Vietnam Compound Feed Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Vietnam Compound Feed Market Growth

Key drivers of the market include a growing livestock industry, a rising population, and an increase in income levels. As the number of livestock in the country increases, the demand for compound feed also goes up. Vietnam’s livestock sector is rapidly growing and accounts for 1/4th of the country’s GDP. In the year 2022, the total output of Vietnam’s livestock was estimated at USD 21 billion, with an increase of 5-6% from 2021. Vietnam is also among the countries with the greatest amount of pork production across the globe and more than 4.19 billion tons of pork was produced in the country in 2021.

The rising population of the country also drives the growth of the Vietnam compound feed market. When the population increases, the requirement for food also sees a boom. Pork and poultry have been the most popular food products in Vietnam. This is because they are affordable and easily available across the country. In addition to meat, the market is seeing an increase in the use of other animal products like milk and eggs, which creates an urgent need for compound feed production to keep up with the rising demand for food. Vietnam had spent over USD 4.27 billion on animal feed and raw materials imports in 2023 due to the significant growth in demand, suggesting that the market has potential.

As per the Vietnam compound feed industry analysis, the need for compound feed for various livestock is being driven by the growing need for proper nutrition for animal development. Compound feed consumption has expanded as a result of the expansion of domestic and international food and restaurant chains, the growth of the organised cattle industry in developing nations, and growing awareness of precision nutrition techniques.

Key Trends and Recent Developments

Rising exports to China, increasing demand for animal husbandry products, government targets to raise production capacity, and investment in aqua feed have accelerated the Vietnam compound feed market value.

March 2024

Netherlands-based De Hues has established a new shrimp feed mill in Vinh Long province in Vietnam to cater to the demand of local Shrimp farmers. The mill has an overall capacity of 50,000 metric tonnes, spanning over an area of 29,300 square meters. It is equipped with state-of-the-art technology adhering to international standards.

January 2024

American multinational company opened a new Provimi Premix plant in South Vietnam to enhance the access of quality compound feed to the local livestock farmers. The plant was inaugurated in September 2023, with 40,000 tonnes of annual production capacity, a 100% increase from the preceding plant in the same region. The plant is equipped with warehousing facility and state-of-the-art processing technology.

June 2023

Pilmico and Gold Coin, the food and agriculture business subsidiary of Philippines-based Aboitiz Group has invested nearly USD 51 million within a 12-month duration to expand production through a newly established animal feed mill in Long An Vietnam. The mill is estimated to have a production capacity of nearly 200,000 metric tons, expandable to 300,000 metric tonnes during peak demand seasons, thus influencing the compound feed demand forecast.

May 2023

Japfa Comfeed Vietnam, a leading producer of compound feed in the country inaugurated a new mill in southern Binh Phuoc province of Vietnam to cater to the local rise in demand. The mill is equipped with ultra-modern technology, a cold storage for preservation, a wastewater, and exhaust gas treatment system to reflect its commitment towards sustainable and quality animal feed production. 

Rising Chinese Imports Increases Vietnam Compound Feed Market Revenue

China is the largest importer of compound animal feed from Vietnam, and accounts for 40.7% of Vietnam’s total export turnover. Vietnam’s proximity to China is a major reason for the same. With imports further rising from the country Vietnam is expected to witness an increase in export revenue in the upcoming years.

Rising Demand for Animal Husbandry Products Propels Growth of the Vietnam Compound Feed Market

The drastic increase in Vietnam’s population is a major cause for boost in demand of animal husbandry products, thereby resulting in positive growth of the market. The United Nations Population Fund (UNFPA) projects the population to further grow, reaching 104 million by 2029. Animal husbandry is expected to meet the rising food demand, directly impacting the compound feed market growth in the long run.

Government Targets to Achieve High Animal Feed Production Creating New Market Opportunities

To meet the growing demand for compound animal feed, the Vietnam government has targeted an increase in overall production capacity to be around 45 million tonnes with actual production reaching nearly 32 million tonnes by 2030. Further, the government has also directed the conversion of unproductive agricultural land to land for growing animal feed, with an objective of reserving 1 million hectares by 2030. These directives and targets will create new Vietnam compound feed market opportunities for both public and private sector.

Investment in Aqua Feed Will Create New Demand for Animal Feed Market

Aquafeed is one of the untapped markets for Vietnam compound feed industry. It has high potential to lead the industry’s growth in the upcoming years. Major market players have already realised this potential and have entered the market eyeing future growth. For instance, Netherlands-based animal nutrition company De Heus, which established 4 million tonnes of animal feed production capacity in Vietnam by acquiring its leading producer MNS feed, has opened a new aqua feed mill, Can Thom, dedicated to producing pangasius compound feed.

Vietnam Compound Feed Industry Segmentation

‘Vietnam Compound Feed Market Report and Forecast 2024-2032’ offers a detailed analysis of the market based on the following segments:

Market Breakup by Animal Type

• Ruminants
• Poultry
• Swine
• Aquaculture
• Others

Market Breakup by Ingredient

• Cereals
• Cakes and Meals
• By-Products
• Supplements 
  • Vitamins 
  • Amino Acid
  • Enzymes 
  • Prebiotics and Probiotics 
  • Acidifiers

Market Breakup by Source

• Plant Based
• Animal Based

Market Breakup by Form

• Pellets
• Mash
• Crumbles
• Others

Market Breakup by Region

• Southeast
• Red River Delta
• Mekong River Delta
• South Central Coast
• Others

Vietnam Compound Feed Market Share

According to the reports, plant-based compound feed is expected to grow at a CAGR of 3.4% between 2024 and 2032. While previously the feed did often include animal derivatives like fish meal, switching to plant-based products alone is beneficial for a lot of different reasons. Plant-based feeds are more pocket-friendly. These are also better for the environment since they help avoid environmental concerns such as overfishing. Furthermore, using plant products helps minimize the risk of spreading diseases among the livestock.

Leading Companies in Vietnam Compound Feed Market

The market players are increasingly incorporating additives in the feed in order to increase its nutritional value.

• Cargill Inc.
• Archer-Daniels-Midland Co.
• Alltech Inc.
• C.P. Pokphand Co. Ltd.
• Roquette Freres S.A.
• SHV Holdings N.V. (Nutreco)
• Land O’Lakes, Inc. (Purina)
• De Heus Voeders B.V.
• New Hope Group
• Lai Thieu Cattle Feed Co., Ltd. 
• Others