i‑Tail Corporation PCL (SET: ITC), a global leader in the pet food industry, outlined its strategy to sustain competitiveness and deliver 9-12% revenue growth in 2026 (in U.S. dollar terms). Faced with an increasingly complex operating environment, the company is relying on four strategic growth engines: product innovation, automation and efficiency, geographic expansion, and sustainability.
Roy Chan, Chief Executive Officer of i‑Tail Corporation PCL, stated, “Global conflicts, trade barriers, and rising energy costs are challenging export businesses like ours. To navigate this environment, we are reinforcing our core fundamentals—focusing on what matters most to customers: competitive pricing, reliable service, and consistent quality. Achieving double-digit growth in 2026 means we must rapidly innovate, improve efficiency through automation, expand globally, and make sustainability a key strength. These steps allow us to manage risks and seize opportunities from increased pet ownership, pet humanization, and demand for premium, health-focused nutrition.”
The Four Strategic Growth Engines of i-Tail
1) Innovation to Capture Fast Growing Segments
Product innovation enables i‑Tail to capture high-growth, premium segments where demand remains relatively resilient despite a volatile environment. While broader consumer spending is under pressure, demand for premium and functional pet nutrition continues to grow.
i-Tail targets product innovation to contribute 15% of total revenue by the end of 2026, driven by co-creation with global customers and supported by its broader innovation ecosystem. In the first quarter of 2026, the company launched 213 product-innovation SKUs, further expanding its innovation pipeline. Pet treats accounted for 21% of total sales, nearly doubling year-on-year, reflecting continued momentum in more differentiated, format-driven, and higher-value offerings, while the premium mix remains strong within the 52–53% range.
Building on this foundation, i‑Tail is working alongside global brands to pioneer next-generation pet nutrition. This includes innovative cat treat formats that combine functional benefits with an enhanced feeding experience, moving beyond traditional sachets.
2) Automation and Efficiency for Supply Chain Resilience
Automation and operational efficiency are strengthening supply chain resilience, enabling i-Tail to respond more quickly and flexibly across its operations. To support this, the company continues to invest in automation and AI, enhancing quality, efficiency, and delivery through fit-for-purpose solutions. Automation currently supports around 25% of production.
Beyond operational efficiency, automation, including AI-assisted technology, also plays a critical role in strengthening profitability. It enhances profitability and helps protect margins during market volatility. This is reflected in i‑Tail’s strong financial performance, with a gross profit margin of 24.3% in the first quarter of 2026.
i‑Tail also leverages Thai Union Group’s procurement capabilities to support cost competitiveness and supply security. By sourcing from a diversified supplier base, it ensures reliable access to key materials while reducing supply risk and strengthening resilience across its global supply chain.
3) Winning Across Markets with Targeted Strategies
Winning across markets requires a deep understanding of local dynamics and how each market responds to volatility. With almost all revenue generated from export markets, i‑Tail serves global customers through a model that combines commercial proximity with localized capabilities, enabling stronger service, reliability, and speed to market.
In the Americas (60% of revenue), i-Tail continues to scale its private-label portfolio, advance product innovation, and expand into larger segments such as chunks and pate. The company has built a strong presence anchored by US Pet Nutrition (USPN). Established over 15 years ago, USPN integrates localized importing, warehousing, and distribution to better serve customers and consumers in the region.
i-Tail is now replicating this proven model in Europe (15% of revenue), where the environment is more cost-competitive. Expanding beyond its existing commercial footprint, the company is building more integrated, localized supply-chain capabilities, while reinforcing its position through disciplined pricing and sustainability-led offerings, including packaging innovation and minimal processing. In Asia and Oceania (25% of revenue), i-Tail is reinforcing its position through disciplined pricing, strong service levels, and market-specific product strategies tailored to diverse consumer needs.
4) Commercializing Sustainability
Sustainability is increasingly shaping how global customers evaluate and select partners. For i‑Tail, it is a key lever to secure new business and create differentiated value—even amid pricing pressures. At the core of this is i‑Tail’s “From Source to Bowl” commitment, embedding responsible sourcing and traceability across the value chain. Leveraging Thai Union Group’s SeaChange® strategy and sourcing capabilities, i-Tail benefits from end-to-end visibility—from raw materials to finished products—delivering a level of transparency that goes beyond industry norms.
Through this, at least 99% of tuna sourced within Thai Union Group’s supply chain is traceable to the vessel or vessel group, with ongoing efforts to achieve full traceability. In addition, the group sources 99% of its tuna from fisheries that are MSC-certified, in assessment, or in credible improvement programs.
In parallel, i‑Tail is advancing its sustainability initiatives by applying a “head‑to‑tail” approach to unlock greater value from raw materials—transforming tuna co-products into high-value functional ingredients, which has enabled the company to achieve zero food loss across both factories in 2025. It has also reduced absolute greenhouse gas emissions (Scope 1 and 2) by 22% from a 2021 baseline, progressing toward a 42% reduction by 2030 and net zero by 2050.
“Building on our strategic priorities, we are well positioned to capture long-term growth opportunities, while continuing to create value for our customers and deliver high-quality, science-backed nutrition that supports the health and wellbeing of pets,” Roy Chan said.
