If you’re still on the fence about using AI in your organization, major CPGs have already made the investment and have proven it’s well worth it. In 2025, the most competitive consumer brands aren’t chasing social media trends, but rather, they’re creating them using artificial intelligence. CPGs do it through three key moves: full-stack AI adoption, a bold return to real-world experiences, and a shift from performance marketing to value-driven loyalty.
Here’s how the smartest players in the CPG space are winning shelf space, digital conversions and customer loyalty all at once.
1. AI Is No Longer Optional, It’s the Baseline
Across the board, artificial intelligence is proving itself not as a trend, but as the new foundation of modern brand operations. L’Oréal’s usage of Google AI tools to generate content in days instead of weeks is just one example of this internal shift happening in CPGs. Other examples include Mars using AI to analyze dogs' teeth and (yes) feces, while Danone is reengineering their product launches based on consumer behavior patterns mined over seven years.
What’s happening here isn’t just automation for the sake of efficiency, but instead strategic growth. The CPG brands pulling ahead are those using AI to compress timelines, customize outputs, and predict consumer behavior with precision. Even internal culture is shifting: Danone is training its analysts to think like data scientists, and P&G’s joint study with Harvard shows AI-powered teams operate 12% faster and collaborate more effectively.
The market edge? Brands that embed AI into both backend systems and creative outputs are outpacing competitors not by mere steps, but by miles.
2. In-Person Experiences Set Brands Apart
In a digital-first world, it turns out the best way to stand out might be a return to analog. CPG brands and retailers are waking up to the power of physical space, especially when layered with modern technology. Albertsons’ new in-store digital display network is a prime example, placing massive screens in key traffic zones to serve up targeted promotions and real-time meal inspiration. It’s the perfect blend of media and merchandising, and it’s providing great measurable success. The operative word here is seamlessness: shoppers want the discovery of in-person browsing with the added convenience of digital nudges.
The trend extends to brand activations. Alcohol brands are creating immersive festival experiences with socially friendly, gamified lounges. JCPenney is even testing out-of-home ads with a cheeky tone to get people back into stores. Retail may have gotten quieter post-pandemic, but make no mistake: the physical aisle is the new scroll, and CPG brands that activate both are earning double the engagement.
3. Loyalty is No Longer About Points but Behavior
AI isn’t just changing operations, but reinventing how brands talk to and retain customers. The most forward-thinking CPG companies are tossing traditional loyalty frameworks in favor of real-time, behavior-based rewards. Whether it’s AI-generated personalized offers or gamified in-store challenges, the new loyalty landscape is contextual, emotional, and fun.
Programs like Greenies' AI dental check or gamified offers that reward repeat purchases aren’t gimmicks but attempts to build brand intimacy at scale. The brands that win loyalty today are the ones anticipating behavior before the consumer even acts. The result? Higher retention, stronger customer loyalty, and relevance that can’t be bought through discounts alone.
4. Retail Media is Changing Fast and So Are the Expectations
Retail media networks exploded in popularity over the past few years, but now the conversation is shifting from excitement to execution. Brands are demanding more flexible, performance-based partnerships that can pivot with tariffs, supply chain shifts, or shopper sentiment.
With retail media networks now considered as effective (or more) than traditional digital ads, brands are pushing for real-time measurement, audience insights, and campaigns that deliver ROI beyond impressions. It’s not about being everywhere, it’s about being in the right place, with the right offer, at the right time.
The Key Takeaway
The CPG space is undergoing a transformation that favors agility, automation, and the usage of artificial intelligence. Agencies and internal teams that can operate across digital and physical domains, integrate predictive technology, and rethink loyalty as a dynamic relationship, not a transaction, will have the sharpest edge.
In 2025, the question isn’t whether you’re keeping up, it’s whether you’re taking the lead. Because if AI is rewriting the rules, and omnichannel is the new baseline, brands that cling to old playbooks may not make it past the next shelf reset.