Nearly 94% of consumer products companies are investing heavily in transformation, according to the latest EY State of Consumer Products report.
“For consumer products companies, AI, retailer ecosystems and shifting consumer behaviors are fundamentally changing how growth is created and captured. Demand signals are emerging faster, competition from private label and challenger brands is intensifying, and the path to purchase is influenced by digital platforms and algorithms. While many organizations are investing in new products, channels and capabilities, technology alone will not create a competitive advantage. To compete, companies will need to cut through complexity by redesigning operating models, breaking down silos and increasing speed across functions,” says Lokesh Ohri, EY Americas consumer products sector leader.
“Growth in consumer products has shifted into areas many legacy organizations were not designed to serve. The most successful companies will be those that can distinguish between complexity that creates value and complexity that destroys it. As consumer preferences fragment and new demand pools emerge, companies need to redesign their operating models and increase speed, responsiveness and cross-functional coordination to capture growth opportunities, before faster-moving competitors,” adds Richard Taylor, EY global consumer products sector leader.
Key takeaways:
· Currently, 27% of supply chain executive respondents are highly confident in their ability to calculate the value in complexity, highlighting the scope to build on existing transformation efforts and turn market signals into coordinated action.
· 94% of supply chain executives are transforming the supply chain function. Currently, 20% and 10%, respectively, report significant improvement in commercial and finance functions.
· Meanwhile, 71% of companies are now operating with integrated business planning (IBP), and only 14% of respondents strongly agree that decisions are ultimately acted upon fast, while 8% say IBP enables real-time, signal-driven replanning, and 6% say suppliers can receive, interpret and act on demand and supply signals close to real time.
· 73% of CP CEO respondents say planned AI investment for 2026 has increased compared with 2025.
· 37% of CP CEO respondents say AI is delivering measurable impact in supply chain and procurement, yet only 12% say AI impact is linked to financial reporting and regularly reviewed by senior management.
· 86% of CP CEO respondents agree that competitive advantage will increasingly depend on clear, provable consumer superiority and value rather than brand scale alone.
