According to the EY-Parthenon 2026 Growth Survey, consumer products and retail (CP&R) companies are facing increasing challenges in achieving growth, with nearly all respondents indicating they have adjusted their growth strategies over the past year due to external market pressures. A significant 85% of CP&R leaders reported that the current business environment is more difficult than it was a year ago, highlighting the widespread nature of these challenges.
The survey revealed that 71% of respondents identified geopolitical issues, such as interest rates, trade policies, inflation, and global supply chain stability, as the leading disruptors affecting their growth strategies. Additionally, the impact of technological innovations, particularly those related to artificial intelligence (AI), along with new regulatory and legal changes, are further complicating growth efforts. Over half of the respondents noted that most of their growth initiatives did not meet expectations in the last year.
To adapt to these circumstances, CP&R companies have widely changed their growth strategies. The survey found that an overwhelming 99% of leaders cited a need to revise their plans, driven by a perception that market volatility is a permanent fixture. Many companies are becoming more innovative by employing a diverse range of growth initiatives, including strategic AI—which is now considered on par with traditional product and market development strategies—as reported by 66% of respondents.
While there is confidence in AI’s potential for driving growth—91% of CP&R leaders express optimism about AI’s capabilities—most companies are still at early adoption stages. Approximately 80% are in the process of piloting or using AI tools for growth-related projects, although only 33% trust AI to inform key growth decisions. Many leaders reported that their primary use of AI currently focuses on increasing efficiency and productivity rather than strategic growth.
Internal obstacles also hinder rapid innovation, with challenges including skill gaps, outdated systems, fragmented data, and budget constraints. Despite these barriers, leaders maintain a positive outlook, reporting strong self-assessments regarding their data readiness and execution capabilities.
To achieve sustainable growth, CP&R companies are advised to focus on five key areas: fostering a fail-fast, learn-fast culture; establishing clear goals and success metrics; reallocating resources toward promising opportunities; leveraging AI for enhanced data utilization; and utilizing acquisitions and partnerships to accelerate growth. Leaders are encouraged to view strategic AI as an integral component of their overall growth strategy, linking it to various enterprise functions like pricing, customer engagement, and demand sensing.
By coordinating efforts across culture, capital allocation, data management, and partnerships, CP&R companies can better manage their growth ambitions and translate them into tangible results in today’s challenging market.
