As the pet food industry continues to navigate economic uncertainty in 2025, some companies are beginning to seek ways to optimize production systems and control costs.
Petfood Industry polled website visitors about their companies' approaches to production cost management and optimization. The survey revealed that 29% of respondents said their companies had reduced production costs in the past year, while 14% indicated they were currently evaluating cost-reduction options. Just over half of respondents (51%) selected "not sure/not applicable," and 5% said their companies had not needed to make changes.
Optimization focus areas
When asked about optimization focus areas, manufacturing efficiency emerged as the top priority, with 41% of respondents indicating their companies were concentrating on process improvements and automation.
Formulation optimization, including reformulation and ingredient substitution, was the focus for 20% of respondents, while 14% reported their companies were prioritizing supply chain and sourcing improvements. Nearly one-quarter (24%) said their companies were not currently focusing on optimization.
Technology and practices for production efficiency
Among companies using technology to enhance production efficiency, automation and equipment upgrades were most common, cited by 58% of respondents.
Data gathering and analysis came in second at 32%, followed by operator training and workforce development at 27%. Adoption of artificial intelligence and machine learning solutions remained relatively limited, with just 12% reporting use of these technologies.
Future investment outlook
Looking ahead, 37% of respondents said their companies were very likely to invest in optimization initiatives in the next 12-18 months and were already planning projects.
Another 30% indicated their companies were somewhat likely to invest and were exploring options. Just 14% said investment was not likely at this time, while 19% said optimization initiatives were not applicable to their business.
Survey methodology: Data collected October 6-20, 2025, from 300 pet food industry professionals via Petfoodindustry.com polling platform.
3 Top Takeaways
1. Strong momentum for optimization investment despite mixed current action
While only 29% of companies have already reduced production costs, two-thirds (67%) indicate they are very or somewhat likely to invest in optimization initiatives within the next 12-18 months. This suggests the industry is entering an acceleration phase for efficiency improvements, with companies moving from evaluation to implementation. The gap between current action and future intent signals a wave of optimization projects to come.
2. Manufacturing efficiency and automation dominate optimization strategies
Manufacturing efficiency is the clear priority, capturing 41% of optimization focus — more than double the attention given to formulation (20%) or supply chain improvements (14%). This emphasis is reinforced by technology choices, with automation and equipment upgrades leading at 58% adoption. The industry is betting on operational improvements and mechanization rather than ingredient reformulation or sourcing changes as the primary path to cost control.
3. Advanced technology adoption lags far behind traditional automation
A significant technology gap exists in the industry: while 58% of companies use automation and equipment upgrades, only 12% have adopted AI or machine learning solutions. This 46-percentage-point gap reveals that the pet food industry remains in early stages of digital transformation. Companies are still focused on foundational automation rather than advanced predictive analytics or intelligent systems, suggesting an untapped potential competitive advantage through emerging technologies.
Learn more about optimizing your pet food business at Petfood Essentials 2026!
Petfood Essentials 2026 will center on "Efficiency unleashed: Optimizing your pet food business," addressing the need for pet food and treat companies to operate cost-effectively amid ongoing economic uncertainty.
The interactive educational seminar, which will be held April 27, 2026, the day prior to Petfood Forum, will feature experts providing practical guidance on controlling costs, streamlining operations, optimizing formulations and supply chains, and improving manufacturing efficiency through various tools and technologies, including artificial intelligence.
Petfood Forum and Petfood Essentials show dates are April 27-29, 2026, in Kansas City, Missouri, U.S. To stay informed on the latest event developments, go to PetfoodForumEvents.com. Teams of 3 or more can receive special group discounts. Email [email protected] for your promo code.
