For years, CPG companies have relied on traditional R&D models to develop new products. But the industry is evolving. Consumer expectations are shifting faster than ever, sustainability is a business necessity, and digital transformation is reshaping how brands operate.While some companies struggle to keep pace, Unilever is driving measurable results. With more than 3.4 billion people using its products daily, Unilever has redefined how to innovate at scale. Through open collaboration, AI-driven R&D, and next-generation technology, the company accelerates product development and strengthens its competitive edge.

Here are some steps that Unilever took to crack the code of consumer goods innovation.

Play #1: Building open ecosystems for faster breakthroughs

Most CPG companies develop new products in isolation, refining ideas internally before launching them to market. Unilever takes a different approach. At its Food Open Innovation Hub in Wageningen, the company has built an environment where scientists, food-tech startups, and agricultural experts work side by side. This ecosystem connects real-world research with real-time consumer feedback, ensuring that new products align with market demands before they hit the shelves.

The Wageningen hub functions as a real-time testing ground, with research labs, a consumer-facing restaurant, and pilot-scale production facilities. By embedding consumer insights directly into the R&D process, Unilever reduces risk, shortens development cycles, and increases the likelihood of market success.

The results are tangible. Unilever’s advancements in plant-based foods, alternative proteins, and sustainable agriculture drive sales growth and set new industry benchmarks.

Play #2: Using AI and quantum computing to reinvent R&D

Traditional product development relies on trial and error, a slow and costly process. Unilever has replaced this outdated method with advanced AI and quantum computing, allowing it to simulate complex molecular structures and optimize formulations at unprecedented speeds. By integrating Microsoft Azure Quantum Elements into its research, Unilever accelerates scientific discovery. AI-driven simulations allow R&D teams to test chemical and biological formulations digitally, reducing reliance on physical prototypes and cutting development costs.

AI is also transforming supply chain efficiency. By analyzing vast datasets, Unilever predicts ingredient interactions, stability, and performance before a product reaches production. These insights streamline operations, improve product quality, and minimize costly reformulations.The impact is already visible in Unilever’s biggest brands. AI-driven R&D is optimizing sustainable home care products and improving the textures of plant-based food alternatives, increasing customer satisfaction and boosting profitability.

Play #3: Rethinking materials science for a sustainable future

Sustainability is no longer a brand differentiator—it is a business imperative. Consumers demand environmentally responsible products, and companies that fail to meet these expectations risk losing market share.

Unilever is addressing this challenge at its Liverpool Innovation Hub, one of the world’s most advanced materials science laboratories. Researchers there are developing biodegradable packaging, water-efficient formulations, and next-generation materials that align with the company’s long-term environmental goals.The lab uses AI-driven robotic formulation engines to test thousands of material combinations rapidly. This approach ensures sustainability efforts drive efficiency, reduce waste, and enhance product performance—all without inflating costs.

Unilever’s commitment to sustainable innovation is paying off. The company has reduced its reliance on virgin plastic, optimized formulations to require less water, and developed materials that meet both environmental regulations and consumer expectations.

Play #4: Scaling innovation through corporate venture capital

Unilever Ventures, the company’s corporate venture capital arm, is a key driver of its innovation strategy. By investing in high-potential startups, Unilever secures early access to disruptive technologies that enhance product development, supply chain efficiency, and sustainability.

Through Unilever Foundry, its open innovation platform, the company has launched over 400 pilots and invested in more than 170 startups. These partnerships give Unilever a direct pipeline to emerging consumer trends, allowing the company to introduce breakthrough products faster than competitors.

One example is Unilever’s investment in biotech firms developing sustainable ingredients, which has led to the reformulation of key brands to reduce their environmental footprint while maintaining high product performance. This approach enhances Unilever’s innovation capabilities and strengthens its market position by continuously evolving to meet consumer expectations.

The future of CPG belongs to innovation leaders

Creating a system where innovation drives business growth is key to Unilever's success. By integrating open collaboration, AI-driven research, and sustainability-focused materials science, the company is building competitive advantages that translate into revenue growth and operational efficiency.

The numbers back it up. CPG brands that embrace open innovation models achieve 33% higher revenue growth, reduce time-to-market by up to 40%, and generate significant cost savings across supply chains. For companies looking to stay ahead, the challenge isn’t whether to innovate—it’s how to build the right strategy fast enough. Unilever has provided the blueprint. Who will follow?

At SOSA, we work alongside industry leaders who recognize that open innovation is not just about access, it is about having the right partners who know where to look. By identifying and integrating emerging technologies, we help brands enhance efficiency, reduce waste, and create high-impact solutions that meet evolving consumer demands.

Get the full picture: Insights from our latest report

Unilever’s approach to open innovation is setting new industry standards, but it’s just one piece of the puzzle. Our latest report explores how leading CPG companies are leveraging AI, sustainability, and strategic investments to transform their businesses.

• Why 95% of executives say consumer demands are changing faster than they can adapt.
• How companies using open innovation models see 33% higher revenue growth.
• The key technologies shaping the next decade of CPG.

Download the full report now and take the next step toward innovation-driven growth.

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