L’Oréal, Mondelez, and Nestlé Use AI to Accelerate Product Development

Artificial intelligence is becoming a powerful tool for global consumer brands

L’Oréal, Mondelez, and Nestlé are among the major companies now using AI to speed up product development across beauty, food, packaging, and consumer health.

For L’Oréal, AI is helping shorten the long process of beauty product formulation. The French cosmetics company has been using AI in its laboratories for the past four years to predict how molecules may affect skin and hair before they are tested in actual products.

Fabrice Megarbane, president of L’Oréal’s consumer products division, said AI allows the company to study molecule combinations and identify possible benefits more quickly. Through predictive formulation, L’Oréal can simulate ingredient performance digitally before moving to laboratory testing.

One example is the company’s use of molecules originally found in skincare products. With AI support, L’Oréal repurposed them for a collagen-based shampoo designed to add volume and fullness to hair.

According to the company, AI has made product formulation up to four times faster. The technology helps scientists narrow down formulation options before physical testing begins, reducing wasted time and improving research efficiency.

The AI push also comes as L’Oréal works to strengthen innovation after reporting slower sales growth. CEO Nicolas Hieronimus previously introduced a “beauty stimulus plan” to accelerate product launches and respond to fast-changing consumer preferences.

AI Enters the Food Lab

AI is also changing the way food companies create and test recipes.

At Mondelez, the maker of Cadbury, Toblerone, Oreo, and Chips Ahoy, AI is being used to support recipe development. Chief Information and Digital Officer Filippo Catalano said the company’s AI tool helps generate and evaluate recipe ideas more efficiently.

The system can suggest recipe options, including unusual ingredient combinations, before human experts review them. This reduces the number of physical samples needed during product testing.

Mondelez said the tool helped in the development of Gluten Free Golden Oreo cookies and a refreshed Chips Ahoy recipe. The company also reported that 60 percent of biscuit recipes created with its AI tool performed better in areas such as nutrition, sustainability, and cost.

AI is also helping Mondelez improve supply chain flexibility. By identifying alternative recipe options, the company can reduce dependence on single-source ingredients and adjust more easily when availability, pricing, or production requirements change.

Nestlé Uses AI for Reformulation and Packaging

Nestlé is also using AI as it works to reformulate products across its global portfolio.

The company plans to remove artificial food colorings from all products worldwide by the end of 2026. Nestlé had already removed artificial colorings from its US product line.

Chief Technology Officer Stefan Palzer said this requires screening natural alternatives, testing them during production, and checking their shelf life. AI can support this process by helping researchers evaluate ingredients and possible replacements more efficiently.

The move also follows broader regulatory pressure. The US Food and Drug Administration has said it is working with manufacturers, retailers, and trade groups to remove several remaining certified color additives commonly used in the food supply by the end of 2027.

Beyond food formulas, Nestlé has also worked with IBM Research on generative AI for packaging materials. In 2025, the two companies said they developed an AI tool that can identify high-barrier packaging materials designed to protect products from moisture, oxygen, and temperature changes.

The tool can also assess cost, recyclability, and functionality, helping Nestlé explore packaging materials that are both effective and sustainable.

AI Is Expanding Across Consumer Goods

Other companies are also applying AI in product innovation.

Barry Callebaut has partnered with NotCo to use AI in chocolate recipe development, especially for ingredient alternatives and plant-based formulations.

Haleon, a major consumer health company, announced a five-year collaboration with Microsoft in June 2026. The partnership covers consumer insights, product innovation, supply chain operations, scientific research, clinical content development, forecasting, and commercial execution.

Across these industries, AI is not replacing human product developers. Instead, companies are using it to compress research timelines, reduce trial-and-error testing, and help experts make faster decisions.

Catalano said AI is reducing work that once took months or years. Human experts still review AI-generated ideas before products move forward.

The message is clear: AI is no longer just a tool for tech companies. It is now inside beauty labs, food kitchens, packaging research, and product innovation teams.

From shampoo to cookies to chocolate and packaging, AI is helping brands create faster, test smarter, and compete harder in a market where consumer tastes change quickly.