How AI, Consumer Trends Will Shape the Future of the CPG Industry
Emerging technologies, economic shifts, and changing consumer expectations are redefining how companies innovate, market, and build trust
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If you could predict the future, how would you do things differently? The CPG industry is experiencing significant change with the convergence of technology, economic pressures, and changing consumer behaviors.
Understandably so, the last couple of years have been tumultuous, with supply chain bottlenecks, the rise and experimentation of artificial intelligence (AI), and inflation woes causing consumers to reduce spending.
But amid the disruption is opportunity – and lots of it. As we look ahead to 2025 and beyond, here are five predictions from Kellanova leaders that will redefine the landscape of the CPG industry:
Prediction 1: Generative AI will reinvent marketing
2025 will signal a marked acceleration of AI in marketing as companies move past pilot purgatory and can scale models that create highly personalized consumer interactions, automate processes, and provide predictive data and analytics strategies.
"It's important to note we marketers are not competing with AI. We're competing with other marketers using and scaling AI faster. There will be more competition to drive brand affinity as smaller brands can access AI-powered video production tools that were once only available to brands with big production budgets."
"At Kellanova, Generative AI is not just a tool; it's a catalyst for transformational growth. By harnessing its capabilities, we are creating personalized, engaging, and efficient marketing plans. As we move forward, those who embrace and adapt to this technological shift will undoubtedly lead in delivering exceptional consumer experiences. The future of marketing is here, and it's powered by generative AI."
– Charisse Hughes, Chief Growth Officer, Kellanova
Prediction 2: Responsible AI will be more critical than ever before
Responsible use of data and AI have been a priority for CPGs, but we can expect it to take center stage in 2025 as brands rely more on digital systems and store vast amounts of data online. Additionally, companies must prepare for potential penalties related to consumer data privacy violations and worse…data breaches. Those collecting data must be transparent about consumer data usage and prepare to uphold AI and data privacy regulations.
“At Kellanova, we have a cross-functional AI Council with business representation that reviews and assesses all AI initiatives within our risk management framework. Maintaining this steadfast commitment to responsible AI, data privacy, and compliance is non-negotiable, particularly in this data-centric era. It is critical to consider ‘should we do it, not just can we do it’ so our brands remain trusted, and our consumers remain loyal.”
“Education is key with new and emerging technologies so we are taking our people along the journey with us, with guidance, principles and training around our approach to AI, because we believe companies with strong guardrails around AI will win in 2025 and beyond.”
– Ramesh Kollepara, Chief Technology Officer, Kellanova
Discover additional tech trends affecting the food industry in 2025.
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