Keychain Report Finds AI Adoption and Operational Investment Are Driving the Next Phase of Growth in CPG Manufacturing

Keychain's 2026 CPG Intelligence Report finds operational discipline, customer growth, and AI adoption are defining the industry's next leaders

NEW YORK, May 13, 2026 /PRNewswire/ -- Consumer packaged goods (CPG) manufacturers are taking a more measured approach to growth in 2026. New research from Keychain, the AI-powered manufacturing platform for the CPG industry, reveals that as economic pressures persist and costs continue to rise, companies are pulling back from aggressive expansion and focusing on strengthening their existing operations instead.

The 2026 CPG Intelligence Report, based on a survey of more than 1,000 U.S.-based CPG manufacturers, reveals an industry shift toward operational efficiency, customer growth, and technology-driven development.

Internal Investment is Outpacing External Expansion 
Manufacturers are taking a more disciplined approach to growth in 2026, prioritizing stability over rapid scaling. Rather than pursuing acquisitions or exits, many are investing in their existing operations: 52% plan to add new production lines, while 25% plan to open new facilities.

M&A activity remains subdued, reflecting a broader focus on building long-term value from within. That strategy is already paying off: Companies adding new production lines are 2.1x more likely to expect revenue growth of more than 20%, and those investing between $250,000 and $5 million in capital expenditures anticipate breakout growth at twice the rate of companies making no such investments.

Customer-Led Growth is Powering the Next Wave of Revenue
After a relatively modest 2025, when 21% of manufacturers saw revenue decline and only 15% achieved growth above 20%, the outlook has turned more optimistic, with companies focusing on winning new customers rather than external capital.

Customer acquisition is the clear priority across the industry, identified as a top growth strategy by 95.7% of private label expanders (PL) and 67% of non-expanders (Non-PL). To win new business, manufacturers are also leaning into:

• Partnerships and referrals (72% PL vs 45% Non-PL)
• Expanded capabilities (68% PL vs 39% Non-PL)
• Increased investment in sales and marketing (65.9% PL vs 48% Non-PL)

AI and Technology Adoption Are Becoming Competitive Necessities 
Technology investment is increasingly separating industry leaders from the rest of the market. More than half of manufacturers have an AI strategy in place: 12.3% have already deployed it, 18.4% are piloting it, and 22.1% are planning to implement it. This adoption is creating a significant gap: AI-enabled manufacturers are 2.6x more likely to expect revenue growth above 20% compared to those with no plans.

Software adoption is also emerging as a key differentiator. Manufacturers not using any operational software (30.4%) are more likely to see revenue decline than those using at least one tool (21.1%). Looking ahead, 59% of respondents are purchasing or considering new software in 2026, primarily to reduce errors (70%), cut costs (53%), and support compliance (46%).

A More Adaptive CPG Leader Is Emerging
The findings point to a new generation of CPG leaders defined less by scale and more by adaptability. Newer manufacturers are already outperforming legacy players, with companies operating for less than five years growing revenue above 20% at 3.6x the rate of those over 20 years old, proving that execution and flexibility matter more than tenure.

"Growth in CPG is being redefined, and AI is determining who can keep pace," said Oisin Hanrahan, CEO and Co-Founder of Keychain. "It's no longer just about how quickly manufacturers can scale. It's about how effectively they can innovate, adapt, and do more with the resources and systems they already have."

These shifts reveal a different model of growth, where operational agility and technology are becoming as important as organizational strength.

Methodology
Keychain conducted its 2026 CPG Intelligence Report to examine the strategies, challenges, and priorities shaping the U.S. manufacturing industry.

In Q1 over 20,000 verified U.S. CPG manufacturers were invited to participate in the Keychain report, with over 1,000 suppliers representing over 500 CPG categories choosing to share data. Respondents represented companies nationwide, with the highest response rates from California, Texas, New York, Illinois, and Ohio.

About Keychain
Keychain is an AI-powered platform for CPG manufacturing that works with brands and retailers to bring clarity and convenience to the process of creating products that consumers love. The company is backed by leading investment firms Lightspeed Venture Partners, BoxGroup, Wellington, SV Angel and industry leaders General Mills, The Hershey Company, Schreiber Foods, and Rich's Food. Keychain has built a network of over 30,000 manufacturers and over 20,000 brands and retailers. The company's proprietary, AI-powered platform helps brands quickly find the perfect manufacturing partners. Keychain is headquartered in New York, with offices in Austin, Delhi, and Ireland.

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SOURCE Keychain