2024 may mark the first year since the onset of COVID-19 that the CPG industry is no longer facing the intense external pressures it endured from 2019 to 2023, including dramatic shifts in consumer behavior, supply chain disruptions, and soaring inflation. However, significant challenges remain. Can the CPG sector reclaim its position as a top performer in investor attractiveness, rising from the lower quartile of recent years back to the forefront?
A critical question is whether the industry can not only embrace technological transformations but also lead the way, setting trends rather than simply following them. So, what are the seven strategic tech trends for 2025, where CPG leadership is essential to securing a competitive edge?
1. AI Acceleration
The AI strategy is the number one priority for every CIO in a Consumer Goods company – and it’s no surprise. In areas where AI has already been implemented, it has delivered transformational outcomes in boosting results and improving efficiency. To successfully drive AI transformation, companies should focus on understanding technology trends and growing AI capabilities, experimenting with technology concepts and innovative approaches, and continuously refining their solutions until they achieve optimal performance. Here is a must-have list of AI technologies to consider for Consumer Goods sales:
- Private LLMs (Large Language Models) are tailored AI systems that operate securely within an organization’s infrastructure, ensuring data privacy and proprietary control. To know how Private LLMs enable CPG companies to leverage advanced natural language processing capabilities follow the link.
- Edge AI – the increasing computational power of edge devices and equipment enables fast, data-driven decision-making at the front line. An example for CPG is sales representatives working with retail clients in the field. Learn more about Edge AI here.
- Composite AI – solutions that integrate multiple AI capabilities. For example, a Retail Execution solution could combine image recognition, machine learning for situational analysis and optimal playbooks, and a conversational AI chatbot for recommendations and handling requests.
It is important to note that Gartner predicts a relatively quick transition of these technologies to the "plateau of productivity": within two years for Composite AI and Edge AI, and between 2 to 5 years for LLMs. You can already learn about the functionality of ready-made solutions for boosting sales and achieving perfect retail execution today:
- Composite Edge AI Solution for Field Teams
- Private LLM
2. Decision Intelligence with Agentic AI
Decision Intelligence with Agentic AI leverages systems capable of autonomously planning and executing tasks based on defined objectives, effectively acting as a virtual workforce to support and enhance human decision-making. Gartner projects that by 2028, at least 15% of routine business decisions will be made autonomously through these systems, a significant leap from 0% in 2024. Similarly, Spring Global foresees a transformative shift in CPG mid-management decision-making, driven by advanced automation and AI-powered insights in the coming years. Further details can be explored here.
3. Integrated Omnichannel Platforms
Integrated omnichannel platforms are essential for delivering seamless, consistent customer experiences across all touchpoints, including e-commerce, physical stores, and direct-to-consumer channels. These platforms enable real-time data synchronization, enhancing customer engagement while streamlining operations and inventory management. By connecting retail execution and enterprise planning, CPG companies can unlock efficiency and drive growth across the value chain.
4. Hyper-Personalization
Hyper-personalization leverages advanced AI and data analytics to create tailored experiences for consumers, customers, and employees alike. For consumers, it means customized recommendations and promotions that align with their preferences and behavior. For employees, it involves tools that provide personalized development plans, such as progress-based performance insights and tailored training opportunities.
5. Data Centric Approach
Data-centric AI stands out from model-centric AI through its emphasis on data comprehension and quality, as well as significance of domain expertise. Learn more about the Data-Centric approach to AI here.
6. Responsible AI
Responsible AI ensures that artificial intelligence solutions deployed within the CPG sector are transparent, ethical, and aligned with societal values. By prioritizing fairness, accountability, and privacy, companies can mitigate risks associated with AI bias and misuse. Adopting Responsible AI practices not only builds trust with consumers but also safeguards brand reputation in an increasingly AI-driven market.
7. Advanced Supply Chain Intelligence
Advanced supply chain intelligence combines predictive analytics, IoT, and real-time data integration to optimize logistics, inventory management, and demand forecasting. By adopting AI-driven solutions, CPG companies can identify potential disruptions, enhance agility, and ensure faster delivery of goods. This intelligence not only boosts operational efficiency but also improves customer satisfaction by ensuring product availability and reliability.
Looking ahead to 2025 and the next five years, the CPG industry stands at a pivotal moment, where transformative technologies will determine its trajectory. By leading in AI-driven innovation, sustainability, and personalized experiences, CPG companies can redefine their role in a competitive and fast-evolving market. The next half-decade offers an unprecedented opportunity for businesses to not only overcome past challenges but to establish themselves as pioneers of efficiency, trust, and consumer engagement. Those who act decisively now will shape the future of the industry, setting benchmarks for success and resilience in the years to come.
