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Rockwell automation report finds CPG industry prioritizing innovation over cost-cutting

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

The CPG industry faces 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, CPG companies are moving away from small-scale technology pilots and investing in solutions that deliver measurable results across the organization. 

Dilip Sawhney, managing director of Rockwell Automation India, expressed his views: “India’s CPG industry is undergoing a massive transformation, as manufacturers increasingly adopt smart technologies to stay closely connected with consumers, drive innovation, and march towards sustainability.”

“At Rockwell Automation, we are committed to empowering Indian manufacturers with scalable, AI-driven automation solutions and workforce enablement strategies. Our intuitive technologies drive agility, enhance quality, and build resilience, leading the industry into the future of work,” added Dilip.

The combination of workforce training, better data use, and more adaptable systems is helping these manufacturers stay competitive while managing complexity. 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.

Notable key trends from 2024 to 2025:

Rising competition leads to industry concerns:

Our annual survey noted economic uncertainty and inflation as the main challenges in 2024. 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 focus less on adopting new tools and more on ensuring 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 growing 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 that 34% of manufacturers are concentrating more on training current employees on updated processes, while 33% are focusing on managing change effectively and improving employee retention.

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. 

The 2025 State of Smart Manufacturing Report, based on insights from 174 CPG leaders across 15 countries, including India, is part of Rockwell Automation’s broader global research initiative, which surveyed over 1,500 manufacturing decision-makers.

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