From speculating on Generative AI to emerging fads in CPG, venture investment surprises, the swelling Wellness Economy and much more — there was a lot of noise to sort through in 2023.
We’ve gazed into the crystal ball of 2024 through the lens of our extraordinary experts to provide a clear vision of the year to come and separate the signals from the noise.
These are the top 2024 trends in disruptive innovation, emergent technology, venture building and beyond that consumer brands can’t miss.
1. Generative AI Will be the Leading Competitive Advantage for Consumer Brands
If 2023 was the year of GenAI enlightenment for corporations and brands that took advantage, then 2024 is the year of GenAI adoption to fuel breakthrough technology and to take ventures to market in record time.
The trend toward adopting Generative AI in 2023, spearheaded by industry giants, is influencing current investment opportunities by moving beyond linear venture building & siloed knowledge sharing.
Leveraging the new emergent tech era
It’s no outlandish statement to predict that Generative AI will impact 2024 — the real takeaway here is that every advantage gained through knowledge building, adoption, external partnerships, and ultimately, upskilling, is a huge moon-landing step forward beyond the competitors that continue with a wait-and-see approach.
Brands that prioritize upskilling and activation of Gen AI will be best positioned to capitalize in 2024
Disruption disinterest is a downfall: For those who let the uncertainty, hesitation and trepidation from 2023 linger into 2024 without significant investment in knowledge fulfilment, 2024 will be a make-or-break year.
Corporations, and investors, will be better prepared and equipped to adopt Generative AI and leverage its capabilities, as well as form alliances with companies who are driving GenAI innovations forward. But not all will, only those who invest in upskilling, and understand that the Generative AI era is here to stay.
Those who don’t learn how to leverage Generative AI now will be left significantly behind by 2025. Full adoption isn’t essential, but standing still is definitely grounds for irrelevancy.
![“It’s important for corporates to take a step back [from Gen AI] and ask: 1) How does this help OUR customers or make us efficient at delivering our value? 2) Is there an ROI to this technology for us? 3) Is now the right time – do I have the resources and funding to implement this to deliver the intended results?” – Harsh Bagde (Innovation Strategy Manager)](https://www.pilot44.com/hs-fs/hubfs/Pilot44%20CPG%20Innovation%202024%20Trends%20%E2%80%93%20Harsh%20Badge.png?width=500&height=410&name=Pilot44%20CPG%20Innovation%202024%20Trends%20%E2%80%93%20Harsh%20Badge.png)
Companies don’t have to fully integrate or adopt it, but acceptance and learning are musts to understand adoption models and techniques and to leverage those collaboration opportunities. The first stages of knowledge building are embedded in experimentation, but it can’t end there because 2024 is an imperative year to build the mechanisms and methods that can help ideas and innovations keep up with the accelerated rate of dynamic change across industries.
Generative AI will accelerate the development of new breakthrough ventures spanning energy, biotech, pharma, and more
The surge in efficiency powered by Generative AI in 2023 lays a fertile ground for investment prospects in Biotech's precision medicine, remote patient monitoring and wearable tech. More than that, nearly every facet of disruptive technologies can be improved in both efficacy and efficiency through Generative AI, with a newfound ability to develop ventures in those areas thanks to the widespread accessibility of learning and leveraging technology.
Information technology, integrated with Generative AI, is emerging as a significant innovation driver as well, signaling a promising trajectory for investment prospects in 2024 with intertwined advancements of information technology and biotechnology.
Furthermore, the convergence of health & wellness, the wellness economy, and biotech innovations is poised to offer solutions wherever individuals seek advancements in their well-being.
This synergy signifies a promising trajectory for investment prospects in 2024.
On top of that, there are myriad nexus points for energy transition, biotechnology, pharma, sustainability, circular economy and Generative AI, where small overlaps can now be expanded for innovative venture building to integrate along multiples.
2. Energy Transition & Climate Tech Are High-Flying Investment Opportunities Set to Soar in ‘24
Emission reduction isn’t polarizing anymore: The anticipated increase in VC investments in Climate Tech aligns with the uptick in energy transition firms that surged in valuation to the end of 2023, led by Tesla. 2024 has already seen increased investment into and from other EV players such as Vinfast.
Innovations in electric vehicles, alternative energy and semiconductors – again, integrated with and accelerated by Generative AI — are at the top of our foundational advancements in 2024.
Think of energy tech & climate tech as the wellnessification for a better world.
With more of the population turning toward the betterment of themselves and the planet, there is a viable and supported path to truly transformative dynamic venture building that aligns on both fronts, while also providing growth-opportunity investments and robust ROIs through these segments.
Rather, consider it as solving the consumer connection conundrum — apply the same ethos that people resonate with in how brands, products and tech evolves — to not only make things better for them but for the world they live in.
3. The Wellness Economy is Here to Stay and is Poised for Another Breakthrough Year
Goodness is getting an upgrade: The Wellness Economy's profound influence on CPG landscapes stands as another ripe opportunity for stable investments and robust ROIs, particularly through the synergy of Generative AI, health & wellness and biotech innovations (sensing a pattern here?)
The convergence of these sectors is predicted to drive significant investments in 2024.
Wellness won’t wait till 2025, and it won’t go away soon
65% Of our experts project increased VC funding in the Health & Wellness sector.
The Wellness Economy profoundly influenced the CPG landscape and more in 2023, providing diverse opportunities for brand-consumer connections.
And as we’ll get to soon, consumers are craving more genuine and engaging connections with the brands they’re willing to invest their energy, time and wellbeing in.
4. Brands that Prioritize Innovation at the Intersection of Omnichannel Commerce and Customer Experience Will Thrive
Synergistic shopping rewards both sides: Reviewing late 2023 trends, two major opportunities stand out: GPT collaborations and internal LLM investments for enhanced customer experience.
More untapped potential awaits as those fell short in some areas, not quite delivering the personalization experience consumers are seeking.
Frictionless shopping and enhanced audience engagement provide a competitive edge in CPG. Simplifying the entire consumer journey — browsing, engagement, purchase and support — can satisfy customer desires and create fruitful engagement & experiences.
Invest now for rapid advancements throughout 2024
This space offers vast opportunities for 2024 investments and partnerships in external tech, benefiting both ventures and CPG brands
- Exploring partnerships with RMNs that are looking to be true partners, and seeing which ones are leveraging the tech themselves, is an avenue for connecting with consumers in genuine ways.
- Move beyond the “planning to have a plan” to adopt the Generative AI stage, and get in the game, and ahead of the competition. Look to other industries and like-minded CPG brands in other segments for outside inspiration and innovation ideas.
- Refining the supply chain, automating with smart, flexible tech, is a great way to start toward that fulfilment. Investigate landscape and startup maps with partners to find ideal fits.
5. Harnessing Disruptive Technologies Will Enable Brands to Deliver Authentic Hyper-Personalization At Scale
Leverage GenAI for the authentic generation: People want their personalization to feel genuine but not intrusive, tailormade yet not tacky. It harkens back to the consumer connection conundrum of aligning with evolving consumer ethos that value brands and companies that feel authentic in what they do, and genuine in how they interact with their audience. Hyper-personalization isn’t just in the marketing, it’s in the products and approaches themselves.
2023 led to significant AI and social media investments in personalization. Yet, dissatisfaction arose due to inadequate tailored offerings. In 2024, an improved understanding of technology will refine hyper personalization, boosting CPG investments for more authentic audience engagement & sophisticated offerings.
The more sophisticated and genuine the personalization efforts, the more the consumer will care about you. Opting for next-level, always-on GenAI consumer insights and opening up transparent feedback mechanisms that make consumers into loyal partners is low-hanging fruit.
Turning traditional influencer strategies into dynamic engagement ventures is another asset pathway to providing personalization that truly connects with consumers.
6. “Circularity” Becomes a New Buzzword and the Top Investment Area for Forward-Looking Brands
The global economy comes full circle: Circular economy was one of the biggest trends of 2023, and the interest in the topic rose steadily along with newfound tech and Generative AI capabilities.
If climate tech will be a leading 2024 innovation trend then that feeds the circular economy, through sustainable packaging and efficient supply chains. This will be sought after by companies and consumers, suppliers and buyers.
Consumers seek on-time deliveries and automated updates in the supply chain, as we’ve alluded to. Generative AI innovations are pivotal here, particularly for CPG brands aiming for a seamless — frictionless — experience.
Consumer interest in brands favoring health and environmental improvement will drive innovations that could have the end of 2024 looking nothing like the landscape we have now. That’s why we see 2023 as a foreshadowing for the circular economy moving beyond a buzzword in 2024 and becoming a way of bettering the global economy.
Conclusion: Strategies for Success in 2024
2024 is poised to be a year of significant transformation for consumer brands, with Generative AI acting as a key driver in revolutionary landscape changes.
- The convergence of technology with sectors like health & wellness, biotech & the circular economy indicates a shift towards more integrated, innovative and sustainable business models that meet the needs and expectations of today’s consumers — betterment for themselves and the planet.
- Consumer brands need to focus on adopting and integrating emergent technologies, like Generative AI, and leverage them for enhanced consumer engagement, hyperpersonalization and efficient operations in areas like supply chain management and product development.
- Brands should actively invest in upskilling and forming external tech partnerships to harness the full potential of Generative AI and other emerging technologies.
- Sustainability and The Wellness Economy will be crucial areas for investment and innovation.
- Embracing a dynamic approach to venture building, focusing on consumer-centric strategies (like omnichannel, frictionless commerce, and hyper-personalization), and contributing to sustainable practices within the circular economy will be key strategies.
- Staying agile and responsive to the evolving market landscape will be essential for success in 2024.
Modern venture building was already undergoing an accelerated transformation heading into this year, and with Generative AI and other disruptive technologies leading the way, we’re embracing 2024 as the year of evolved dynamic approaches.
Our approach remains agile amidst groundbreaking landscape shifts & technology evolutions, through sound, grounded research & methodology techniques.
For future-forward companies ready to grow & expand, and even build new ventures, 2024 is full of opportunities to connect with consumers better than ever before and to rapidly innovate for tomorrow, today.
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