The Pet Market – A Perspective for Mergers and Acquisitions

The pet industry is one of the most dynamic sectors in the world, with growth expectations at rates of 5 to 6 percent per year.

Among the major countries that operate in the pet market, Brazil stands out in third place, reaching US $ FOB 236.3 million in exports in this sector in 2016, according to consolidated data from the Brazilian Association of the Animal Products Industry .

Even facing turbulence due to the Brazilian economic crisis, the sector has stood out among the main theses of investment for renowned funds in the country. The appetite for the segment is justified by the growth potential of the pet market in Brazil, which has grown by more than 10% per year over the last two decades.

Although the result is significant, the sector is still far from achieving the maturation of other countries, such as the Europeans and the Americans, which represents opportunities for companies operating in this area and reflect a context especially favorable to businesses of this nature.

In this environment, growth opportunities from an inorganic process, through the acquisition of strong rivals, may be a great strategy for companies that wish to start an investment cycle.

Evaluating potential sources of synergy can be a great strategy to protect against competitors, diversify products and can still guarantee operational gains that will enhance the brand and the company.

Andressa Lucas de Freitas

Market intelligence

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