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The traditional approach for capacity expansion problem aims to balance investment costs with the returns obtained from production. These formulations ignore the behavior of competitive markets in which buyers select their providers according to their own interest. We propose a bilevel optimization formulation that considers the industrial producer and the markets as independent decision makers. The upper-level problem maximizes the profit of a producer whose revenue is subjected to a lower-level linear program (LP) that minimizes markets expenses. As an alternative to the single-level reformulation based on the KKT optimality conditions, we propose an approach based on strong duality of the lower-level LP. Both reformulations are shown to yield the same solution, but the duality-based reformulation achieves a significant reduction in solution time.