “better-for-you” categories like Nature’s Bakery and premium segments like Royal Canin allows Mars to capture growth in high-value, consumer-driven niches.

The company’s long-standing reputation for quality, coupled with its aggressive innovation agenda and commitment to sustainability, provides a distinct competitive advantage. Consumers are increasingly discerning, seeking not only quality products but also brands that align with their values. Mars’s transparent approach to its supply chain, its efforts in sustainable agriculture, and its significant investments in local communities resonate positively with this evolving consumer mindset.

A Future Forged in American Manufacturing

Mars, Incorporated’s latest $2 billion investment in U.S. manufacturing is a powerful statement about its long-term vision and unwavering commitment to the American market. Building on a century of operations and billions already invested, this new capital infusion will not only expand production capabilities for beloved brands like M&M’S and Royal Canin but also drive innovation, enhance supply chain resilience, and create significant economic opportunities across the nation.

As Mars continues to grow its diverse portfolio, from indulgent snacks to specialized pet nutrition, its strategic focus on U.S.-based manufacturing ensures it remains agile, responsive, and deeply connected to the communities it serves. This investment is a clear demonstration that for Mars, the world it wants tomorrow is indeed being built today, right here in the United States.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

30th July, 2025