L'Oréal, Mondelez, Nestlé: AI Boosts Product Innovation

L'Oréal Bets on AI to Innovate in Cosmetics

L'Oréal, the French cosmetics giant, has integrated artificial intelligence into its product development processes to reduce timelines and explore new applications for its existing ingredients. For the past four years, the company has been using AI in its laboratories to predict the impact of molecules on skin and hair, even before incorporating them into new formulations. Fabrice Megarbane, president of L'Oréal's consumer products division, explained to Reuters that this technology allows for simulating the performance of ingredients, thus providing the opportunity to digitally test variables before moving on to laboratory trials.

L'Oréal's approach to predictive formulations allows for the reuse of molecules already present in its skincare products. A concrete example is the use of these molecules to develop a collagen shampoo designed to give more volume and density to hair. Thanks to AI, L'Oréal teams can quickly test new combinations of molecules and assess their potential benefits, which has quadrupled the speed of product formulation.

This technological advancement is part of a broader innovation strategy, as L'Oréal seeks to boost its sales after experiencing its slowest growth in years. CEO Nicolas Hieronimus has launched a "beauty stimulation plan" to accelerate the development of new products, responding to the evolving preferences of consumers in the beauty sector.

Mondelez Accelerates Recipe Development with AI

Mondelez, a major player in the consumer goods sector, is also using AI to enhance the development of its food products. The company applies this technology to create and test recipes within its iconic brands such as Cadbury, Toblerone, Oreo, and Chips Ahoy. Filippo Catalano, chief information and digital officer at Mondelez, emphasized that AI enables the generation of recipe ideas, including unusual combinations, before they are reviewed by human experts.

This method reduces the number of physical samples needed during product development. Mondelez has thus been able to develop cookies like the Gluten Free Golden Oreo and a new recipe for Chips Ahoy. Approximately 60% of the recipes created with the AI tool have shown superior performance in terms of nutrition, sustainability, and cost.

AI also helps Mondelez diversify its sourcing by identifying alternatives when the availability or cost of ingredients varies. This flexibility is crucial for optimizing recipes and ensuring a resilient supply chain.

Nestlé's Transition to Natural Ingredients

Nestlé has announced its intention to eliminate all artificial colors from its products by the end of 2026, continuing a process already underway in the United States. Stefan Palzer, chief technology officer at Nestlé, explained that this transition requires finding natural alternatives, testing them in production, and assessing their shelf life.

This initiative is part of a broader effort to reformulate products across Nestlé's portfolio. The U.S. Food and Drug Administration (FDA) is collaborating with manufacturers to eliminate petroleum-based food colorings by the end of 2027, thereby increasing pressure on the industry to adopt more natural solutions.

AI Serving Innovation Beyond Products

Barry Callebaut, in partnership with NotCo, is using AI to develop chocolate recipes, focusing on plant-based ingredient alternatives. This technology allows for the identification and simulation of ingredient combinations for innovative chocolate products.

Additionally, Nestlé and IBM Research have collaborated to create a generative AI tool designed to identify high-barrier packaging materials. This tool evaluates materials based on their ability to protect products from moisture, oxygen, and temperature variations, while also considering cost, recyclability, and functionality.

Haleon, a consumer health company, announced a five-year collaboration with Microsoft in 2026, covering various aspects of product innovation and supply chain. AI is used to accelerate research, testing, and formulation processes, without replacing human teams but optimizing their work.

Mondelez clarified that recipe ideas generated by AI are always evaluated by human experts before moving on to more advanced development stages, ensuring the quality and innovation of the final products.