Vietnam DDGS Feed Market- Trend Analysis & Forecasts

Market/ Product Overview

Vietnam has emerged as one of Southeast Asia’s fastest-growing feed markets, recording a total industrial feed output of 22–23 million tonnes in 2023, which reflects an increase of nearly 18% from 2020 levels. This growth has directly influenced demand for feed ingredients such as distillers dried grains with solubles (DDGS), which are increasingly utilized to reduce feed production costs by up to 12–15% per ton compared to traditional corn-soy formulations. As global ethanol production continues to generate a consistent DDGS output—estimated at ** million tonnes annually—Vietnam remains heavily dependent on imports to meet domestic feed formulation needs, with local suppliers contributing less than 3% of total DDGS availability.

The market’s growth is strongly tied to Vietnam's livestock dynamics, particularly the swine and poultry sectors, which together represent over **% of feed consumption nationwide. Swine feed demand alone reached ** million tons in 2024, intensifying the search for protein- and energy-rich feed additives such as DDGS. The price competitiveness of DDGS has been a major advantage, with the 2024 landed cost averaging US$ 285–320 per ton, compared to imported corn at US$ 320–350 per ton and soybean meal at US$ 470–520 per ton during the same period. This substitution effect has allowed feed mills to maintain stable profit margins despite volatile global grain markets.

Clear shifts in livestock farm structure—from smallholders to larger integrated operations supplying over **% of commercial feed demand—are driving more consistent purchases of DDGS. With Vietnam’s total animal feed production expected to reach ** million tonnes by 2030, the DDGS feed market is positioned for steady expansion through the next decade.

Significance of Vietnam in Global DDGS Feed Supply Chain

Vietnam has become a strategic market within the global DDGS supply chain, consistently ranking among the top five importers worldwide, with annual purchases exceeding 1.8–2.2 million tonnes since 2021. This makes Vietnam an essential destination for major DDGS-producing countries such as the United States, which exported nearly US$ 780 million worth of DDGS to Vietnam in 2023. This trade volume represents around 14–15% of global DDGS exports, highlighting Vietnam’s critical role in maintaining international DDGS demand stability.

Vietnam’s expanding livestock and aquaculture industries, which collectively contribute over US$ 16 billion to national agricultural GDP, rely heavily on competitively priced feed inputs. With domestic corn production capped at 4.5–4.8 million tonnes annually and soybean production under 50,000 tonnes, Vietnam faces an annual feed ingredient deficit exceeding 20 million tonnes, creating a strong import dependency. DDGS has become a strategic solution to this supply gap, replacing up to 10–12% of corn and 6–8% of soybean meal in many feed formulations.

Vietnam’s advanced port infrastructure—particularly in Ho Chi Minh City, Hai Phong, and Cai Mep—supports large-volume DDGS shipments, with bulk carrier unloading capacities exceeding ** tonnes per vessel. This operational efficiency enhances Vietnam’s attractiveness for exporters seeking consistent market access. By 2032, the country’s share of global DDGS imports may rise to 17–18%, underscoring its deepening significance in international feed trade flows.

Vietnam DDGS Feed Supply & Demand Trend

The supply side of Vietnam’s DDGS market is overwhelmingly import-driven, as local ethanol production—estimated at only 150–180 million liters annually—generates insufficient DDGS. Domestic DDGS output rarely exceeds ** thousand tonnes per year, which meets less than 3% of total demand, necessitating heavy reliance on foreign producers. Supply availability from global producers, particularly the U.S. ethanol industry, remains strong, with U.S. DDGS production reaching over 38 million tonnes in 2023, ensuring reliable export flow to Asian markets including Vietnam.

On the demand side, Vietnam’s animal feed consumption has been growing at 4–6% annually, driven by an expanding livestock population and increasing industrialization of feed mills. Swine feed—accounting for more than **% of total feed demand—continues to dominate DDGS usage, consuming ** million tonnes in 2024. Poultry feed represents the second-largest consumer segment, absorbing around ** thousand tonnes, while aquaculture feed adds a further ** thousand tonnes, particularly for catfish and shrimp operations targeting annual export revenues of US$ 4.5–5 billion.

The price elasticity of DDGS demand is notably strong, as DDGS often trades at 20–30% lower price levels than soybean meal. When global corn prices surged to US$ 330–360 per ton in 2022, DDGS consumption in Vietnam jumped by 12%, underscoring its role as a cost-efficient feed ingredient. Looking ahead, demand is expected to surpass ** million tonnes by 2032, driven by an expanding feed industry projected to reach US$ ** billion in annual value. Supply reliability from the U.S., India, and European ethanol plants will be crucial to meeting Vietnam’s growing needs.

Vietnam DDGS Feed Market Growth Factors

Vietnam DDGS Feed Market Segmentation

Vietnam’s DDGS market can be understood through segmentation by animal type, feed mill type, sourcing patterns, and regional consumption patterns.

By animal type, swine feed is the dominant DDGS end-use segment, with usage estimated at about ** million tonnes in 2024, driven by Vietnam’s pork sector, which supplies over **% of national protein intake. Producers typically include 10–25% DDGS in feed formulations, substituting corn and soybean meal and cutting feed costs by 8–12%. With commercial hog farms scaling up, swine-related DDGS demand is projected to rise to around ** million tonnes by 2030.

The poultry feed segment absorbed ** thousand tonnes of DDGS in 2024, reflecting growing broiler and layer populations. Poultry feed mills typically use DDGS at inclusion rates of 6–10%, although recent feed trials suggest rates up to 12% may be viable for broiler diets. Growth in poultry meat production, which reached 1.8 million tonnes in 2024, continues to support DDGS uptake.

Aquaculture feed is the fastest-growing segment proportionally, consuming ** thousand tonnes in 2024 and expected to expand at 6–7% per year through 2032. Vietnam’s catfish exports, valued at US$ 1.7 billion in 2023, rely on energy-rich diets that increasingly incorporate DDGS as a cost-effective option. Shrimp feed, which saw production exceeding ** million tonnes, also uses DDGS selectively, particularly for certain grow-out diets.

Feed mill segmentation reveals that industrial integrated feed mills, operated by multinational companies and large domestic players, control more than **% of DDGS consumption. These mills purchase DDGS in bulk shipments of ** thousand tonnes, enabling economies of scale. Medium-scale mills account for **% of demand, while small mills and local distributors handle the remaining share.

Geographically, southern Vietnam consumes over **% of total DDGS imports, driven by the concentration of feed mills in Dong Nai, Binh Duong, Long An, and Ho Chi Minh City. Northern Vietnam represents around **% of the market, while central regions contribute the remaining **%, influenced by lower livestock density and limited port infrastructure.

Vietnam DDGS Feed Trade (Export & Import) Trend

Vietnam is a major importer of DDGS, with annual import volumes ranging from 1.8 to 2.2 million tonnes since 2021. The United States remains the dominant supplier, shipping over **% of Vietnam’s total DDGS imports, valued at US$ ** million in 2023. Secondary suppliers include India, China, and select European ethanol producers, contributing between 150,000 and 250,000 tons collectively.

Vietnam maintains zero import tariff on DDGS, making it highly attractive compared to other feed ingredients that face tariffs between 2% and 5%. This zero-tariff status has been a key driver in maintaining stable and competitive feed costs. Logistical efficiency is further supported by major ports such as Cai Mep–Thi Vai, which handled over 120 million tonnes of cargo in 2023, enabling efficient DDGS unloading and distribution.

Export activity for DDGS from Vietnam is minimal, reaching less than 5,000 tonnes annually, primarily from small ethanol producers supplying neighboring markets. The country instead serves as a net importer with a growing trade deficit in feed ingredients exceeding US$ 4.5 billion annually, reflecting its structural reliance on global suppliers.

Freight and logistics play an essential role in trade dynamics. Bulk DDGS shipments from the U.S. Gulf and Pacific Northwest to Vietnam typically cost US$ 45–65 per ton, fluctuating with fuel prices and vessel availability. Importers must also factor in port handling costs of US$ 8–12 per ton and inland logistics costs of US$ 5–9 per ton, depending on distance from the port to the feed mill.

Key trade partners include major U.S. exporters such as POET, Valero, ADM, and Cargill, each holding between 10–20% of Vietnam's total DDGS imports. India’s ethanol industry is emerging as a potential alternative supplier, with DDGS exports increasing 18% year-on-year due to expanding biofuel mandates. However, supply consistency and nutrient variability remain concerns for Vietnamese feed mills considering non-U.S. suppliers.

Influence of Vietnam in Global DDGS Feed Price

Vietnam’s large and consistent import volume gives it a modest but notable influence on global DDGS prices, especially in Asia-Pacific markets. With annual imports exceeding 2 million tonnes, Vietnam accounts for nearly 15% of global DDGS trade, meaning fluctuations in its purchasing behavior can affect regional price benchmarks. For instance, when Vietnam increased its import bookings by 12% in 2022, regional DDGS prices rose by US$ 8–12 per ton, reflecting tighter supply for competing buyers in Indonesia, Thailand, and South Korea.

Historical import prices for DDGS in Vietnam have ranged between US$ 230 and 340 per ton from 2018 to 2024, influenced by global grain market volatility and freight rate fluctuations. During the peak of global shipping disruptions in 2022, DDGS landed prices in Vietnam hit US$ 360 per ton, the highest in six years, before stabilizing to US$ 285–320 per ton in 2024 as freight markets normalized. Domestic wholesale prices typically include a margin of US$ 15–20 per ton for distributors, depending on storage and handling costs.

Vietnam’s growing role as a price-sensitive buyer contributes to market balancing. When corn and soybean meal prices increase—such as the 30% surge in corn prices in 2021—Vietnam tends to shift more aggressively toward DDGS, reinforcing its demand-driven pricing impact. Conversely, when DDGS prices rise beyond 75–80% of soybean meal prices, substitution declines, reducing Vietnam’s import momentum and easing global prices.

As Vietnam’s DDGS demand heads toward ** million tonnes by 2032, its influence on global and regional DDGS market prices is likely to intensify, especially in Southeast Asia.

Market Competitive Landscape

Future Outlook

The long-term outlook for Vietnam’s DDGS feed market remains robust, with demand projected to grow at a CAGR of **% from 2025 to 2032, reaching nearly ** million tonnes by the end of the forecast period. This expansion will be supported by a livestock sector expected to grow 4–5% annually, a feed industry likely to reach US$ ** billion in value, and increasing cost pressures that push feed mills toward more economical ingredients. Even with moderate global grain price stabilization, DDGS is expected to remain 20–25% cheaper than soybean meal, ensuring competitive substitution in feed formulations.

Supply security from major exporters—particularly the United States, which is projected to maintain annual DDGS output above ** million tonnes—will sustain consistent availability for Vietnam. Domestic ethanol policy reforms may gradually increase local DDGS production, but output is unlikely to exceed 150 thousand tonnes by 2032, meaning Vietnam will remain import-dependent for the foreseeable future.

With ongoing investments in port modernization, automation, and feed mill capacity, Vietnam is positioned to strengthen its role in global DDGS trade. By 2032, the country may account for 17–18% of global DDGS imports, reinforcing its influence on regional price dynamics and trade flows. Overall, the Vietnam DDGS feed market represents a strategic growth opportunity for global suppliers, supported by strong demand fundamentals and increasingly sophisticated feed manufacturing practices.