Vietnam Compound Feed Market- Trend Analysis & Forecast to 2030

The compound feed market in Vietnam was valued at US$ ** billion in 2023, with production volumes reaching ** million tonnes. The market is expected to expand at a compound annual growth rate (CAGR) of **% from 2020 to 2030. Vietnam’s compound feed market is witnessing robust growth driven by rising demand from the livestock sector, advancing feed manufacturing technologies, and expanding trade activities. As production scales up, the market is expected to witness consistent growth, though infrastructure and input price fluctuations present challenges.

Market/ Product Overview

The Vietnam compound feed market is steadily expanding, driven by increased livestock farming and dietary shifts toward animal-based proteins. With economic growth and urbanization, demand for meat, dairy, and aquaculture products has surged. The Vietnamese compound feed industry plays a crucial role in supporting commercial livestock farming by providing formulated nutrition for livestock. Recent developments include enhanced feed formulations and diversification into aquaculture feed to support the seafood industry, a key export sector for Vietnam. Projected to grow annually, the compound feed industry will be pivotal for Vietnam’s agricultural economy, reinforcing both local and international livestock trade channels.

Vietnam Commercial Livestock Farming and Animal Feed Production and Consumption Trend

Commercial livestock farming in Vietnam has seen a rise in intensive farming practices, focusing on efficiency and productivity. Poultry, swine, and aquaculture are leading the livestock sectors, with a significant portion of feed demand derived from these industries. The government’s push for livestock modernization, along with the private sector’s investment in large-scale farming, supports this upward trend. Innovations in feed composition and disease management in livestock further encourage growth in the compound feed sector.

The production and consumption of animal feed in Vietnam have experienced remarkable growth, supported by an expanding livestock sector. Compound feed production now prioritizes high-protein and specialized formulations to meet the nutritional requirements of different animal species. Consumption is predominantly concentrated in regions with intensive farming activities, such as the Red River Delta and the Mekong Delta. Increased demand for poultry and pork drives feed consumption patterns, with a notable shift towards aquaculture feed due to Vietnam’s strong seafood export market.

Vietnam's demand for animal feed is driven by rapid urbanization, higher disposable incomes, and shifting consumer preferences towards protein-rich diets. The growth of organized retail and fast-food sectors also boosts demand for meat products, increasing the need for quality animal feed. The government's supportive policies for agricultural productivity and the expansion of intensive livestock farming methods add to the growth. Additionally, Vietnam’s role as a key seafood exporter encourages the growth of aquaculture feed demand, further supporting the compound feed market.

Vietnam Compound Feed Production & Demand Trend

Production and demand for compound feed in Vietnam continue to grow, in line with the increasing demand for meat and seafood. The feed industry has adapted to changing livestock and aquaculture needs, developing specialized feed products for different species. Production capacity has increased in response to demand from the poultry and swine sectors, as well as aquaculture. As Vietnam's economy advances, demand for high-quality and protein-rich feed formulations is expected to strengthen, driving future production growth in compound feed.

Key ingredients in Vietnam’s compound feed include maize, soybean meal, fish meal, rice bran, and cassava. Maize and soybean meal are primary protein and energy sources for poultry and swine feed. Rice bran, abundant in Vietnam, serves as a cost-effective feed for both livestock and aquaculture. Fish meal is widely used in aquaculture feed, supporting the high-protein requirements of the seafood industry. The heavy reliance on imports for maize and soybean meal, however, exposes the market to global price fluctuations.

Vietnam Compound Feed Market Growth Factors

The growth of the Vietnam compound feed market is fueled by rising domestic demand for livestock products and the need for efficient feed formulations. Technological advancements in feed processing enhance the nutritional value and digestibility of feed, contributing to higher production efficiency in livestock farming. Increased awareness of the benefits of balanced diets for livestock health further propels the market. Government initiatives to modernize agricultural practices, reduce feed wastage, and improve supply chain efficiencies also support the growth of the feed industry, ensuring that it can meet future demand sustainably.

Vietnam Compound Feed Market Restraints & Challenges

Challenges in the Vietnamese compound feed market include fluctuating input prices, especially for imported maize and soybean meal, which heavily impact production costs. Limited infrastructure in rural areas hampers efficient feed distribution, adding to logistics costs. Additionally, the industry faces competition from low-cost traditional feed methods, which are still prevalent among small-scale farmers. Disease outbreaks in livestock can disrupt feed demand patterns, as witnessed during swine flu outbreaks. Moreover, environmental regulations on feed production and waste management place additional pressure on the industry.

Vietnam Compound Feed Industry: Supply Chain Constraints and Value Chain Challenges

Supply chain constraints in the Vietnamese compound feed industry include limited domestic production of key raw materials, resulting in dependency on imports. Price volatility in the global markets for maize and soybean increases feed production costs, creating challenges for local producers. The transportation infrastructure, while improving, still limits efficient feed distribution across rural farming areas. Value chain challenges include maintaining feed quality across distribution networks and managing supply-demand imbalances during seasonal changes in livestock production, impacting the industry’s profitability.

Vietnam Trend of Compound Feed Demand & End-Use Livestock Type

Demand for compound feed is strongly associated with poultry, swine, and aquaculture, which are the primary livestock types in Vietnam. Poultry feed accounts for a significant share due to the widespread consumption of chicken meat. Swine feed demand also remains high, driven by the popularity of pork in Vietnamese cuisine. Aquaculture feed is growing in demand, particularly for catfish and shrimp farming, which contribute significantly to Vietnam's seafood exports. Each livestock category requires specialized feed formulations, reflecting the diverse and evolving demand within the sector.

Vietnam Compound Feed Trade (Export & Import) Trend

Vietnam imports a substantial portion of its raw feed materials, primarily maize and soybean meal, from countries like the United States, Brazil, and Argentina. The dependency on imports is due to limited domestic production capacity for these essential ingredients. While feed exports are limited, the country exports aquaculture feed, capitalizing on its expertise in fish farming. Trade dynamics are influenced by global price shifts, logistics costs, and currency fluctuations, which impact the competitiveness of Vietnam’s compound feed sector. Recent efforts to expand maize cultivation aim to reduce import reliance over the coming years.

In 2023, Vietnam exported compound feeds worth US$ 337.89 million and imported compound feeds valued at US$ 661.54 million. Key export destinations for Vietnam's compound feeds included Malaysia, Cambodia, the Philippines, and India.

Vietnam Compound Feed Market Competitive Analysis

The Vietnamese compound feed market is highly competitive, with a mix of local and international players. Large multinational corporations dominate due to their capacity to meet high demand, while local companies compete on cost and flexibility. Leading firms have expanded their product portfolios to cater to various livestock categories, ensuring they remain competitive in a dynamic market. The competition extends to raw material sourcing, with companies investing in regional supply chains to mitigate import risks. Innovations in feed formulations and processing technology also serve as differentiators in the competitive landscape.

List of Key Companies in Vietnam Compound Feed Market (Manufacturers/Suppliers/ Exporters),

■ Cargill Vietnam Co., Ltd.
■ De Heus LLC
■ Charoen Pokphand Vietnam Co., Ltd.
■ GreenFeed Vietnam Corporation
■ Japfa Comfeed Vietnam Ltd.
■ New Hope Group Vietnam
■ Proconco Vietnam
■ Vinafood Group
■ CJ Vina Agri Co., Ltd.
■ Dabaco Group
■ Masan MEATLife Corporation
■ Tien Giang Animal Feed Joint Stock Company
■ Vina Agri International Co., Ltd.
■ BIOMIN Vietnam Co., Ltd.
■ Anova Feed

Future Outlook

The Vietnamese compound feed market is projected to grow as livestock demand rises, driven by urbanization and rising incomes. The focus on specialized feed formulations, along with the government’s support for sustainable agricultural practices, bodes well for future expansion. However, supply chain improvements and investment in domestic ingredient production are crucial to stabilizing costs. Technological advancements in feed production are expected to bolster efficiency, further enhancing Vietnam's role in the global livestock and aquaculture supply chain.