Technology and patent intensity in Consumer Goods

Digitalisation, sustainability and functional improvements redefine competitiveness and the role of patents

Historically, value creation and competitiveness in consumer goods industries have been driven by branding rather than technology. Success in these sectors traditionally relied on building and maintaining strong emotional connections with consumers rather than technological innovation (with notable exceptions such as consumer electronics). Leading consumer goods companies have thrived by deeply understanding customer preferences, fostering brand loyalty, and consistently delivering high-quality products supported by creative and persuasive marketing. This brand-centric approach, combined with a relatively low reliance on proprietary technology, has typically prioritized trademarks and designs over patents in companies' intellectual property strategies. Now, trends in digitalisation, sustainability, and functional improvements are challenging this convention, reshaping how patents contribute to competitive advantage in consumer goods industries.

While brand continues to be a primary value driver, the landscape is shifting, and technology-based competitiveness is becoming increasingly important. Digitalisation, sustainability and the demand for functional improvements in products are driving fundamental changes across the consumer goods sector. These forces are redefining how value is created, captured and controlled.

• Digitalisation is transforming how products are designed, manufactured, and delivered. The integration of smart and connected products that blend traditional goods with cutting-edge technology and the use of advanced data and analytics, drive personalised user experiences and operational efficiency.
• Sustainability is evolving from a buzzword to a business imperative, pushing consumer goods companies to innovate in eco-friendly materials, production processes, and lifecycle management. These advancements typically require technology-based solutions to meet regulatory requirements and growing consumer demand for sustainable products and practices.
• Functional improvements increasingly relies on technology to enhance product performance and quality, and to deliver superior user experiences. Advances in, for example, material science, chemistry, biotechnology, ergonomics, and food science play an important role in new product development. As consumer expectations rise, companies must integrate these scientific disciplines to stand out in a competitive market.

Patent filing profiles

These technology-based competitiveness drivers are shaping the consumer goods patent landscape, which has shown steady or increasing growth in patent filings over the past decade. An analysis of the patent landscape reveals four distinct patent filing profiles, reflecting consumer goods companies’ investment levels and strategic approaches to technology innovation: ‘Rapid Expanders’ (increasingly making technology moves backed by patents), ‘Consistent Innovators’ (steady tech innovation and continuous trend in patent growth), ‘Sporadic Filers’ (sporadic investments in tech and opportunistic patent filings), and ‘Dormant Players’ (not using patents as competitive lever).

In this article, we use these profiles to illustrate how consumer goods companies’ investments in technology-based innovation are reflected in their patenting activity.

From tech-enhanced fashion to zero-waste food production, technology is reshaping innovation and competition in the consumer goods sector. As technology-based competitiveness becomes increasingly important, companies must make deliberate, business-driven decisions about how they approach patents.

• For “Rapid Expanders”, challenges include to avoid over-filing or filing in areas that don’t add value, and to ensure patents are actively used to support business goals – not left as inactive cost items on the P&L.
• “Consistent Innovators” must regularly recalibrate their efforts to stay aligned with evolving strategic priorities and market dynamics. Like the Expanders, they must also ensure that their patent portfolios are actively leveraged, rather than quietly accumulating as overhead cost.
• “Sporadic Filers” may need to reassess whether an opportunistic approach is sufficient in the long term. If investment increases, systematically selecting the right areas is key to making patents count and avoiding unnecessary cost.
• “Dormant Players” must consider whether they can afford the risk of having no patent position in a tech-driven market, and whether they have the innovation capabilities needed to start building meaningful portfolios.

Independent of profile, companies need a business-driven and proactive approach to patents, both to stay ahead and avoid being caught off guard. This means being able to clearly answer:

• Why are we (or aren’t we) investing in patents? What is the intended impact on revenue, cost, and risk?
• Are we organised for proactive and impactful IP management? Do we have the right stakeholder interfaces?
• Do we have the capabilities and skillsets needed to execute effectively?

Without clear answers to these questions, patent departments in consumer goods companies may struggle to compellingly articulate the value of patents and their contribution to technology-based competitiveness. This increases the likelihood of being seen primarily as cost centres, making it difficult to secure appropriate investment. Ultimately, companies may face misalignment between their business and technology ambitions, falling short in protecting and capitalising on them.