Consumer products (CP) companies are investing heavily in transformation with 94% of supply chain executives saying they are transforming the function. The next opportunity is to embed that progress in day-to-day operations so companies can make faster, more coordinated decisions and capture increasingly fragmented growth opportunities, according to the latest EY State of Consumer Products report.

The EY organization, in collaboration with Oxford Economics, surveyed more than 850 senior executives across 24 markets, with the research revealing that consumer leaders have an opportunity to translate technology investment and greater visibility of demand and supply signals into faster, coordinated action.

Growth opportunities are increasingly emerging in smaller, faster and harder-to-serve demand pools. Companies that strengthen their ability to calculate the value in complexity and make the right portfolio trade-offs will be better positioned to capture them. Currently, 27% of supply chain executive respondents are highly confident in this capability, highlighting the scope to build on existing transformation efforts and turn market signals into coordinated action.

Lokesh Ohri, EY Americas Consumer Products Sector Leader, says:

"For consumer products companies, AI, retailer ecosystems and shifting consumer behaviors are fundamentally changing how growth is created and captured. Demand signals are emerging faster, competition from private label and challenger brands is intensifying, and the path to purchase is influenced by digital platforms and algorithms. While many organizations are investing in new products, channels and capabilities, technology alone will not create a competitive advantage. To compete, companies will need to cut through complexity by redesigning operating models, breaking down silos and increasing speed across functions."

Technology and AI investment create an opportunity to accelerate agility

The survey shows strong momentum: 94% of supply chain executives say they are transforming the supply chain function. The opportunity is now to embed that transformation into day-to-day operations, which only 9% say they have achieved. Greater adoption could help more companies improve speed from signal to execution and alignment across supply chain, commercial and finance functions; currently 20% and 10%, respectively, report significant improvement in these areas.

Meanwhile, 71% of companies surveyed are now operating with Integrated Business Planning (IBP), providing a strong foundation for coordinated decision-making. The next opportunity is to turn those plans into action more quickly, as only 14% of respondents strongly agree that decisions are ultimately acted upon fast, while 8% say IBP enables real-time, signal-driven replanning, and 6% say suppliers can receive, interpret and act on demand and supply signals close to real time.

According to the report, 73% of CP CEO respondents say planned AI investment for 2026 has increased compared with 2025, raising the stakes of slow decision making and operational transformation. Rather than being used to improve legacy processes and functions, AI can help redesign the flow of information throughout organizations by detecting shifts in demand earlier, generating recommendations and accelerating decision-making. But without a clear decision-making structure, integrated teams and the ability to adjust operations quickly, AI may expose organizational bottlenecks rather than eliminate them.

That gap is already emerging: 37% of CP CEOs say AI is delivering measurable impact in supply chain and procurement, yet only 12% say AI impact is linked to financial reporting and regularly reviewed by senior management. The next competitive divide may therefore be about who has the operating model to turn AI-driven insight into action rather than who has the best technology.

Umar Alizai, EY Americas Supply Chain & Operations Leader, adds:

"Many supply chains were designed for a different era of growth, one defined by scale, efficiency and predictability. Today, growth opportunities are becoming more fragmented and complex, but the physical networks and assets serving it haven't changed at the same pace. Companies that understand where responsiveness creates value, and adapt their networks and operating models, accordingly, will be better positioned to capture that growth while maintaining discipline on cost and service."

The digital shelf is redefining supply chain advantage

AI agents, retailer algorithms and digital platforms increasingly mediate product discovery. What happens behind the scenes – like availability, fulfillment reliability and substitution risk – is coming to the forefront, shaping what consumers see, what is recommended to them and, ultimately, what they have access to.

The report finds that 86% of CP CEO respondents agree that competitive advantage will increasingly depend on clear, provable consumer superiority and value rather than brand scale alone.

Supply chain now has a new role in CP growth. The report indicates the relationship between commercial teams and the supply chain is becoming more connected, with supply chain executives increasingly needing a voice in which growth opportunities the company pursues, not merely how to fulfill them afterward.

For the full analysis, data and recommendations, read the complete EY State of Consumer Products report.