Growing Market
The Brazilian Pet Market is in strong growth as a result of the increase of urban areas and the verticalization of housing. There is currently an increase in people living alone and couples planning when they will have children.
Today, animals are living indoors and are considered members of the family. This humanized relationship with animals drives a whole chain of necessary products and services.
Despite being the third-largest market in the world, in Brazil, the Pet Market is still far from reaching the maturity of markets such as the United States and European countries.
Although 80% of pet shops are neighborhood stores, there are currently three pet shop chains that seek to stand out, namely Petlove, Petz, and Cobasi. A brief description of the three follows:
1 - In 2020, the company Petlove received two contributions: one of R$ 250 million (about US$ 50 million) from Softbank and another of R$ 125 million (about US$ 25 million) from the private equity fund L. Catterton. It also bought Vetus (a pet shop and clinic management company) and announced the merger with the DogHero hosting platform.
2 - The company Petz, created in 2002, already has 138 stores and 116 veterinary centers in 15 states. In 2020, it earned BRL 1.7 billion (about US$ 340 million) – an increase of 46.6% compared to 2019. Digital sales reached more than BRL 395 million (about US$ 70 million). It also made history as the first Brazilian company in the pet segment to go public on the stock exchange. Since its public offering in September 2020, the shares have appreciated by almost 47%.
3 - Cobasi, which has been on the market for 39 years, has 112 units in 11 states. The company earned R$ 1.5 billion (about US$ 300 million) in 2020 – e-commerce was responsible for 25% of this total. In April of 2020, it received a contribution of R$ 300 million (about US$ 60 million) from the Kinea Private Equity fund and the following month announced the acquisition of Pet Anjo, a company that offers accommodation, daycare, babysitting, and dog walking services.
The manufacturing segment of products such as toys, accessories, and clothing is still carried out by several medium and small factories, and there is still not a large company that stands out in this sector. It is in this sector that this project focuses, using strategies to reduce the cost of production, making the products extremely competitive.
The Brazilian Pet Market, despite being the third-largest market in the world, is promising because its production chain is still being structured, becoming a great market to invest in.