Why Private Brand Food Retailers and Manufacturers Lead in Artificial Intelligence Adoption

Private brand companies, both food retailers and manufacturers, are early adopters of artificial intelligence (AI) tools to enhance research, marketing, and operational efficiency.

By: Tom Cosgrove, Director, Industry Relations, FMI

I’m an Artificial Intelligence (AI) dabbler. I use it to help with writing projects and emails, and I often leverage FMIResearch.ai to look up insights from our research & insights reports, but I’m not an AI power user. Given my experience and what I hear from colleagues, I am inspired by a recent finding in The Power of Private Brands 2026: Shopper in a grocery store aisle that is created with illustrations looking at products.Industry Strategies to Build on Success. According to survey results from private brand professionals in the food industry, private brand companies are making considerable use of AI to address a range of business needs.

What are Private Brand Companies Using AI For?

It is exciting to see the scope of activities that private brand companies are using AI for. At the top of the list is research, with 64% of food retailers and manufacturers using AI for this purpose. Other uses of AI among private brand companies include efficiency (50%), marketing/advertising (44%) and product development (36%).

Are Food Retailers or Manufacturers Using AI More?

In some areas, food manufacturers are using AI more, while in other areas, food retailers are leveraging AI at higher rates. For example, manufacturers are ahead of retailers in using AI for research, efficiency, product development and supply chain. Food retailers, on the other hand, lead in uses for marketing/advertising, price optimization and agentic commerce.

Why Might Private Brand Companies and Professionals Be Early Adopters of AI?

Private brand companies and professionals seek to provide value to shoppers beyond price while remaining conscious of cost. Many of these companies and professionals are masters of doing more with less. AI can often be a powerful tool for creating mockup packaging, developing marketing campaigns, researching future flavor trends, or even optimizing transportation routes for efficiency. In many ways, it makes perfect sense for private-brand companies to seek to streamline and increase efficiency to provide shoppers with greater value, and AI often offers a means to do so.

Conclusion

As private brand companies continue exploring AI, it is important to remember that these tools are most effective when paired with human judgment, experience and creativity. AI can help employees work more efficiently, spark new ideas and strengthen decision-making, but it should support, not replace, the expertise of the people who understand shoppers, products and the food industry best. That balance will be especially important as companies determine where AI can add the greatest value across the organization. I am looking forward to hearing how Private Brands Leadership Council members are already using AI and where they see the biggest opportunities ahead at the Fall Summit this week.

Download Power of Private Brands 2026: Industry Strategies

FAQs on The Power of Private Brands 2026: Industry Strategies to Build on Success Report

 What is The Power of Private Brands 2026: Industry Strategies to Build on Success report?

The Power of Private Brands 2026: Industry Strategies report surveys private brands professionals in the food industry annually about their business strategies and operations to support companies in fine-tuning their strategies, identifying additional opportunities and planning new investments.

What are the key findings from The Power of Private Brands 2026: Industry Strategies?

The Power of Private Brands 2026: Industry Strategies report finds the food retail private brands industry faces multiple challenges — ranging from competition to economic impacts. However, food retailers and suppliers are enhancing their connections to shoppers, expanding product assortments and benefitting from technology.

According to The Power of Private Brands 2026: Industry Strategies what is ahead for the private brands food industry?

According to The Power of Private Brands 2026: Industry Strategies, food retailers and suppliers express considerable optimism about private brands for the coming year, but recognize ongoing imperatives related to pricing, consumer loyalty, investments and supply.