A new IMD study reveals why only 5 out of 26 CPG giants are future-ready—and what it means for the next era of leadership. – By New York Business Leadership Center & Hillier Consulting
IMD study: The future of CPG: Opportunity is on the horizon
“The Consumer-Packaged Goods (CPG) sector faces a dynamic and challenging landscape. Inflation is easing, but it still drives value-conscious, price-sensitive consumer behavior. Meanwhile, demands for personalization, better experiences, health, wellness, and sustainability are rising.
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What can be learnt from the leaders, such as L’Oréal, which once again leads the Future Readiness Indicator 2025?
- The standout companies – including L’Oréal, Coca-Cola, Nestlé, Procter & Gamble (P&G), Unilever, and others – are not necessarily the largest by revenue, but they excel at anticipating trends, innovating, and adapting ahead of their peers.
- The 2025 leaders also show how consistent investment in innovation, data, and talent turns uncertainty into advantage.
- L’Oréal’s focus on technological innovation to meet modern consumer needs sees it maintain its top spot as the #1 future-ready CPG company.
- Coca-Cola, in second place, shows how its investment in AI-driven insights to fine-tune its supply chain has delivered – as has its culture of evidence-based decision-making and broken-down silos.
In a world where product cycles are accelerating and consumer behaviors shift with a single swipe, the ability to act on real-time data has become the ultimate competitive advantage.”
A recent study by the IMD Center for Future Readiness, led by LEGO Professor of Management and Innovation Howard Yu, reveals a stark divide in the consumer packaged goods (CPG) sector: only 5 of the 26 largest CPG firms are executing meaningful AI strategies at scale.
The rest are watching the future unfold from the sidelines.
The Standouts: From Beauty to Beverages
L’Oréal, ranked #1, has transformed into a data-powered innovation machine.
By allocating 3.5% of its sales to R&D and embedding AI into product design, it rapidly converts TikTok and Instagram trends into salon-ready products within weeks.
What once took quarters now takes days.
Coca-Cola, #2 on the list, has turned AI into a company-wide utility. With every manager able to access demand forecasting tools, the brand not only identified but anticipated the hard seltzer wave, launching Topo Chico nationwide while competitors were still scheduling meetings.
“These companies aren’t just adapting to change; they’re engineering it,” says Yu. “They’ve turned their organizations into prediction engines.”
The Bottom Dwellers: Paralysis by Analysis
At the other end, companies like Kraft Heinz are still operating on legacy cycles, taking months to tweak a formula. Instead of leveraging AI to detect demand shifts, they rely on lagging indicators and defensive strategies.
The Future-Ready Framework: What the Best Get Right
- 1) From Experiment to Execution
- 2) Forecast or Fade
- 3) Mine the Clicks, Master the Market
- 4) Reinvent Before You’re Replaced
- 5) Purpose is the New Premium
From Howard Yu: The WINNER’S Framework:
1. AI at scale, not in pilots
Winners integrate into workflows. Losers run demos.
2. Supply chains that anticipate
Real-time visibility + AI forecasting = competitive firepower
3. D2C as intelligence goldmine
73% use multiple channels. Mine every interaction.
4. Disrupt yourself first
Coca-Cola launched Costa Coffee, hard seltzers. Grew. Kraft Heinz protected legacy brands. Shrank.
5. Sustainable without premium
Gen-Z spending hits $12T by 2030. They demand action at everyday prices.
6 Strategic Recommendations from New York Business Leadership Center and Hillier Consulting:
- Create a Real-Time Intelligence Hub – Decisions Need a Pulse.
- Embed AI in Leadership Training – Teach the Future to Those Who’ll Lead It.
- Make Trend Prediction a Core KPI – Track Trends, Trigger Growth.
- Shorten Product Development Cycles – Speed Wins. Always.
- Gamify Consumer Feedback Loops – Engage to Evolve.
- Turn D2C Into an Innovation Sandbox – Test Small. Scale Fast.
In the AI era, the line between tech company and CPG brand is blurring.
The winners won’t be the ones who respond to change; they’ll be the ones who predict it.
Your next breakthrough isn’t in the boardroom. It’s in your algorithm.
