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CHICAGO – Kellanova, a leader in the Consumer Packaged Goods (CPG) sector, has outlined five predictions that they believe will redefine the industry's future by 2025 and beyond.
The CPG industry is undergoing significant transformation, shaped by the convergence of technology, economic challenges, and changing consumer behaviors. Recent years have brought disruptions like supply chain bottlenecks, inflation, and the rapid emergence of artificial intelligence (AI). Despite these challenges, Kellanova leaders see substantial opportunities for growth and innovation in the years ahead.
Scot Meyer
Generative AI to revolutionize marketing
According to Kellanova leaders, generative AI will transform marketing. By 2025, companies are expected to move beyond initial AI experiments and implement large-scale applications that enhance consumer interactions, automate processes, and provide predictive analytics.
"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," says Charisse Hughes, Chief Growth Officer at Kellanova.
"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."
Responsible AI takes center stage
As digital systems become more integral to business operations, responsible AI usage and data privacy will be crucial. Kellanova emphasizes transparency and compliance with data regulations to maintain consumer trust and loyalty.
"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," says Ramesh Kollepara, Chief Technology Officer at Kellanova.
"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."
Gen Z and Gen Alpha reshape consumer engagement
The preferences of younger, tech-savvy generations, such as Gen Z and Gen Alpha, reshape how brands interact with consumers. These digital-native groups prioritize authenticity, personalization, and seamless digital experiences.
"It's critical for brands to take a digital-first approach as the Gen Z and Gen Alpha are digital natives having grown up in an era where technology is deeply rooted in everyday life. Their comfort with social media, e-commerce, and digital communication sets them apart from previous generations," notes David Pearson, Senior Director of Global Brands at Kellanova.
"With the help of our extensive databases that use AI, we recently launched a digital twin of our consumer to help us predict their behaviors and help us drive personalized experiences. Additionally, our beloved Pringles mascot, Mr. P, now has an AI-powered persona that enables him to communicate through his bowtie-shaped speech bubbles, interacting with consumers and providing real-time answers to questions. The collection of 1P data allows us to drive engagement and loyalty."
Trusted data and traceability drive agility
Generating and using high-quality, traceable data will be critical for making agile, informed decisions. Kellanova's focus on data reliability and transparency is designed to build consumer confidence and streamline operations.
"We use data and insights to unlock value, whether that's through how we connect with our customers and consumers in a more meaningful way or through our ways of working. Ensuring the quality and traceability of our data through our Better Data, Bigger Possibilities Framework builds consumer confidence while fostering stronger relationships and loyalty through transparent and reliable brand interactions," says Loretta Franks, Chief Data & Analytics Officer at Kellanova.
Collaborations and partnerships become essential
In an era where traditional marketing approaches are losing impact, partnerships and collaborations are gaining importance. By aligning with cultural trends and leveraging data-driven insights, brands can connect more deeply with consumers.
"When a brand tightly defines its strategy, including core values, personality, and the consumer they're trying to reach, consumer passion points and culture become deeply connected to strategic imperatives. As a result, culture influences how brands envision future growth with consumers, how they brief their agencies, how they plan their annual calendars, and structure their teams. In many ways, it's about returning to the basics and truly focusing on the consumer," says David Lee, Sr. Director, Global Licensing & Cultural Marketing at Kellanova.
"By leveraging new and diverse types of data—particularly through advancements like data clean rooms and retail media capabilities across marketing specializations—we gain deeper insights into the consumer and what resonates most with them. These innovations not only enhance our understanding but also empower us to collaborate more effectively with partners, unlock richer insights, and create more impactful, culturally relevant connections with consumers."
As the CPG industry evolves, technology becomes a central force across all business functions, from marketing to operations. Collaboration and innovation will be key to unlocking new opportunities and delivering value to consumers.
Kellanova's predictions for 2025 and beyond highlight the potential for the CPG sector to thrive in a dynamic, technology-driven marketplace. By embracing these trends, companies can position themselves for success in the years ahead.
