Contents Last year, inState of Consumer Products Report:Foreword Reclaiming Relevance, we argued that ConsumerProducts companies needed to reassert theirrelevance with consumers, retail customers andcapital markets. That challenge remains, but the The leadership opportunity is not simply to improve individualfunctions, but to redesign the operating model that connects them.The promise of technology in this is clear: AI can transform how it across their commercial model, not within isolateduse cases. Retailers are becoming platforms. Signals move faster, interactin more complex ways and influence purchase outcomes before consumers actively choose. In this environment, advantagedepends less on any single decision and more on how decisionsconnect across the business. demand signals and supply responses are aligned in real time.That is what enables relevance to be earned continuously. It’s howto ensure your brands are not just visible, but selected, in themoments that matter. made across those functions — how pricing, promotion, media andsupply choices come together — was designed for a different era.The next phase of transformation can’t be incremental, but Products. The companies that succeed will be those that recognizethis shift early — and move with clarity and intent. We hope thisreport helps you take the necessary steps, and we look forward toworking with you as you shape the future with confidence. decisions are made, how trade-offs are governed, and howdemand creation and fulfillment are aligned in practice.This is why we’re publishing two companion pieces this year: one demand and supply operate as one set of connected decisions ratherthan as separate functional priorities. Rob HolstonEY Global and EY Americas Consumer Products Sector Leader INTRODUCTION Sales and marketing remain the growth engine of Consumer Products (CP).This is where brands live or die, where decisions directly translate into growth,margin and value. But the industry is entering a new phase of competition,where demand is increasingly shaped by algorithms, platforms and agent-led it’s already here. Mainstreamretailers already have toolsthat guide, educate and makedecisions for the shopper. relevance with consumers, retailers and capital markets.Today, a fourth arena of relevance is emerging. Increasingly,decisions about what gets bought, recommended andprioritized are shaped upstream by algorithms, platforms and and Personal Care (HPC) Chief Customer Officer. “I giveit less than two years for the big players,” she said.“This is moving very fast.” implication is not simply opportunity. It is exposure. In asector already facing low growth and persistent volumepressure, even small shifts in how demand is allocatedare significant. effect are harder to isolate; signals travel faster; and demandis shaped through less predictable interactions rather than astable, sequential path. whatever decisions are taken elsewhere,” said a Food Headof Sales. “Agents are increasingly interacting directly withthe consumer … and starting to shape how brands showup, rather than companies controlling it themselves,” said not control.Those platforms and agents do not respond to campaigns pricing, availability and consumer feedback — all shaped byhow pricing, promotion, media and supply are executed.This shift is underway. retailers already have tools that guide, educate and makedecisions for the shopper,” said a Food Head of Sales. One CP Chief Customer Officer we interviewed predicted that by2030, 80% to 90% of negotiation could be done through AIagents, adding: “We need to be ready for that.” Building a world-class brand in an AI world Karen Crum, Strategy PartnerLaurence Buchanan, EY Studio+ Global Leader has been built around communications andactivation, not system governance. Yet therequirement now is to orchestrate alignmentacross functions, ensuring that brand strategy,product offering and customer experiencereinforce each other consistently to protectand grow brand as a financial asset. This alsochanges the role of the CFO. Brand can no interpreted and chosen, it is exposing andamplifying a structural flaw in how mostorganizations manage brand. Brand has beentreated as a marketing output, owned in silosand optimized through campaigns. In reality, compete in this environment.Our research shows thatcompanies are continuing to invest in pricing, promotion,media and portfolio optimization within disconnected insight and action. It risks being toxic for CP companies, and the longer transformation is avoided, the more damage it does. Thisis not just a capability issue. It is a structural disconnectbetween time horizons, incentives and decision rights, more visible. In an AI-driven environment,brand is no longer what you say. It is whatthe system reveals. But the system is notlinear or deterministic. Brand behaves muchmore like biology than chemistry: shaped bymultiple interacting signals that accumulateover time. Every si