Consumer packaged goods (CPG) manufacturers are taking a more measured approach to growth in 2026. In fact, as economic pressures persist and costs continue to rise, companies are pulling back from aggressive expansion and focusing on strengthening their existing operations instead, according to Keychain’s 2026 CPG Intelligence Report.
“Growth in CPG is being redefined, and AI is determining who can keep pace,” says Oisin Hanrahan, CEO and co-founder of Keychain. “It’s no longer just about how quickly manufacturers can scale. It’s about how effectively they can innovate, adapt, and do more with the resources and systems they already have.”
Key takeaways:
· Rather than pursuing acquisitions or exits, many are investing in their existing operations: 52% plan to add new production lines, while 25% plan to open new facilities.
· Companies adding new production lines are 2.1 times more likely to expect revenue growth of more than 20%, and those investing between $250,000 and $5 million in capital expenditures anticipate breakout growth at twice the rate of companies making no such investments.
· After a relatively modest 2025, when 21% of manufacturers saw revenue decline and only 15% achieved growth above 20%, the outlook has turned more optimistic, with companies focusing on winning new customers rather than external capital.
· Customer acquisition is the clear priority across the industry, identified as a top growth strategy by 95.7% of private label expanders (PL) and 67% of non-expanders (Non-PL).
· To win new business, manufacturers are also leaning into partnerships and referrals (72% PL vs 45% Non-PL); expanded capabilities (68% PL vs 39% Non-PL); and increased investment in sales and marketing (65.9% PL vs 48% Non-PL).
· More than half of manufacturers have an AI strategy in place: 12.3% have already deployed it, 18.4% are piloting it, and 22.1% are planning to implement it. This adoption is creating a significant gap: AI-enabled manufacturers are 2.6x more likely to expect revenue growth above 20% compared to those with no plans.
· Manufacturers not using any operational software (30.4%) are more likely to see revenue decline than those using at least one tool (21.1%). Looking ahead, 59% of respondents are purchasing or considering new software in 2026, primarily to reduce errors (70%), cut costs (53%), and support compliance (46%).
· Newer manufacturers are already outperforming legacy players, with companies operating for less than five years growing revenue above 20% at 3.6 times the rate of those over 20 years old.
