How Personalization Is Transforming Consumer Packaged Goods

Traditionally, many manufacturing processes have relied on human labor, which can lead to inefficiencies, errors, and delays. But with the introduction of AI-driven automation, many of these processes are being streamlined and optimized. According to research by Accenture, 87% of CPG customers consider B2B commerce solutions that mirror B2C experiences to be essential. This highlights the growing need for CPG companies to offer integrated, consumer-centric interactions across all channels. “A key focus of my work has been aligning automation strategies with sustainability goals”, he added. The use of such systems infacilities involves processing of production data to determine areas where resources such as water and energy could be saved.

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This has been complimented by effective partnership with technology providers that enabled his team to embrace new industry trends without necessarily incurring unnecessary downtime. The consumer-packaged goods (CPG) industry is experiencing evolution, led by artificial intelligence (AI) and automation. These are not just technologies that affect how food is produced but are revolutionising the food value chain through enhancing production processes with speed, efficiency and sustainability. According to the EY Future Consumer Index, influencers are on the rise, with 45% of consumers sharing that they follow social media influencers. As much as 74% say they find influencer product recommendations trustworthy, and 61% share that they purchased a product based solely on an influencer’s recommendation.

• Companies can enter criteria for each project, such as product type, manufacturing capacity, or geographic location.
• The CPG platform uses advanced algorithms to match brands with the manufacturers that are best equipped to meet their specific needs.
• Whether a company needs to scale production quickly or find a new manufacturing partner, AI-powered platforms offer a smarter, faster solution.
• For example, a multinational CPG company uses an AI model that integrates forecasts and actual sales data between the company and its customers, linking consumer purchases directly to the source of materials.

Revolutionizing CPG: How AI and Automation Are Shaping the Future of Food Production

This evolution presents CPG companies with a unique opportunity to redefine their roles in the market. Personalization is the required pivot, a strategy that used to be aligned only with high touch industries is now becoming the standard for more relevant and timely consumer interactions. Consumers may opt for cheaper choices or switch brands for a bargain, but this is stuff everybody needs. A family may opt to squeeze a few more years from an outmoded washing machine rather than upgrade to a newer model. Consumers are more likely to delay major purchases in times of economic uncertainty.

The Struggle to Find a Reliable Manufacturer

INNOVATING WITH DATA INSIGHTSRetailers and CPG companies have vast amounts of consumer data but often lack a comprehensive view of future consumer behavior. By sharing insights and working together, they can gain a stronger understanding of consumer purchasing behaviors and create better-targeted campaigns. This collaboration can lead to more effective trade promotions and profitable business strategies. The use of CRM tools in particular can better stratify, assess, and create targeted promotional content for customers. The consumer packaged goods (CPG) industry has gone through a significant digital transformation in recent years.

This includes a smooth web or app interface, easy engagement with brands and products, access to product ratings, and a variety of payment and delivery or pick-up options. Mohan Valluri, working with a leading food production company, has spearheaded projects that incorporate AI and automation in manufacturing, packaging. Aside from analysing large sets of data, AI assess patterns across the customer journey to find moments of high engagement or potential churn risks.

Even at that point, you need to find multiple quotes and gauge how long product development will take with each manufacturer. The tech giant is renowned for strategically entering high-growth markets, excelling at offering convenience, an extensive selection, and one-day delivery, while identifying its target and outpacing competitors with superior execution. There are so many examples of brands who are getting this right, learn from them and then tweak it to suit your consumers.

• By leveraging each other’s strengths and innovations, retailers and CPG companies can approach the future from a position of strength.
• By exploring new physical channels and adapting to the growing power of larger retailers, CPG companies aim to maintain production and execute growth strategies to gain higher sales volumes.
• These innovations have driven convenience and cost efficiencies, allowing retailers to exert more control over what they sell and focus on delivering value.
• AI is playing a crucial role in meeting these heightened consumer expectations by making supply chains more responsive and agile.

“The US steel industry does not produce tin mill steel in the quality or quantities needed by US can makers, leaving it only able to supply up to 30% of can makers’ demand. The current 50% tariff on steel could increase prices for consumers by as much as 15% and impact an estimated 20,000 good paying jobs,” the trade group explained. The relationship between consumer packaged goods (CPG) companies, retailers, and consumers has undergone significant changes over the past five years. Disruption and innovation have forced CPG and retail companies to rethink their businesses, while consumers have reevaluated how they shop and what they need. The evolving relationship between CPG companies and retailers presents an opportunity for a more radical rethink of how they both go to market and measure success. By harnessing the power of automation and AI, Keychain has taken pre-existing data in a well-established industry and turned it into a powerfully innovative technological tool.

And yet, this isn’t as easy as going grocery shopping or picking out a new pair of shoes. Additionally, the growing digital population in South Africa – up 75% from 2013 to 2023 – provides further momentum for expanding commerce in the region. On the other hand, the informal market is the next frontier, largely untapped and boasting an estimated potential value of R178bn, with few players effectively serving this segment.