Looking ahead to 2025, the consumer packaged goods industry trends consistently revolve around adaptability and innovation. Decision-makers are turning to data analytics and tech to solve key challenges. After analyzing over 450,000 startups, we’ve come to a series of remarkable insights revealing a clear shift: sustainability is no longer optional, AI is reshaping how companies understand their consumers, and supply chains are getting smarter.
Here’s a quick look at what’s shaping the future:
- Sustainability leading the way
- AI and data are transforming consumer insights
- Efficiency improvements in supply chain business models
- Product innovation keeping pace with market demands
- CPG marketing trends driving deeper consumer engagement
Let’s get into it.
Key Takeaways
Source: SwitchPitch proprietary data available on the platform
The report researches startups partnering with consumer packaged goods (CPG) companies, categorizing them into key areas of innovation. The analysis reveals a strong focus on sustainability and technology-driven solutions, with diversification across various aspects of the CPG value chain.
1. Sustainability Leads the Way (32% of Startups)
One of the top consumer packaged goods industry trends is sustainability. In recent years, this concept has turned from a nice-to-have to a must-have. Companies must think beyond recyclable packaging and focus on lifecycle approaches, including upcycling, reducing waste, and incorporating renewable materials.
Consumers want better products for the environment, so the way to go is to shift away from single-use plastics, reduce carbon footprints, and embrace the circular economy. Governments are also rolling out regulations requiring companies to meet sustainability standards, and ignoring these shifts can result in significant costs, fines, and lost consumer trust.
The technologies driving change
Sustainable innovation goes hand in hand with technology. From bioplastics to chemical recycling, technology is accelerating the pace at which CPG companies can adopt eco-friendly practices. For example:
- RWDC Industries is pioneering the development of biodegradable bioplastics, offering CPG companies a viable alternative to traditional plastics.
- Pyrowave, another standout in the space, uses microwave-based chemical recycling technology that can break down plastic waste into reusable materials.
The relevant startups in the industry
It’s startups that are driving much of the innovation in the sustainability space. According to our proprietary research, companies like:
PS: Did you know that through SwitchPitch, CPG companies can efficiently track and partner with the right startups driving sustainable innovation? Our proprietary data allows enterprises to access 450,000+ startups, including industry leaders like RWDC Industries and Pyrowave, to accelerate their sustainability efforts.
2. AI and Data Analytics Are Transforming CPG (16% of Startups)
Another one of the major consumer packaged goods industry trends is AI, affecting all industries. Companies are using this tech to:
- Gain deeper insights into consumer behavior
- Optimize operations through automation and in-depth analysis
- Streamline product development through AI-powered MVPs and faster research
The goal? Deliver personalized experiences and make data-driven decisions that improve efficiency and business resilience.
As consumers expect more personalized interactions and products, AI and data have become critical in shaping strategies. From predicting demand to optimizing marketing campaigns, companies using AI can respond faster to shifts in consumer preferences.
Additionally, AI helps businesses reduce inefficiencies and uncover new market opportunities by analyzing vast data sets that would otherwise go unnoticed.
The technologies driving change
AI-driven solutions are revolutionizing how CPG companies operate. Gen AI and Machine Learning models help analyze consumer behavior, giving businesses insights into purchasing patterns and preferences, as well as sentiment analysis insights to measure and assess demand.
A relevant example comes from Mattel and their use of AI in the Hot Wheels product line. Mattel used AI to analyze consumer behavior by scanning vast amounts of unstructured data, such as online reviews and social media feedback. The result was a significant acceleration in their design process. What used to take weeks was done in a day, allowing them to test and iterate rapidly, while aligning with consumer demand.
The relevant startups in the industry
Startups like QM Scientific (AI retail platform for personalized shopping) and Everstream Analytics (AI for supply chain risk management) are making significant waves in the CPG space, enabling companies to reduce costs, boost engagement, and forecast demand.
3. Supply Chain Innovation (11% of Startups)
Supply chain innovations are another CPG trend to watch out for. As global disruptions continue to challenge traditional logistics, companies are adopting AI-powered tools and advanced analytics to create more resilient, agile supply chains.
The CPG industry has always relied on efficient supply chains, but recent global events have highlighted their fragility. Companies rely on:
- Real-time visibility
- Risk management
- Predictive capabilities
to mitigate disruptions and optimize logistics.
Traditional supply chain methods are no longer sufficient, and firms are turning to startups that offer data-driven, adaptive solutions.
The technologies driving change
Several advanced technologies are reshaping the supply chain landscape:
- Artificial Intelligence (AI) is enabling smarter forecasting and real-time data analysis to predict supply chain disruptions, optimize routes, and streamline sourcing.
- Internet of Things (IoT) devices are providing end-to-end visibility, allowing companies to monitor goods throughout the supply chain, improving accuracy and reducing losses.
- Blockchain technology is enhancing traceability, ensuring transparency in transactions, and helping companies track products back to their origin, ensuring ethical sourcing and reducing fraud.
- Robotic Process Automation (RPA) is automating repetitive tasks like inventory management and order processing, improving speed and reducing human error.
- Predictive analytics are being used to anticipate demand shifts, allowing companies to adjust their supply chain strategies in real time.
The relevant startups in the industry
Startups like Scoutbee and Everstream Analytics are revolutionizing supply chains by offering CPG companies the tools to anticipate risks, reduce waste, and streamline sourcing.
4. Product Development and Innovation (11% of Startups)
Product development in the CPG industry is being transformed by AI, as companies increasingly rely on data-driven insights to design products that meet evolving consumer needs.
The technologies driving change
- AI-driven R&D platforms help companies experiment with new formulas, packaging, and product features with unmatched speed.
- Additionally, 3D printing technology and virtual prototyping are shortening development cycles by allowing real-time testing and adjustments.
The relevant startups in the industry
Startups like The Good Face Project are revolutionizing beauty product development with AI, enabling companies to create custom formulations faster. Meanwhile, Turing Labs uses AI-driven research to help CPG companies tailor their products to specific consumer preferences, shortening the typical R&D process by months.
5. Marketing and Consumer Engagement (11% of Startups)
Marketing strategies are a major CPG trend, with companies delivering more personalized and engaging consumer experiences. By tapping into consumer data, companies can now fine-tune their marketing efforts to maximize ROI and build deeper audience connections.
The technologies driving change
- AI and machine learning are key drivers in personalized marketing, helping companies predict consumer preferences and deliver tailored content. Tools like predictive analytics allow brands to anticipate buying behaviors and optimize marketing campaigns in real-time.
- Customer data platforms (CDPs) are also becoming essential for gathering and analyzing consumer data from multiple channels, offering insights into how to better target marketing efforts and enhance engagement.
- Natural Language Processing (NLP) empowers sentiment analysis, allowing companies to measure how consumers feel about products and adjust messaging.
The relevant startups in the industry
Startups like Social Nature redefine product sampling through digital platforms, helping brands reach consumers in a more engaging and interactive way. Influential uses AI-powered influencer marketing to match brands with influencers that align with their target demographics, optimizing reach and engagement.
6. Packaging and Materials Innovation (11% of Startups)
Think packaging is just about protection and branding? Think again. Consumers expect sustainable, eco-friendly solutions that reduce environmental impact while still providing functionality and appeal. As a result, companies are rapidly innovating in the materials they use for packaging, focusing on sustainability and reducing waste.
The technologies driving change
- Bioplastics. Companies are shifting from traditional plastics to biodegradable alternatives. Materials like PLA (polylactic acid), derived from renewable resources like cornstarch, are becoming increasingly popular for packaging, as they also have the potential to optimize costs.
- Compostable packaging. This technology allows packaging to break down naturally, reducing landfill waste. Seaweed-based materials, for instance, are providing exciting eco-friendly alternatives.
- Smart packaging. Using IoT and embedded sensors, smart packaging can track product conditions, monitor freshness, and even communicate with consumers.
The relevant startups in the industry
Startups like Sway are leading the charge with seaweed-based packaging, offering compostable solutions that meet environmental standards without compromising on durability. Mushroom Material is another game-changer, providing sustainable, biodegradable packaging made from mycelium.
7. Health and Wellness (11% of Startups)
Health and wellness have become a major focus in the CPG industry trend, as consumers are more mindful of their well-being and are demanding products that promote healthier lifestyles. This shift is driving innovation in areas such as functional foods, mental wellness platforms, and personalized health solutions.
The technologies driving change
- AI-powered health platforms are helping companies analyze user health data and offer personalized product recommendations. These platforms can track wellness metrics, suggest dietary adjustments, or provide custom supplements based on user data.
- At-home diagnostic tools are on the rise, allowing consumers to monitor their health and receive insights from the comfort of their homes. This includes advancements in blood testing kits, genetic analysis, and wearable health tech.
- Functional foods that combine nutrition with health benefits are becoming more popular. These foods are designed to improve everything from gut health to cognitive function, often leveraging natural ingredients and supplements.
The relevant startups in the industry
Startups like Thriva are making waves with at-home blood testing kits that provide consumers with insights into their health, while Zenklub offers platforms for mental and emotional well-being, connecting users with therapists and wellness coaches.
Better Startups, More Technologies, and Instant Access to Innovation. It’s All in Here.
SwitchPitch – The Only Startup Scouting Tool Built for Innovation Teams
The future brought by the upcoming consumer packaged goods industry trends is clear: technology is driving innovation faster than ever. But simply knowing the CPG trends isn’t enough — what matters is how quickly you can act on them.
Instead of looking for a one-size-fits-all solution, consider collaborating with startups across multiple areas of your business. For example, pairing a supply chain startup with an AI-driven marketing platform can amplify results and offer a holistic innovation approach.
But discovering such areas of innovation and forming the right partnerships is a different game entirely, one which can make or break your business. Fortunately, with platforms like SwitchPitch, you can discover, analyze, scout, and form the innovation partnerships that will fuel your next leap forward.
Don’t believe us? Request a demo and see how leading CPG companies are already leveraging SwitchPitch to outsource their innovation initiatives.
