AI Accelerates FMCG Innovation
Global fast-moving consumer goods (FMCG) companies are increasingly adopting artificial intelligence (AI) to develop new products, reduce manufacturing costs, and create innovative formulations. From French cosmetics giant L'Oréal to Mondelez International, the maker of Cadbury and Oreo, AI is driving a major transformation in product development.
Speaking to Reuters, Fabrice Megarbane, President of L'Oréal's Consumer Products Division, said the company has successfully used AI to identify how molecules originally developed for skincare products can be applied to shampoos. As a result, L'Oréal is now able to develop new product formulations four times faster than before.
L'Oréal is not alone in embracing AI. Global industry leaders such as Nestlé, owner of Nescafé; Haleon, manufacturer of Sensodyne toothpaste; and Mondelez International are all leveraging AI to accelerate product innovation. The technology enables them to evaluate ingredient performance more rapidly, generate new recipe concepts, and overcome supply chain challenges more effectively.
Speaking at the Consumer Goods Forum Global Summit in Vienna in late June, Megarbane said, "By predicting new molecular combinations and their effectiveness through AI, we are able to bring products to market much faster."
One of L'Oréal's recent breakthroughs involves incorporating collagen molecules, traditionally used in skincare products, into shampoo formulations to enhance hair lift and fullness. Following a slowdown in sales growth, the company's Chief Executive Officer Nicolas Hieronimus launched a dedicated "Beauty Stimulus Plan" last year to accelerate innovation, with AI serving as one of its central tools.
Meanwhile, Filippo Catalano, Chief Information and Digital Officer at Mondelez International, told Reuters, "The combination of human intelligence and AI is a game-changer for us."
The company, which owns renowned chocolate brands such as Cadbury and Toblerone, said its AI platform can generate entirely new and unconventional recipe ideas, which are then evaluated and refined by human experts. Using this technology, Mondelez has already developed Gluten Free Golden Oreo cookies and an improved recipe for Chips Ahoy! cookies. According to the company, nearly 60 percent of AI-generated recipes in its biscuit category have proven superior to conventional formulations in terms of nutrition, sustainability, and cost efficiency.
Catalano added, "AI has fundamentally multiplied the speed of our work. Formulations that previously took months or even years to develop can now be completed within just weeks or months thanks to AI."
//DBTech/BMT/OR//
