Artificial intelligence (AI) is a science that makes machines such as computers and production machines think and act like humans. This revolutionizes manufacturing. Gitnux's Market Data 2024 report states that AI is expected to grow by 25 % per year in the confectionery industry over the next 5 years.
AI is playing a growing role in the strategies and operations of confectionery manufacturers and brands. It supports various aspects of the confectionery industry and enhances the consumer experience. AI can help meet business demands and satisfy buyers. It is used in marketing, formula innovation, customer service, supply chain management and automation.
The National Confectioners Association's 2024 State of the Industry Conference highlighted the importance of the industry. AI can be used to help businesses navigate the socio-economic environment, which includes rising commodity prices. AI is also capable of helping consumers: a recent Accenture study showed that almost half of consumers are open to using AI to choose confectionery. This was after they reported having difficulty choosing these products over regular grocery items.
Machine learning is disrupting the market in five other ways.
1. Innovative storytelling, personalization and generative becoming
AI powers many interactive and personalized campaigns from major confectionery brands. A bolder sister to AI, generative AI offers brands greater opportunities to engage with consumers and immerse them in their confectionery worlds.
Gen AI has a big role to play in content creation. ChatGPT is an algorithm that creates material such as writing, images, videos and audio. In 2022, Gen AI will be a major player. McKinsey research shows that in less than two years, the AI generation will be a major factor. Up to $4 trillion.Every year, the global economy adds 4.1 trillion euros.
Gen AI enables innovative and creative campaigns that allow brands to connect with their consumers. Content is tailored to consumers when brands produce personalized digital marketing across multiple platforms. Brands can use Generation AI to create content that reflects evolving brand narratives and engages consumers.
Starburst’s “Different Every Time” campaign launched in May. This campaign shows consumers 479,000,000 ways to enjoy an original Starburst in a 12-pack. This is the brand's most innovative campaign in over 12 years. It combines traditional marketing channels such as Television with gen AI and innovative initiatives such as using AR lenses on Snapchat or creating music experiences inspired by Spotify
Hershey launched its AI-powered campaign ahead of Halloween, one of the biggest sales seasons for Hershey. personalized algorithm to feed its media algorithms with sales data. Hershey combined AI and increased ad spending. Hershey ran real-time ads in areas that didn't sell candy (below the national average of 85 %), while running fewer in areas where they did. This combination of AI and advertising marketing increased these sales by 90 %
KitKat's long-running marketing campaign "Have a Break" was powered by AI. The brand released its AI video in January 2024. KitKat, which targets the market. The Canadian market encourages customers to pause AI tools and take breaks. They also explain how breaks can improve results.
Snickers' AI clone of Jose Mourinho has been unveiled to capitalize on the UEFA Cup, Europe's biggest sporting event. Snickers has asked fans to submit their worst mistakes to the AI version of Jose Mourinho in order to steer them away from their "own goals" using artificial intelligence.
2. Taste innovation
AI also shapes taste profiles by predicting what tastes consumers or markets will want. AI is a powerful tool for R&D because it eliminates the need to experiment with flavors and reduces the risks of launching a product that fails. AI is used by brands to understand taste trends and create new products. develop new products What do the tasters think?
Ofi, a confectionery spice company, is using AI to predict upcoming regional cocoa flavors that will have a major impact on the world. Ofi uses predictive analytics to determine key cocoa trends. The brand researched e-commerce sites, online recipes and restaurant menus to identify niches or upcoming trends.
Ofi found that Asian flavors, such as dragon fruit, sesame, yuzu, lychee and miso, are poised to become mainstream in Europe and the United States. In South Asian countries like Indonesia and India, consumers prefer Western flavors like cookies and cream, toffee and marshmallow.
Maltesers has already collaborated with Google Cloud's AI Kitchen to create a new dessert. Search engine giant Google has trained a machine learning (ML) system to develop recipes for cookies, cakes and scones. He also created hybrids. The brand used the dataset created by model training and cooking tests to develop new flavor profiles. Maltesers buttercream was infused with Marmite.
3. Climate change goals
Around 30 % of global GHG emissions can be attributed to agriculture and food. Confectionery companies are adopting new AI-based strategies, equipment and processes to improve the environmental friendliness and circularity of their production.
Nestlé launched its regenerative system in February. Nestlé launched the launch of its Nestlé Institute of Agricultural SciencesThe company is exploring how agricultural science can improve the environmental impact of Nestlé's ingredients. In conventional plant breeding, the company uses AI to select and find drought and disease resistant and high yielding plant varieties.
World Economic ForumAccording to the report, if 15 to 25 % of farms implemented precision farming techniques, greenhouse gas emissions would decrease by 10 to 20 %, while water consumption could decrease by 20 to 20 %, according to the report. 25 % and agricultural yields increase from 10 to 15 %.
AI helps maximize traceability in the confectionery supply chain. Barry Callebaut works with its cocoa chain to ensure full transparency and traceability. This includes disclosing the geolocation of its direct suppliers. The company, which places a high priority on collaboration, has launched initiatives that move information beyond the direct supply chain.
Conagra Brands – the company behind Boomchickapop cinnamon kettlecorn – partnered with Microsoft in June to develop new automated labeling processes. The brand hopes new AI-powered processes will improve the accuracy of key information found on labels and improve traceability.
4. Manufacturing Automation
Around 30 % confectionery manufacturers are using AI to optimize the supply chain. AI is used to complement manual processes in confectionery factories and laboratories to improve production, reduce waste and inefficiencies, and increase productivity. RetailersOcado, Macy's and Marks & Spencer are all integrating AI into their supply chains and strategies to improve productivity and simplify operations.
Computer vision-type artificial intelligence has significant potential for the baking and confectionery industries. This is especially true when combined with robotic technology. This subset of AI is used to teach machines to interpret and identify visual data. This technology can be used to verify quality, spotting inconsistencies and imperfections in product color, texture and dimensions.
AI is also a trend in confectionery packaging. BKT, an AI expert, helps brands create innovative packaging that stands out from the rest. BKT produces visually stunning display boxes and cartons for confectionery brands using advanced AI algorithms.
5. Customer Service Automation
Intelligent decision-making is also a way to improve customer experience by advancing AI technology. Nestlé has launched a chatbot called “cookie-coach” to help American consumers perfect their chocolate chip cookies. Nestlé's AI-based tool was introduced after the Covid-19 pandemic caused a surge in calls to their helpline. The “cookie-coach” AI avatar, which uses natural language processing, understands and responds to written and spoken questions.
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