This report identifies key demand-side trends in the consumer packaged goods (CPG) industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the industry based on Avasant’s assessment.

Why read this Market Insights?

CPG enterprises are redesigning their operating models around AI-first intelligence to optimize portfolios, automate decisions, and modernize production. They are recalibrating their global supply bases in response to tariff volatility, using digital twins, AI, and predictive analytics to diversify sourcing and strengthen resilience. To protect margins, firms are reshaping go-to-market strategies, scaling retail media, and reallocating spend to high-ROI channels. Manufacturing operations are shifting toward autonomous, predictive systems powered by IoT, robots, and AI maintenance. Real-time demand sensing is being adopted to mitigate stockouts, improve pricing, and prevent revenue leakage. Additionally, sustainability expectations are accelerating the adoption of circular packaging and low-footprint product models across the value chain.

The CPG Digital Services 2025–2026 Market Insights™ aids enterprises in this sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, analyst insights from primary and secondary research, and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages  6 -10)

• • Definition and scope of the CPG industry
  • CPG digital services: Value chain matrix​
  • Key drivers and enterprise response
  • Avasant recognizes 27 top-tier providers supporting the CPG industry in digital transformation

Demand-side trends (Pages 11–17)

• • Simplifying product portfolios and SKU assortments to reduce complexity and improve margin efficiency.
  • Tariff volatility is reshaping global sourcing footprints and forcing investments that bolster supply chains.
  • Reallocating marketing spend and channel investments to boost margins, capture first-party data, and strengthen customer ownership.
  • Increased demand for a better-quality product is leading to a shift toward an autonomous and predictive manufacturing model.
  • AI-driven demand sensing is transforming revenue planning by eliminating forecasting errors and preventing margin leakage across the CPG value chain.
  • Strengthening brand equity and ensuring compliance through circular, sustainable packaging choices.

Key contacts (Page 18)

Read the Research Byte based on this report. Please refer to Avasant’s CPG Digital Services 2025–2026 RadarView™ for  detailed insights on the service providers and supply-side trends.