International business expansion into the United States represents a major strategic opportunity for Spanish companies, driven by its vast market size, high consumer purchasing power, and sustained economic dynamism. However, achieving successful expansion requires thorough planning and preparation. From navigating the complexity of its regulatory framework to addressing geographic diversity and cultural differences, each aspect demands meticulous attention, with challenges varying depending on the product or service being introduced. In this article, we break down the essential pillars for a successful business expansion, integrating legal, logistical, and commercial perspectives, with a special focus on South Florida as a strategic and preferred gateway.

U.S. REGULATORY FRAMEWORK: A MULTI-TIERED SYSTEM

The U.S. regulatory system is defined by its multi-tiered structure, operating across three primary levels: federal, state, and county/local, each with clearly defined jurisdictions. Understanding this framework is critical for any business seeking to operate in the U.S.

At the federal level, numerous agencies regulate key sectors. Among the most relevant are:

• Consumer Product Safety Commission (CPSC): Responsible for ensuring the safety of a wide range of consumer products. For example, the CPSC sets rigorous standards for children’s toys, appliances, and other products, ensuring that they do not pose safety risks to consumers.
• Food and Drug Administration (FDA): With one of the broadest purviews, the FDA oversees food, drugs (both over-the-counter and prescription), tobacco, dietary supplements, cosmetics, vaccines, biopharmaceuticals, blood transfusions, medical devices, equipment that emits electromagnetic radiation, animal feed, and veterinary products. The FDA’s approval process for drugs and medical devices, for example, is known to be lengthy and rigorous, requiring extensive clinical trials and detailed documentation.
• Environmental Protection Agency (EPA): Tasked with protecting the environment and human health, the EPA sets and enforces regulations on air and water quality, hazardous waste management, pesticides, and toxic substances. Companies operating in industrial sectors must comply with EPA regulations on emissions and waste management to avoid penalties and ensure environmental sustainability.
• Federal Trade Commission (FTC): Dedicated to regulating business practices and protecting consumers, the FTC combats unfair business practices, misleading advertising, and monopolies.

These and other federal agencies issue a vast body of regulations compiled in the Code of Federal Regulations (CFR), a structured compendium organized into 50 thematic titles that codify mandatory federal-level rules. For example, Title 7 of the CFR focuses on agriculture regulation, while Title 21 covers food and drug regulations.

However, regulatory complexity does not end at the federal level. At the state level, each state has its own regulatory framework, which can sometimes differ significantly from federal regulations and even between states. These regulations can substantially impact the marketing of products and services. A paradigmatic example is California’s Proposition 65, which requires clear warnings about the presence of chemicals deemed carcinogenic or toxic in products sold within the state, creating significant implications for many businesses. Other examples of state-level regulations include those related to professional licenses, state sales taxes, and environmental regulations specific to each state.

Finally, the county and local levels add another layer of regulation. Zoning ordinances, local business licenses, local taxes, and county-specific regulations can vary widely even within the same state. For instance, a company opening a restaurant must comply with local zoning regulations, health and safety permits, in addition to state and federal requirements.

Beyond the legal framework, sector-specific regulations and technical standards are critical. Organizations like ASTM International or Underwrites Laboratories (UL) develop thousands of technical standards referenced across industries. Compliance with these standards, though often voluntary, can become a de facto requirement to operate in certain markets or to ensure product quality and safety. For example, ASTM standards apply to construction materials, medical devices, electronics, and many other sectors.

GEOGRAPHY AND CONSUMPTION: ADAPTATION TO A FRAGMENTED MARKET

Adaptation of the Value Proposition

Expanding into the United States requires integrating strategies that simultaneously address regulatory, operational, and cultural complexities. Below, we analyze four aspects designed to turn the fragmentation of the U.S. market into a competitive advantage.

1. Adaptive Innovation

Innovation must go beyond mere technological adoption. According to McKinsey, 84% of executives consider it critical for growth, but in traditional sectors (agri-food, construction), it involves redesigning processes (e.g., FSC-certified sustainable packaging) or business models. Notable examples include Cosentino City for the habitat sector or companies integrating blockchain to ensure traceability, meeting transparency requirements from major retailers like Walmart.

2. Product Adaptation

Recognized certifications in the U.S. market are not just labels but commercial tools for accessing premium niches and distributors. Key certifications include:

• BRC/IFS: Essential for food products, required by retailers like Walmart and Whole Foods to ensure safety and traceability.
• USDA Organic: Federal organic certification, crucial for agricultural and natural cosmetic products.
• Kosher/Halal: Vital for reaching ethnic or religious niches, particularly in states like New York and California.
• ANSI: Develops voluntary consensus standards with industry, technical experts, and government agencies. While ANSI accredits standards from organizations like ASTM and UL, it does not develop them directly. Although compliance is voluntary, many industries adopt them to enhance safety, quality, and performance, and they may be required by associations or contractual specifications.
• FCC: Mandatory for devices emitting radio frequencies (IoT modules, routers).
• Technical Adaptations: Voltage (120V) and Type A/B plugs are essential for European products.

3. Logistic Adaptation

Implementing management systems inspired by global value chains allows companies to establish strategic distribution center networks in key locations, ensuring fast deliveries to major retailers. Additionally, nearshoring in Mexico presents a cost-effective option, reducing expenses and lead times while leveraging United States-Mexico-Canada Agreement (USMCA) benefits. This supply chain flexibility is crucial for adapting to demand fluctuations and disruptions, strengthening competitiveness in the dynamic U.S. market.

4. Digital Adaptation

A website with English content and prices in USD is the foundation, but not enough. A more advanced strategy should include SEO-optimized content for regional searches (e.g., “extra virgin olive oil Florida”), digital certifications (e.g. BBB Accredited Business), and integration with marketplaces like Amazon or Instacart.

Geographic Diversity: A Naturally Fragmented Market

The United States, due to its vast territorial extension of 9.8 million km², does not constitute a homogeneous market. The climatic diversity, which varies from arctic to subtropical regions, the demographic complexity with a rich mix of ethnicities and cultures, and the socioeconomic disparities between regions, imperatively demand the adoption of highly segmented marketing and commercialization strategies adapted to the particularities of each zone.

In the context of smart specialization, the American geography reveals a panorama rich in industrial clusters with differentiated sectoral focuses across the country, of which we can highlight:

• New York: Global financial center, with Wall Street as the epicenter and the New York Stock Exchange, the largest stock exchange in the world by total market capitalization.
• Silicon Valley (California): Global epicenter of technology, encompassing everything from software and hardware to semiconductors, social networks and electric vehicles.
• Seattle (Washington): Leader in the aerospace industry (Boeing), electronic commerce (Amazon) and software (Microsoft).
• Boston (Massachusetts): Focus on biotechnology, pharmaceuticals and higher education (MIT, Harvard), attracting talent and investment in research and development.
• Houston (Texas): World capital of energy, with an important petrochemical and space industry (NASA).
• Research Triangle (North Carolina): Global center in innovation, with a focus on biotechnology and science.
• Los Angeles (California): Cluster of creative industries in film, television, music or video games.

This heterogeneous distribution of economic activity underscores the need for Spanish companies seeking to expand in the US to accurately identify the relevant clusters for their sector and adapt their offer and marketing strategies to the specific characteristics of each region. A generic and uniform marketing strategy for the entire country is doomed to failure, given the inherently fragmented nature of the American market.

Demographic Peculiarities

Regarding demographic peculiarities, the Northeast of the United States stands out for concentrating the highest population density in the country, characterized by a high level of education, per capita incomes above the national average, and a strong affinity towards European products and lifestyles. This affinity is partly explained by the historical influence of European immigration in the region, which has shaped its tastes and consumption preferences, making the Northeast a particularly receptive market for European brands, gourmet products, fashion, and consumer trends from the old continent. Cities like New York, Boston, Philadelphia, and Washington D.C. represent sophisticated and high-purchasing power consumption centers in this region.

However, Florida, with Miami metro area as its main region, is emerging strongly as a strategic hub for business expansion and Spanish investment and a strategic hub for business expansion into the US, especially for companies also seeking a gateway to the Latin American market. As SelectFlorida states, this privileged position of Florida is based on a number of key factors:

• Large Dynamic and Expanding Market: Florida’s economy, which exceeds one trillion dollars, ranks as the 4th largest among US states and 14th worldwide. With constant demographic growth and a diversified economy, Florida offers a robust domestic market with high potential for future growth. Key sectors such as tourism, healthcare, financial services, and technology drive the state’s economy.
• Global Connectivity and Infrastructure: Florida has state-of-the-art infrastructure that facilitates the efficient movement of goods, people, and data on a global scale, providing privileged access to the rest of the United States, Latin America and the Caribbean, as well as Europe. Its multimodal transportation system includes 20 commercial airports and 15 deep-sea ports, guaranteeing exceptional connectivity with markets around the world. The Port of Miami is the world’s leading cruise port and one of the most important cargo ports in the US. Florida’s network of interstate highways, railroads, and data ports complements this world-class transportation infrastructure.
• Gateway to Latin America and the Caribbean: Due to its strategic geographic location, advanced infrastructure, access to financing, and multicultural and multilingual workforce, Florida is consolidating itself as the main gateway to the markets of Latin America and the Caribbean for both American and foreign companies. Florida represents approximately one-third of the total US trade with Latin America and the Caribbean, and Florida’s airports offer more direct flights to Latin American and Caribbean cities than the rest of the United States combined, reinforcing its role as a commercial bridge between both regions.
• Pro-Business Environment and Strong Latin Presence: Florida is distinguished by a regulatory environment favorable to business investment, a low tax burden, and a relatively agile bureaucracy. In addition, Florida is home to a significant concentration of companies from Latin America and Spain, creating a multicultural and bilingual business ecosystem. The presence of foreign affiliated companies in Florida represents an investment of nearly 100 billion dollars and generates employment for more than 417,000 Floridians, demonstrating the state’s attractiveness for foreign investment. Florida’s pro-business climate is consistently ranked among the most favorable in the US in various rankings and competitiveness indices.

ANALYSIS OF THE U.S. CONSUMER PROFILE

According to studies by McKinsey and Deloitte, in an analysis at the end of 2024, consumer spending forecasts remained relatively moderate, especially in discretionary and luxury categories, such as clothing and footwear, consumer electronics, travel and leisure, or high-end items. This moderation indicated some caution in spending, even with an improvement in overall sentiment. 74% of consumers reported continuing to prioritize the purchase of lower-value items, which shows a persistent “value-seeking” behavior. This behavior translates into a preference for store brands or private labels, the active search for discounts and promotions, the exhaustive comparison of prices, and a greater sensitivity to price in general. Discretionary spending intentions showed a slight improvement throughout 2024 but continued to be below pre-pandemic levels of 2021. The year 2021, marked by the initial economic recovery after the first impact of the pandemic and the boost from economic stimulus packages, represented a period of greater dynamism in discretionary spending, which explains why it is taken as a reference point to assess the recovery.

Generational Differences

Baby Boomers and Generation X showed higher levels of optimism compared to younger consumers. This difference could be explained by the greater financial stability and lower sensitivity to labor market volatility that usually characterize these more mature generations, as well as by a more experienced life perspective in the face of economic fluctuations. Baby Boomers, in many cases, have accumulated savings and properties, while Generation X, at the peak of their professional career, may feel less vulnerable to economic uncertainty.

A significant decrease of 11 percentage points was observed in the fourth quarter in the proportion of Gen Z members who planned to “splurge”, indicating greater caution and adjustment of spending expectations in this generation. This greater caution in Gen Z could be due to a greater sensitivity to long-term economic uncertainty, concerns about debt and a prioritization of experiences and sustainability over excessive material consumption. Generation Z, more influenced by recent economic crises and with greater social and environmental awareness, could be redefining their spending priorities.

86% of Generation Z and Millennial individuals reported changing residences in the third quarter of 2024. This data suggests a significant trend towards residential mobility in these younger generations, which could include moves to more affordable or shared housing, geographic relocation in search of better job opportunities or a delay in the formation of independent households. This phenomenon has important implications for the real estate market, the moving-related services sector, and for marketing strategies targeted at these generations, which could be prioritizing flexibility and residential adaptability.

Income Levels

High-income consumers continued to show greater economic optimism compared to middle- and low-income consumers. This greater optimism in the higher income levels could be explained by a lower sensitivity to the impact of inflation on essential goods, higher levels of savings and financial assets that offer them a cushion against uncertainty, and less concern for job security.

Households with low-to-middle incomes (around $48,000 in 2023) experienced a greater percentage increase in their income (8.1% annualized between Dec. 2020 and Jun. 2024) compared to high-income households (around $135,000), whose growth was 7.4%. While both groups experienced significant income growth, the greater relative growth in low-to-middle income households could indicate some narrowing of income inequality at the percentage level or reflect specific wage and employment dynamics in different sectors.

Spending Intentions

Consumers expressed plans to increase spending primarily on essential items, such as baby supplies (diapers, formula), gasoline, and basic food items (meats, fruits, vegetables, bread, dairy products), reflecting a prioritization of spending on basic necessities in the face of rising prices. In contrast, there was a reduction in spending intentions for semi-discretionary products, categories that cover important needs but allow for some flexibility in consumption, such as everyday clothing, non-athletic footwear, non-essential personal care products, small appliances, or basic furniture. This reduction in semi-discretionary spending could indicate a strategy by consumers to concentrate spending on strictly essential items and seek greater value in discretionary categories or simply limit overall spending in the face of economic uncertainty.

77% of surveyed Americans reported having made some type of “trading down” in their consumption habits during the last three months. This high percentage demonstrates a widespread consumer strategy of seeking more economical alternatives and reducing spending across various categories. This “trading down” manifests in various forms, such as opting for store brands or private labels instead of leading brands, reducing the quantity purchased, concentrating purchases during sale and promotion periods, eliminating purchases considered non-essential, or using coupons and discounts more actively.

Additionally, an increase in the use of “Buy Now, Pay Later” (BNPL) services was observed in the fourth quarter of 2023 compared to the previous quarter. BNPL services allow consumers to acquire products and services immediately and split the payment into installments, generally interest-free if deadlines are met. The rise of BNPL could be a response to greater inflationary pressure on household budgets, leading consumers to seek ways to facilitate access to goods and services, even for everyday purchases, as well as the ease of access to credit that these platforms offer compared to traditional credit cards.

BUSINESS EXPANSION STRATEGIES TO THE U.S. 

To achieve successful business expansion in the U.S. market, Spanish companies can adopt multiple strategies tailored to their industry, resources, and objectives:

1. Direct Exports: Sell products through importers, distributors, or online platforms. Ideal for SMEs looking to test the market with controlled investment. Requires compliance with federal (FDA, FTC) and state regulations, as well as adapting packaging and labeling.
2. Joint Ventures: Create alliances with local partners to share risks, resources, and market knowledge.
3. Mergers & Acquisitions (M&A): Purchase established local companies to gain immediate market share and infrastructure. Effective in regulated sectors (e.g., healthcare, energy).
4. Franchising: Replicate successful models with local operators. Works well in sectors such as food or retail, leveraging the familiarity of Spanish brands (e.g., Zara).
5. Commercial Office or Subsidiary: Establish a physical presence in strategic areas to convey greater commitment, security, and reliability to customers.

Each strategy demands analysis of multi-level regulations (federal, state, local) and market adaptation. The choice depends on investment capacity, acceptable risk, and long-term objectives.

Strategic Alliances

In a market as vast and complex as the United States, establishing strategic alliances becomes a critical success factor for Spanish companies. These alliances can take various forms and encompass different types of organizations:

Support Institutions for Foreign Trade in Origin

Public organizations in the country of origin, such as trade promotion agencies, regional Chambers of Commerce, or ICEX, can provide support with different types of aid and commercial actions.

Binational Spanish Institutions in the U.S.

ICEX, through its various offices in the United States, and the Spain-US Chamber of Commerce, located in Miami, play a fundamental role in supporting companies in the US market.

Specifically, the Spain-US Chamber of Commerce assists in preparation, internationalization, implementation, and consolidation, accompanying Spanish companies seeking to expand to the U.S. Among the services of this Chamber are:

• Consulting and advisory services in international trade and business development.
• Support in setting up operations for Spanish companies wishing to expand to the United States, and American companies interested to expand to Spain.
• B2B meeting agendas for searching, identifying, and contacting suppliers, strategic partners, investors, or clients.
• Customized market reports based on companies’ needs.
• FDA services, including registered U.S. Agent, FFR, FCE, and SID registrations, labeling analysis reports, or processing of Prior Notices.
• Marketing, promotion, communication, and organization of high-impact seminars and events to support companies and foster networking among entrepreneurs and executives.

Networking

In the U.S. market, mutual support among entrepreneurs, even between competitors, is a widespread and valuable practice. The U.S. market offers vast opportunities, and companies tend to focus on specific niches. Therefore, collaboration and the exchange of experiences among entrepreneurs can be highly beneficial. This support can materialize in:

• Exchange of information and advice about the U.S. market.
• References and recommendations for suppliers, distributors, or professionals.
• Occasional collaborations on specific projects or joint marketing actions.
• Creation of informal networks for contact and mutual support.

U.S. Organizations

At the U.S. level, economic development agencies such as SelectFlorida, regional American Chambers of Commerce, industry associations, or local business groups can play a fundamental role in facilitating the entry and establishment of Spanish companies in specific regions and sectors.

Is your company expanding to the U.S.? Join the Spain-US Chamber of Commerce to access exclusive networking opportunities and industry insights. Became a member.

CONCLUSION

To wrap up, A well-planned business expansion into the U.S. presents Spanish companies with significant opportunities, but success hinges on careful planning, adaptation, and strategic partnerships. At the Spain-US Chamber of Commerce, we are committed to guiding and supporting Spanish businesses through every step of this journey. From navigating the complexities of the U.S. regulatory landscape to fostering valuable connections within the American business ecosystem, our services are designed to empower Spanish companies to thrive in the U.S. market and build lasting success. We believe that through collaboration, knowledge sharing, and dedicated support, Spanish companies can unlock their full potential and achieve their expansion goals in the United States.

Sources: Spain-US Chamber of Commerce, SelectFlorida, ICEX, eCFR.gov, FDA, EPA, FTC, CPSC, ASTM, State of California Office of Environmental Health Hazard Assessment (OEHHA), Mckinsey & Company (1, 2, 3), Deloitte (1, 2), Oxford Economics, Cosentino.