The Algorithm Knows What You Want Before You Do
How predictive personalization is reshaping CPG product development
Digital transformation has proved to be a leading differentiator for many organizations. However, CPG brands lag somewhat behind the rest of the market: according to Deloitte, "On average, CPG companies have reported an 8 percent increase in technology budgets over the past three years." This technological lag isn't just about efficiency—it's about survival in an era where consumer preferences shift faster than quarterly earnings calls.
The most innovative CPG companies are now deploying AI not just for demand forecasting, but for desire prediction. Using aggregated purchase data, social media sentiment, and even weather patterns, they're developing products for needs consumers haven't yet articulated. Consumers worldwide are expected to spend $3.2 trillion more in 2025, which is nearly 6% growth from 2024 alone.
But here's the twist: the real competitive advantage isn't in predicting what people want—it's in influencing what they'll want next. Leading brands are using AI to identify "preference formation moments"—those split seconds when consumer tastes are most malleable. They're then positioning their products to be discovered at precisely those moments.
The implications are staggering. We're moving toward a world where successful CPG brands don't just respond to market demand—they actively create it through strategic digital interventions. The companies investing in this capability now will own entire categories by 2027.
Sources:
Envestnet Yodlee CPG Trends Analysis 2024
Shopify CPG Trends Report 2025
McKinsey CPG Industry Insights 2024