The Surge of AI in Consumer Packaged Goods: Trends and Challenges for 2026

According to a recent report by Bright Green Partners, the use of artificial intelligence (AI) among executives in the consumer packaged goods (CPG) sector has skyrocketed by 69% over the past year. While this surge is not entirely surprising, large food corporations must remain aware of ongoing challenges to truly harness the power of AI and unlock its meaningful commercial impact. The key to innovation in agrifood lies in human creativity and high-quality datasets.

What’s Working in AI Adoption

Based in Amsterdam, Bright Green Partners has identified AI in food production as one of the eight key trends to watch for executives, investors, and innovation leaders in the agrifoodtech space by 2026. Here are some highlights from the report:

• AI in food processing is set to soar from approximately $15 billion in 2025 to around $140 billion by 2034, reflecting a compound annual growth rate (CAGR) of 28%.
• CPGs are leading the charge in AI adoption, with 71% of surveyed executives now employing AI, up from 42% in 2024.
• AI technologies facilitate faster food formulation cycles. For instance, Nestlé was able to generate over 1,300 product concepts in just three weeks, a process that typically took months. Out of these, around 30 concepts made it into the development pipeline.
• AI enhances ingredient performance predictions, allowing companies to improve the health and sustainability profiles of their products without sacrificing taste and sensory qualities.
• Sensory modeling has become more accurate, as AI can predict key aspects like taste, mouthfeel, and crispiness, thereby optimizing alternative proteins, beverages, and ready-to-eat meals.

Challenges Ahead

Although CPGs are taking the lead in AI adoption, the Bright Green Partners report emphasizes several critical challenges that could hinder innovation:

• Resistance to Change: Many organizations continue to adhere to traditional methods, resulting in slow AI integration into existing workflows. This risk-averse mindset, combined with siloed R&D structures and limited digital skills, hampers teams’ trust in AI-generated recommendations.
• Risk of Homogeneity: Relying too heavily on generic AI models could lead to homogenized products within companies and the broader industry. Thus, human creativity and proprietary datasets have become essential differentiators.
• Overestimating AI’s Creative Capabilities: Experts note that while AI excels at refining existing concepts, it doesn’t inherently generate novel ideas. The highest value currently lies in the synergy of human insight combined with data-driven precision.

Startups Paving the Way

The report also highlights various startups that are designing AI tools specifically tailored to meet corporate needs in the agrifoodtech arena. For example, NotCo leverages its AI technology to assist partners such as Kraft Heinz in developing improved products.

As the landscape continues to evolve, collaboration between established CPG companies and innovative startups will be crucial for unlocking the full potential of AI in the agrifood sector.