L’Oreal, Mondelez, and Nestle use AI to speed product development

L’Oreal is using AI to shorten product development timelines and identify new uses for ingredients already present in its portfolio. The French cosmetics group has applied AI in its laboratories for the past four years, with Fabrice Megarbane, president of L’Oreal’s consumer products division, telling Reuters that the technology helps the company predict how molecules will affect skin and hair before they are used in new formulations. L’Oreal has separately said its predictive formulation work can simulate ingredient performance, allowing scientists to test variables digitally before lab testing. The company has described the work as part of its use of predictive science in beauty product development. One recent example involved molecules previously used in skincare products. L’Oreal repurposed them for a collagen-based shampoo designed to add lift and fullness to hair. Megarbane said AI allows product teams to test new combinations of molecules and assess their potential benefits more quickly. L’Oreal said AI has made product formulation four times faster. L’Oreal has described the technology as a way to narrow formulation options before lab testing. Its use of AI sits alongside a broader innovation push after the group reported its slowest sales growth in years. Chief Executive Nicolas Hieronimus introduced a “beauty stimulus plan” last year to support new product development. The company has been looking to accelerate launches as consumer tastes continue to change across beauty categories. Other consumer goods companies, including Nestle, Haleon, and Mondelez, are also using AI in product development. Their work includes ingredient testing, recipe generation, and efforts to address supply chain issues. Faster testing in food At Mondelez, AI is being used to support recipe development across brands including Cadbury, Toblerone, Oreo, and Chips Ahoy. Chief Information and Digital Officer Filippo Catalano said the technology helps the company create and test recipe options more efficiently. The company’s AI tool can generate recipe ideas, including unusual combinations, before human experts review them. Catalano said this can reduce the number of physical samples needed during product development. Catalano said the tool is reducing the number of samples typically generated during product innovation. Mondelez uses the system to assess recipe options before selected formulas move further through testing. Mondelez said the tool supported the development of Gluten Free Golden Oreo cookies and a refreshed Chips Ahoy recipe. The company said 60% of biscuit recipes produced with its AI tool performed better across nutrition, sustainability, and cost. Catalano said AI can also help Mondelez reduce dependence on single sourcing by identifying alternative recipe options when ingredients vary by availability, price, or other requirements. The company has linked the tool to recipe optimisation as well as supply chain flexibility. Reformulation adds pressure Nestle plans to remove artificial food colourings from all products worldwide by the end of 2026. The company had already removed artificial colourings from its US portfolio. Nestle Chief Technology Officer Stefan Palzer said the work required screening natural alternatives, testing them during production, and assessing shelf life. The company has described the change as part of wider work to reformulate products across its portfolio. The US Food and Drug Administration has said it is working with manufacturers, retailers, and trade groups to remove six remaining certified colour additives frequently used in the food supply by the end of 2027. The agency has also been tracking industry pledges to remove petroleum-based food dyes. Beyond product formulas Barry Callebaut has partnered with NotCo to use AI in chocolate recipe development, including work on ingredient alternatives. The companies have described the technology as a way to identify and simulate combinations of plant-based ingredients for chocolate products. Nestle and IBM Research said in 2025 that they had developed a generative AI tool to identify high-barrier packaging materials. The companies said the tool can assess materials designed to protect products from moisture, oxygen, and temperature changes, while also factoring in cost, recyclability, and functionality. The packaging project uses chemical language modelling and IBM Research’s regression transformer to link molecular structures with physical-chemical properties. Nestle said the tool was developed to support materials discovery for packaging applications. Haleon announced a five-year collaboration with Microsoft in June 2026 covering consumer insights, product innovation, supply chain operations, scientific research, clinical content development, forecasting, and commercial execution. The consumer health company was among the firms cited as using AI in product innovation. Catalano said AI is reducing development timelines by compressing work that previously took months or years. The technology is not replacing human product teams, but is being used to speed up existing research, testing, and formulation processes. Mondelez said human experts assess AI-generated recipe ideas before products move further through development. (Image by AdoreBeautyNZ ) See also: Takeda signs $600M AI drug discovery deal with Insilico Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. 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