L’Oréal uses AI to shorten product development timelines and identify new uses for ingredients already in its portfolio.
The French cosmetics group has been applying AI in its laboratories for the past four years, and Fabrice Megaban, president of L’Oréal’s consumer products division, told Reuters that the technology helps the company predict how molecules will affect skin and hair before they are used in new formulations.
L’Oréal separately said its predictive formulation work can simulate ingredient performance, allowing scientists to digitally test variables before testing in the lab. The company describes the initiative as part of its use of predictive science in beauty product development.
One recent example concerns molecules previously used in skin care products. L’Oréal has repurposed them into a collagen-based shampoo designed to give lift and volume to hair.
Megabane said AI will allow product teams to test new combinations of molecules and evaluate their potential benefits more quickly. L’Oréal said AI has made product formulation four times faster.
L’Oréal describes the technology as a way to narrow down formulation options before testing in the lab. The use of AI comes alongside a broader innovation drive as the group reported its weakest sales growth in years.
CEO Nicolas Hieronymus last year introduced a “beauty stimulation plan” to support new product development. The company aims to accelerate launches as consumer preferences continue to change across beauty categories.
Other consumer goods companies such as Nestlé, Haleon, and Mondelēz are also leveraging AI in product development. Their work includes testing ingredients, creating recipes, and tackling supply chain issues.
Speed up food testing
At Mondelez, AI is used to support recipe development across brands such as Cadbury, Toblerone, Oreo, and Chips Ahoy. Filippo Catalano, chief information and digital officer, said the technology allows the company to create and test recipe options more efficiently.
The company’s AI tools can generate recipe ideas with 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 reduces the number of samples typically generated during product innovation. Mondelez uses this system to evaluate recipe options before further testing the selected formulation.
Mondelez said the tool supports the development of gluten-free Golden Oreo Cookies and revamped Chips Ahoy recipes. The company said 60% of biscuit recipes created with AI tools showed better performance in terms of nutrition, sustainability and cost.
Catalano said AI will also help Mondelēz reduce its reliance on single sourcing by identifying recipe options that vary depending on ingredient availability, price and other requirements. The company has combined this tool with recipe optimization and supply chain flexibility.
Restructuring puts pressure on
Nestlé plans to remove artificial colors from all its products worldwide by the end of 2026. The company had already removed artificial colors from its U.S. portfolio.
Stephan Palzer, Nestlé’s chief technology officer, said the work required screening natural alternatives, testing during manufacturing and evaluating shelf life. The company describes the changes as part of a broader effort to restructure products across its portfolio.
The U.S. Food and Drug Administration announced that it is working with manufacturers, retailers, and industry groups to eliminate the remaining six authorized colorants frequently used in the food supply by the end of 2027. The agency is also tracking industry commitments to eliminate petroleum-based food coloring.
Beyond product formulation
Barry Callebaut partners with NotCo to leverage AI in chocolate recipe development, including work with alternative ingredients. The companies describe the technology as a way to identify and simulate the combination of plant-based ingredients in chocolate products.
In 2025, Nestlé and IBM Research announced they had developed a generative AI tool to identify high-barrier packaging materials. The companies said the tool can evaluate materials designed to protect products from moisture, oxygen and temperature changes, while also considering cost, recyclability and functionality.
This packaging project uses chemical language modeling and IBM Research’s regression transformer to relate molecular structure to physicochemical properties. Nestlé said the tool was developed to support material discovery for packaging applications.
Haleon announced a five-year partnership with Microsoft in June 2026, covering consumer insights, product innovation, supply chain operations, scientific research, clinical content development, forecasting, and commercial execution. Consumer health companies were among the companies cited for using AI for product innovation.
Catalano said AI is shortening development schedules by compressing work that previously took months or years. This technology does not replace human product teams, but is being used to speed up existing research, testing, and formulation processes.
Mondelez said human experts will evaluate recipe ideas generated by the AI before the product goes into further development.
(Image provided by AdoreBeautyNZ)
Reference: Takeda Pharmaceutical signs $600 million AI drug discovery agreement with Insilico
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