Bel Bets Big on Babybel: $200M Plant Expansion Shakes Up U.S. Snack Market

BROOKINGS, SD – March 11, 2026 – With the turn of golden shovels on South Dakota soil, French-based Bel Group has broken ground on a $200 million expansion of its Babybel cheese facility, a monumental investment set to double production and cement the state’s role in the global snack food landscape. The project, one of the company's largest-ever manufacturing investments in the United States, will increase the plant's annual output from 10,000 to 20,000 tons, creating an estimated 150 new jobs and significantly boosting the regional economy.

The expansion is a direct response to a voracious American appetite for the iconic wax-wrapped cheese. It underscores a broader strategic pivot by the 160-year-old company to make its U.S. operations the primary engine for future global growth.

The Snack Revolution

Bel's massive investment isn't just about making more cheese; it's a calculated move to capitalize on a fundamental shift in American eating habits. The U.S. snack market is undergoing a transformation, with consumers increasingly abandoning traditional meals in favor of convenient, portion-controlled, and nutrient-dense options. The global dairy snacks market, estimated at approximately $254 billion in 2025, is projected to surge to nearly $438 billion by 2035, with North America leading the charge.

Driving this trend is a heightened focus on protein. A 2024 survey revealed that 61% of Americans have increased their protein consumption, making it a critical factor in their purchasing decisions. Babybel, a 100% real cheese snack made with just four ingredients and delivering complete protein, is perfectly positioned at this intersection of convenience and nutrition.

"Babybel® continues to see strong demand in the U.S., driven by consumers seeking convenient, portion-sized dairy snacks made with a few ingredients and delivering complete protein," said Peter McGuinness, CEO of Bel North America, in a statement. "Expanding our Brookings facility allows us to meet that continued demand while investing in American manufacturing, local jobs and the Brookings community."

The rise of GLP-1 medications for weight management is further accelerating this shift. While these drugs may reduce overall calorie consumption, they are also steering users toward healthier choices, creating a new market for high-protein, portion-controlled foods. This evolving dietary landscape makes Bel’s focus on its iconic portion-sized snack a prescient strategy for long-term growth.

Fueling South Dakota's Economy

For Brookings and the wider South Dakota region, the expansion is a powerful economic catalyst. The project is expected to generate an annual economic impact of over $300 million for the state once fully operational in 2027. The creation of approximately 150 new jobs at the facility is a significant boon for the local workforce.

Beyond the factory walls, the most profound impact will be felt in the fields and dairy farms. To feed the expanded production lines, the Brookings plant will require an additional 650,000 pounds of milk daily, effectively doubling its current intake. This surge in demand provides a massive and stable market for dairy farmers in South Dakota and neighboring states.

This development couldn't be more timely. South Dakota's dairy industry has been on a remarkable growth trajectory, with its dairy cow population more than doubling in the past decade—a 117% increase, according to USDA figures. Bel's expansion validates and reinforces this growth, promising to strengthen regional supply chains and deepen partnerships with American farmers. The state has shown its support for the project through a $2.57 million grant from the Governor's Office of Economic Development, recognizing the investment's alignment with state goals for rural job creation and value-added agriculture.

America as the Global Growth Engine

This $200 million project is a cornerstone of Bel Group's ambitious global strategy, which firmly places the United States at its center. The U.S. is already the company's largest market, accounting for a third of its global sales with over $1.2 billion annually. After doubling its U.S. business between 2018 and 2024, Bel has set its sights on an even more audacious goal: doubling it again in the coming years. This would position the American market as the driver of more than half of the entire Bel Group's projected global growth.

"The United States is a strategic market and a key engine of growth for Bel," affirmed Cécile Béliot, CEO of Bel Group. "Expanding our Brookings facility reflects our commitment to investing locally, strengthening domestic production, and supporting sustained demand for our brands. The decision to double capacity of this facility positions us for enhanced long-term growth in the U.S."

The Brookings expansion is the latest in a series of major U.S. investments, which totaled over $350 million in 2024 and 2025. These include a recent $10 million expansion at its Little Chute, Wisconsin facility and a $130 million investment to double production of its GoGo squeeZ® fruit snacks in Nampa, Idaho. Together, these moves paint a clear picture of a company doubling down on its American operations to secure its future, transforming regional U.S. facilities into critical hubs in its global supply chain. As construction begins in Brookings, it's clear that the future of this French snacking giant is being built, one red-waxed cheese wheel at a time, in the heart of America.