These days, the Internet of Things (IoT) is used by every industry to automate operations and obtain useful information from all over the value chain. The Consumer Packaged Goods (CPG) is no exception.
Industry players have long used IoT to analyze machine performance, carry out quality control, and, more recently, streamline their supply chains, production, and client service strategies.
By 2031 the CPG industry value will hit US$18.94 trillion, registering a Compound Annual Growth Rate (CAGR) of 5.1%. Undoubtedly, the use of IoT will have an impact on this transformation and growth. Let’s explore how this will happen.
IoT industry statistics
But first, let’s see how the Internet of Things has evolved in recent years:
At the end of 2024, there were 18.8 billion IoT devices registered in the world, and this number is expected to surpass 40 billion by the end of the decade, according to IoT Analytics.
Globally, US$260 billion was spent on IoT technology, according to Statista.
In 2023, the size of the global IoT market was estimated to be US$27.41 billion, and by 2030 experts forecast it to register a compound annual growth rate (CAGR) of 24.8%, with the key drivers fueling market expansion being:
1. Increased data generation (as a result of the increased use of IoT devices)
2. A growing preference for automating business operations
3. Increased demand for advanced analytics across a wide range of industries.
Now, let’s dive into the current usage of IoT by CPG manufacturers:
IoT for real-time insights
Real-time monitoring enables prompt problem-solving and provides fast insights, which results in better operational agility, responsiveness, and efficiency. How does this appear in practice?
Take, for instance, a bottling enterprise – it can use smart sensors on motors, conveyors, and filling equipment to track vibration, temperature, and injection rate. IoT sensors can even keep an eye on such variables as temperature and humidity.
Another issue that the IoT solves is out-of-stock products. Using sensors, the IoT devices generate real-time information for the supply chain, making it possible for businesses to monitor their goods from the manufacturing stage up to their shipment to the buyer.
That said, the IoT can ensure the following:
Better inventory control
Avoidance of stockouts
Improved retailer relations
Increased supply chain efficiency.
How are the future factories built today, using AI and IoT?
IoT for automation or repetitive tasks
In the CPG industry, automation boosts production and efficiency:
RPA (Robotic Process Automation) IoT automates processes based on real-time data by integrating RPA bots with IoT devices. RPA bots undertake preset operations in response to data collected by IoT sensors.
IoT-powered waste reduction systems evaluate production indicators and optimize resource utilization, which ultimately can improve sustainability, increase savings, and fortify the business's dedication to ecologically-friendly operations.
Case study: Bridgera – a software developer - came up with an IoT solution for a waste management firm. The project entailed deploying IoT solutions that optimized operations and gave the administrative staff real-time statistics allowing collection routes optimization, operational cost reduction, and improvement of overall efficiency.
Artificial Intelligence and Internet of Things (AIoT)
When the Internet of Things is combined with AI, we get AIoT (Artificial Intelligence and Internet of Things), which makes it possible for various IoT devices to automate operations, make decisions, as well as react smartly without requiring human intervention.
AI systems are used to examine vast amounts of IoT data to collect insights, predict results, and adjust to shifting circumstances, which improves the efficiency and intelligence of IoT devices.
By using data in smart ways, Consumer Packaged Goods manufacturers can see, control, and improve their operations like never before.
Here are several benefits of CPG companies adopting AIoT:
Monitoring environmental conditions
AIoT monitors temperature and humidity across the production line, ensuring ideal conditions for handling and processing materials, which can help dodge quality issues.
Tracking assets
Real-time monitoring of raw materials, work-in-progress items, and final products provides comprehensive oversight across the supply chain, enabling manufacturers to enhance quality control, ensure regulatory compliance, and efficiently manage recalls if necessary.
Maintaining equipment health
Sensors track the operation of machinery to identify problems early and forecast when equipment requires maintenance, thus minimizing downtime and ultimately increasing machinery longevity.
Optimizing processes
By collecting data from different sources in one place, AIoT helps manufacturers get a full picture of process parameters, allowing for optimization, detecting problems, and thus assisting in generating a quality output.
Take a tour of the Dahua AIoT Industrial Park
Expert Networks’ Role
IoT-driven solutions offer significant efficiency gains for various industries, including the CPG sector, by enabling real-time monitoring, predictive maintenance, and more. However, navigating this technological revolution often requires in-depth knowledge and professional guidance.
In this situation, RightAngle can serve as a crucial resource for companies by providing CPG manufacturers with access to valuable insights via connections with industry experts, being a bridge between IoT's potential and its practical implementation.
In addition, by facilitating cross-industry collaboration, RightAngle enables CPG manufacturers to draw lessons from IoT successes in various fields, such as logistics and automotive.
These insights empower decision-makers to adopt IoT solutions more effectively, avoiding common pitfalls and accelerating time-to-value.
Final thoughts
By embedding intelligence into production processes and leveraging real-time data, companies can optimize efficiency, reduce waste, and meet customer demands with unprecedented precision.
The power of connected devices not only enhances operational capabilities but also allows brands to gain deeper insights into consumer preferences.
With IoT at the heart of CPG manufacturing, businesses can stay ahead of the curve and create experiences that resonate with the modern market.