“In today's turbulent world – driven by rapid AI advancements, a push for sustainability, and, simultaneously, by global instability and aggressive military threats – business model reinvention, agility, and quick decision-making are no longer optional; they're essential. Consumer markets leaders, attuned to the shifting agenda, are already responding; some are boldly reinventing for this new world, while others risk falling behind if they continue relying on swiftly outdated mindsets and approaches,"
Recognizing strategic choices (61%) and organizational efficiency (59%) as crucial for economic viability, consumer markets (CM) CEOs are acting. The vast majority have undertaken at least one major initiative to transform how their companies create, deliver, and capture value in the past five years.
However, with only about four in ten (37%) CM CEOs seeing related returns exceeding 20%, these actions have yet to translate into major business model changes. A series of incremental changes aren't enough; a greater focus on reinvention, rather than just market expansion or internal innovation, is needed.
Benchmarking the survey's findings—which emphasize the need for reinvention—against your company’s current situation raises a critical question: How can you ensure future success, and where are you on the reinvention journey?
To address this, we suggest breaking it down into three key questions to help you assess and act:
1. Is your company embracing Generative AI (GenAI) or are trust issues holding you back?
New global research published by PwC, reveals that AI has the potential to boost global economic output by up to 15 percentage points over the next decade. GenAI is already delivering results in the Consumer Markets sector. Globally, one in three CM CEOs credit GenAI with boosting revenue and profitability.
To what extent did GenAI impact the following in your company in the last 12 months?
Furthermore, 45% anticipate further profit gains in the coming year, alongside increased efficiencies, reported by 55% of CM CEOs.
However, while the benefits are evident, only one in three fully trust the technology. This underscores the critical need for responsible AI: embedding responsible design principles, rigorous testing, and continuous monitoring and auditing at every step are essential to unlocking its full potential.
The payoff is clear: With 56% of Consumer Markets (CM) CEOs already reporting increased employee efficiency, responsible AI is not just ethical—it's good business.
2. Do you view climate action as a bottom-line boost or a budget buster?
Climate change, a major concern for Consumer Markets (CM) CEOs (20%), comparable to economic and geopolitical risks, demands action and investment—with positive results already emerging. While 14% see new opportunities, especially in the Forest, Paper & Packaging sector, climate-friendly moves are six times more likely to boost revenue than to diminish it. Nearly two-thirds of CEOs also report cost savings or no significant impact from these investments.
Investors are pushing for change: Nearly 70% believe companies should invest in sustainability, even if it impacts short-term profits (PwC Global Investor Survey 2024). Moreover, over half of CM CEOs (56%) have their compensation tied to sustainability metrics, which tend to correlate with increased revenue from related investments.
Despite challenges—namely, regulatory complexity and lack of external demand (both 23%)—companies are seeing benefits. Almost one-fifth (19%) reported cost reductions, with a third of CM CEOs reporting increased revenues. In contrast, 50% of investors prioritise companies that adapt to climate change. This shift is also reflected in consumer behaviour, with 46% globally and 77% of Ukrainian consumers expressing climate concern, driving demand for sustainable products.
The takeaway: Sustainability fuels growth when best practices are adopted, and barriers are overcome.
To what extent have climate-friendly investments* initiated by your company in the last five years impacted the following areas?
* Examples of climate-friendly investments include transitioning to energy-efficient operations, developing greener products and services, and implementing emission-reducing technologies
3. Is your business doing enough to keep pace with evolving industry and customer demands?
Almost 60% of CM CEOs globally said their companies won't survive another decade on their current course. They are actively transforming their businesses. Significant changes are underway, with 76% revising budgeting, 73% adjusting strategic planning, 70% reallocating capital, 65% overhauling procurement and marketing, and 60% addressing tax strategies (as per the PwC recent Reframing Tax Function research). Furthermore, 33% of CM CEOs said their companies are venturing into new sectors, and 15% reported revenue increase from the extensions to core business(es) added in the last five years (e.g., new locations or product lines).
However, CM CEOs report that, on average, only 6% of revenue over the past five years has been generated by entirely new business ventures.
What proportion of your company’s revenue in the last five years came from each of the following sources? (showing mean values)
The path forward is evident: To thrive, companies must reinvent. This means leveraging GenAI, investing in climate-friendly initiatives, and capitalizing on opportunities in evolving industries.
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Comprehensive report CEO Survey
About the survey
We surveyed 4,701 CEOs in 109 countries and territories from 1 October through 8 November 2024, including 153 CEOs from Central and Eastern Europe. The global and regional figures in this report are weighted proportionally to individual country nominal GDP so CEOs’ views are broadly representative across all major regions. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. All quantitative interviews were conducted on a confidential basis.
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