Business

Revolutionising the CPG industry: how agentic AI and connected commerce drive 2026 transformation

Monday, 1 December 2025 4:17PM UTC

As the consumer packaged goods sector approaches 2026, technological advancements like agentic AI, advanced analytics, and smart supply chains are reshaping its future, blending innovation with sustainability to unlock unprecedented growth opportunities.

As the consumer packaged goods (CPG) industry approaches 2026, technology is not just modernising the sector but fundamentally reinventing it. Kellanova’s Global Chief Digital & Information Officer, Lesley Salmon, outlines five pivotal tech trends that are set to transform the CPG landscape, highlighting how her company is leveraging digital advances as a catalyst for growth. Central to this transformation is the integration of artificial intelligence (AI), advanced analytics, connected commerce, smart supply chains, and sustainable technology.

One of the most groundbreaking shifts is the rise of agentic AI, intelligent systems capable of analysing data in real time, making recommendations, and even executing actions autonomously without direct human input. This advancement is streamlining repetitive tasks, enabling faster decision-making and operational efficiency, and freeing employees to focus on strategic initiatives. Ramesh Kollepara, Kellanova’s Chief Technology Officer, emphasises that agentic AI fuels supply chain management, demand forecasting, inventory control, and personalisation efforts, enhancing responsiveness and precision. Independent analyses from industry experts, such as WNS and Tech Mahindra, reinforce this perspective, illustrating how agentic AI is transforming back-office operations into strategic growth engines. These systems offer real-time orchestration in finance, supply chain, and pricing, as well as proactive management of stock levels and partnership engagement, redefining enterprise agility in CPG.

Alongside AI, advanced analytics is unlocking deeper consumer insights by harnessing growing volumes of data from digital touchpoints. At Kellanova, sophisticated tools like the ‘RGM Navigator’ leverage trusted data products and AI/machine learning models to optimise pricing and promotion strategies, resulting in tangible improvements such as a 91% increase in salty snack promotion effectiveness between 2024 and 2025. Loretta Franks, Chief Data & Advanced Analytics Officer, highlights that these data-driven approaches enable sharper market segmentation, smarter campaigns, and stronger returns on marketing investments. McKinsey’s research echoes these findings, noting that the retail sector stands to gain billions in incremental value from AI-powered commercial use cases like assortment planning, pricing, and promotions, potentially boosting earnings before interest and taxes by up to two percentage points. However, McKinsey also points out a crucial gap: while AI adoption is growing rapidly among CPG companies, with 71% embedding AI in at least one function as of 2024, few have fully scaled their AI capabilities, and generative AI uptake remains slower compared to other industries. This underscores an industry-wide imperative to accelerate AI integration to sustain competitive advantage.

The concept of connected commerce, or “phygital” experiences, is another dimension reimagining consumer interaction by merging physical and digital retail environments seamlessly. Charisse Hughes, Kellanova’s Chief Growth Officer, notes that the future lies in ecosystems where traditional in-store shopping integrates with interactive, data-driven digital elements, enhancing convenience and customer engagement virtually and physically. This approach aligns with broader industry movements prioritising omni-channel retail experiences designed around consumer ease and continuity.

Supply chains are also becoming smarter and more transparent through digital intelligence. IoT sensors, predictive analytics, and blockchain technologies empower companies to anticipate disruptions, improve transparency, and increase resilience, qualities critical in today’s unpredictably shifting markets. Rodrigo Lance, Senior Vice President of Kellanova’s Global Supply Chain, stresses that smart supply chains can foster consumer trust through traceability, verifiable sustainability claims, and informed buying decisions.

Sustainability sits at the intersection of technology innovation and environmental stewardship. Kellanova is embedding digital sustainability throughout its innovation pipeline, from optimising manufacturing energy use to applying AI in food and packaging design for more sustainable materials. David Lestage, Chief R&D Officer, advocates a view that environmental benefits and business performance go hand in hand. Tools like digital product passports and carbon-tracking software bring transparency to sustainability efforts, resonating with consumers who increasingly prioritise brand values alongside product quality.

Ultimately, the CPG industry’s next era is defined by the fusion of human creativity and digital prowess. Lesley Salmon highlights that technology alone does not drive transformation, people do. By harnessing data, AI, and technology with human insight, companies like Kellanova aim to convert raw information into meaningful impact, fostering innovation, inclusivity, and sustainability. As the industry stands on the brink of this digitally charged chapter, the leaders will be those who connect not just systems, but people, creating better days for consumers and society alike.

📌 Reference Map:

^[1] (Kellanova PRNewswire) - Paragraphs 1, 2, 3, 4, 5, 6, 7, 8
^[5] (WNS) - Paragraph 3
^[6] (Tech Mahindra) - Paragraph 3
^[7] (Tredence) - Paragraph 3
^[2] (McKinsey) - Paragraph 4
^[3] (McKinsey) - Paragraph 5
^[4] (McKinsey) - Paragraph 5

Source: Noah Wire Services

More on this

https://aijourn.com/the-top-5-cpg-tech-trends-shaping-2026/ - Please view link - unable to able to access data
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/fortune-or-fiction-the-real-value-of-a-digital-and-ai-transformation-in-cpg - McKinsey's analysis quantifies the impact of digital and AI transformations in the consumer packaged goods (CPG) sector. A 2024 survey revealed that 71% of CPG leaders had adopted AI in at least one business function, up from 42% in 2023. Despite this growth, no CPG company has fully scaled its AI capabilities, with generative AI adoption lagging behind other industries. The report underscores the need for CPG companies to accelerate AI integration to remain competitive.
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/applying-advanced-analytics-in-consumer-companies - McKinsey discusses the significance of advanced analytics in the consumer goods industry. A case study highlights a CPG company's effort to assess marketing-spend ROI, revealing discrepancies between external and internal models due to data grouping errors. The article emphasizes the importance of transparent models and effective data-driven actions to achieve substantial rewards in the CPG sector.
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/how-advanced-analytics-can-fuel-growth - McKinsey explores how advanced analytics can drive growth in the retail industry. The McKinsey Global Institute estimated the potential annual value of artificial intelligence for the retail industry at $400 billion to $800 billion globally. For grocery retail specifically, implementing all use cases could lead to an incremental increase in earnings before interest and taxes (EBIT) of up to two percentage points, primarily driven by commercial use cases like assortment, pricing, promotions, and personalization.
https://www.wns.com/perspectives/articles/agentic-ai-in-cpg-turning-the-back-office-into-the-frontline - WNS discusses how agentic AI is transforming the back office in CPG companies into a strategic growth engine. By embedding intelligence into finance, operations, and supply chain workflows, CPG companies can achieve real-time orchestration, predict demand, re-route supply chains, adjust pricing, and personalize engagement with unprecedented precision. The article highlights the potential of agentic AI to redefine enterprise operations and foster innovation at scale.
https://www.techmahindra.com/insights/views/agentic-ai-retail-and-cpg/ - Tech Mahindra examines the role of agentic AI in the retail and CPG sectors. Unlike traditional AI tools, agentic AI is proactive and designed to manage complex, multi-step tasks with minimal human intervention. The article provides an example of a retailer instructing the AI to ensure shelves have desired products, where the system not only alerts to low stock but also triggers replenishment actions, analyzes sales history, predicts demand, and places orders, keeping stakeholders informed with prioritized updates.
https://www.tredence.com/blog/ai-agents-cpg - Tredence explores how agentic AI is transforming core functions in the CPG industry. The article discusses applications in sales, inventory management, and production optimization. For instance, AI agents can monitor sales targets, engage with distributors and retailers to address underachievement, and manage inventory by analyzing real-time data to forecast quantities needed across locations, proactively reaching out to partners to replenish stock efficiently and accurately, minimizing disruptions and maintaining healthy profit margins.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is a recent press release dated December 1, 2025, issued by Kellanova's Global Chief Digital & Information Officer, Lesley Salmon, highlighting emerging technology trends in the consumer packaged goods (CPG) industry. As a press release, it is expected to be fresh and original, providing timely insights into the company's strategic focus for 2026.

Quotes check

Score: 10

Notes: The direct quotes from Lesley Salmon and Ramesh Kollepara are unique to this press release, with no prior online matches found. This suggests the content is original and exclusive to this release.

Source reliability

Score: 10

Notes: The narrative originates from Kellanova, a reputable company in the CPG sector, and is disseminated through PR Newswire, a well-established press release distribution service. This indicates a high level of reliability and authenticity.

Plausability check

Score: 10

Notes: The claims about technological advancements such as agentic AI, advanced analytics, connected commerce, smart supply chains, and sustainable technology are consistent with current industry trends and are supported by reputable sources. The narrative aligns with broader discussions on digital transformation in the CPG industry.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The press release from Kellanova, dated December 1, 2025, presents original and timely insights into the company's strategic focus for 2026. The content is fresh, with unique quotes and a reliable source, and the claims made are plausible and supported by current industry trends.

CPG industry
Digital transformation
Agentic AI
Connected commerce
Sustainable technology