Rockwell Automation Report Finds CPG Industry Prioritizing Innovation Over Cost-Cutting

Research shows CPG leaders are investing in AI and talent to stay competitive

Rockwell Automation, Inc., the world’s largest company dedicated to industrial automation and digital transformation, announced the results of the 10th annual State of Smart Manufacturing Report: Consumer Packaged Goods (CPG) Edition. The findings highlight how manufacturers are placing greater importance on innovation, workforce development, and long-term growth strategies.

The CPG industry is facing pressure on multiple fronts, from the growth of store brands to the demand for faster innovation and more sustainable products. At the same time, consumer loyalty is harder to earn, and expectations for customization and transparency are rising. In response to this, CPG companies are moving away from small-scale technology pilots and investing in solutions that deliver measurable results across the organization.

The combination of workforce training, better use of data, and more adaptable systems is helping these manufacturers stay competitive while managing complexity. And as private-label brands expand and consumer expectations evolve, CPG leaders are prioritizing investments that help them compete more effectively in a crowded and fast-changing market.

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Notable Key Trends from 2024 to 2025:

Rising Competition Leads Industry Concerns:

In 2024, economic uncertainty and inflation were main challenges noted in our annual survey. In 2025, competition has taken the lead, driven by increased market pressure from private-label products and changing consumer buying habits.

Technology Needs to Work for People:

Companies are focusing less on simply adopting new tools and more on making sure new technology fits their teams and operations. Usability and scalability are now critical factors in technological decisions. Capabilities CPG leaders are looking for in their workforce include: communications/teamwork (86%), adaptability/flexibility (85%), while analytical thinking and cybersecurity practices are tied (84%).

AI and Robotics Lead Investment Priorities:

At the heart of technology investment decisions is a shift in thinking. 70% of CPG manufacturers say they are investing in AI, robotics, and simulation technologies for long-term business growth. This is a shift from last year when technology supported more sales analytics and process optimization.

More companies are using data effectively

The number of manufacturers who say they are using their data to guide decision-making is up from 40% in 2024 to 44% in 2025. AI is playing a growing role in data utilization in key areas like quality control, logistics, and cybersecurity, scoring 5% above the general average.

Workforce strategies are evolving

While 2024 emphasized attracting skilled labor, the 2025 report shows 34% of manufacturers are concentrating more on training current employees on updated processes, while 33% of the focus is on managing change effectively and improving employee retention.

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“CPG manufacturers are no longer just reacting to disruption—they’re proactively investing in technologies that deliver sustainable growth and competitive advantage,” said Steve Deitzer, vice president, Global Industry, CPG, Rockwell Automation. “This year’s report shows a clear pivot toward long-term thinking, where AI, automation, and workforce enablement are central to success.”

Scalability and integration are now central to how CPG leaders approach growth. By aligning technology, people and processes, companies are working to build more agile and efficient operations that can keep up with market changes.