An unprecedented study by the Instituto Locomotiva, commissioned by the Instituto Caramelo, reveals that the majority of Brazilians fear that the potential merger between the country's two largest pet store chains, Petz and Cobasi, could lead to excessive market concentration and, consequently, price increases for consumers. According to the survey, 77% of respondents believe that when few companies dominate a sector, the prices charged tend to rise. Only 17% consider that they would remain the same, and 6% anticipate a potential reduction.
The results also indicate a potential impact on animal welfare: 84% of respondents believe that price increases for pet products and services could lead some of the population to abandon their pets. Of this total, 34% state that this would “certainly” occur, and 50% believe it would be “probable.”.
"The data reveals a profound social aspect. Brazilians have built a strong emotional bond with their animals, but this coexistence depends on an accessible market. When costs rise beyond what is possible, the impact is no longer just economic but becomes emotional," analyzes João Paulo Cunha, Research Director at Instituto Locomotiva.
Among the respondents, 67% assess that a potential union between the two companies would pose a risk of creating a monopoly, concentrating the market for pet products and services in few hands. The perception of risk to competition is consistent: even when the question about a merger is asked without naming the companies, but indicating that they are the two largest in the sector, 72% believe the market would tend to move towards a monopoly situation.
"The numbers show that the Brazilian consumer has a sophisticated understanding of market dynamics. There is an awareness that competition is what ensures fair prices and variety. When this balance is lost, the feeling of economic vulnerability grows," explains Cunha.
Instituto Locomotiva conducted the quantitative research via digital self-completion with one thousand interviews answered by Brazilians, men and women, aged 18 and above, and residing in all regions of the country. Data collection took place between October 15 and 28, 2025, and the results have a margin of error of 3.1 percentage points.
"We commissioned the study to broaden the public debate and give visibility to what consumers really think about the topic. Our focus is always animal welfare, which also involves the economic sustainability of families and the businesses that care for and protect pets in Brazil," states Marília Lima, technical lead at Instituto Caramelo.
Since the merger was announced, Instituto Caramelo has been warning about the risk of a monopoly in the pet sector, which, according to the organization, harms business plurality and the sustainability of animal protection initiatives. The national survey is part of the campaign #NoToPetMonopoly, which has already received support from over 16,000 people, reinforcing the need for a rigorous assessment by Cade. To join the mobilization, simply visit the campaign website and sign the manifesto.
The merger between Petz and Cobasi remains under review by the Administrative Council for Economic Defense (Cade). The General Superintendence of the body had issued an opinion in favor of the operation without imposing restrictions, but the process was expanded after competitors and suppliers raised concerns about the potential effects of market concentration in the sector. Cade is now gathering additional information to assess the impact of the transaction on prices, access to supplies, and diversity of offerings: key points in a rapidly expanding market with strong appeal among Brazilian consumers.
