Vietnam Compound Feed Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 12.21 Billion |
| Market Size (2029) | USD 16.19 Billion |
| CAGR (2024 - 2029) | 5.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Compound Feed Market Analysis
The Vietnam Compound Feed Market size is estimated at USD 12.21 billion in 2024, and is expected to reach USD 16.19 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).
Livestock production across Vietnam has been expanding to support the needs of the changing diet patterns of the regional population. According to the General Statistics Office of Vietnam, poultry production reached 2.3 million metric tons in 2023, up from 2.1 million metric tons in 2022. Vietnam's demographic shifts, marked by a burgeoning middle class and rising incomes, have transformed dietary preferences, leading to heightened per capita consumption of meat and seafood. The increasing share of livestock in agricultural output, coupled with rising disposable incomes, significantly propels the country's compound feed market.
With the rising preference for diverse food options and heightened protein intake, demand is surging for higher-value foods like meat, eggs, and milk, outpacing that for plant-based items such as cereals. Rising health consciousness and increasing income levels are steering the population towards a protein-rich diet, bolstering the consumption of meat and other animal-derived products. This surge in demand for animal-based goods has, in turn, spurred livestock production. Employing innovative feeding methods and products, these livestock receive optimal nutrition and enhanced feed conversion ratios. In Vietnam, milk consumption has seen a notable uptick over recent decades, paralleling improvements in living standards, GDP per capita, and healthcare. Annually, Vietnamese consume approximately 2 billion liters of milk, with 30% being fresh and 70% reconstituted. Projections from Vietnam's General Statistics Office (GSO) indicate a 40% rise in per capita milk consumption, forecasting an increase from 28 liters in 2021 to 40 liters by 2030.
Vietnam's feed industry heavily relies on imports for key raw materials, including soybean, corn, oilseed by-products, and fish meal. In response, the Vietnamese government is actively pursuing strategies to cultivate domestic feed ingredients, aiming to lessen this import dependency. For instance, in 2023, the Vietnamese Ministry, in collaboration with the Department of Livestock Production and several corporations, initiated a joint production model for animal feed and its ingredients in the Central Highlands provinces. This initiative is designed to boost the sourcing of domestic raw materials and curtail the reliance on imported feeds. These strategies not only bolster the sustainability and self-sufficiency of Vietnam’s livestock sector but also propel market growth.
Besides, many prominent players are increasingly fulfilling the compound feed requirements in Vietnam, particularly in the livestock industry. As a result, the market is poised for growth in the coming years, driven by the expansion of production units by major players and a growing awareness of the benefits of protein and nutrient-rich feed components for animals.
Vietnam Compound Feed Market Trends
Cereals Dominate as the Largest Feed Ingredient
In the Vietnam compound feed industry cereals play a pivotal role as they consist of various nutritional components such as 21% to 27% of total dietary fiber, 12% to 16% of crude protein, and 18% to 22% of crude fat. Corn, barley, and sorghum are the significant cereal ingredients used in manufacturing compound feed.
Corn leads as the primary feed grain in Vietnam, accounting for 7.9 million metric tons followed by soybean meal at 6 million metric tons, feed wheat at 1.9 million metric tons, and many others, the Food and Agriculture Organization estimated. Along with corn, Vietnam is one of the leading importers of dry cereal flour and DDGS (fermented by-products) from the United States, driven by a resurgence in pork production, growth in beef and poultry sectors, and a booming aquaculture industry. Corn DDGS imports in 2022 reached 1.31 million metric tons, a 6 percent increase from 2021. According to traders and feed millers, feed wheat, barley, rice bran, and broken rice often substitute corn as energy sources in various feed formulations. Corn imports from Pakistan, Myanmar, and South Africa increased from 0.5 million metric tons in 2021 to 1.72 million metric tons in 2022.
Ducks are an important source of animal protein in Vietnam, particularly in the Mekong Delta, where over ten million are reared annually for both egg and meat production. Rice bran and polishings, derived from the country's staple food grain, are the traditional feed supplements for all classes of livestock. Grains make up about 80% of a quail's diet. Typical feeds for quails or game birds include cracked corn, various grains (barley, oats, rye, and wheat), and oat grouts, enhancing nutrient digestibility.
Moreover, in Vietnam, sorghum emerges as a promising alternative to cassava for providing starch in Pangasius feed. Sorghum contains a reasonable amount of protein (10%), higher than cassava. In 2020, the U.S. Grains Council (USGC) executed a sorghum feeding trial on Pangasius catfish at a private research farm in Vietnam. Results indicated that sorghum could replace cassava in Pangasius diets at a 20% inclusion rate, akin to corn's 10% rate, leading to improved body weight, a favorable feed/gain ratio, and reduced mortality.
Along with this, Vietnamese governmental bodies have rolled out initiatives to boost cereal incorporation in animal feed. For instance, in January 2021, Vietnam signed a deal with India, procuring 70,000 metric tons of 100% broken rice to satiate domestic feed production demands. Similarly, in 2021, the Department of Livestock Production launched projects aimed at bolstering the animal feed processing sector from 2021 to 2030. These initiatives focus on leveraging cereals for feed production, advancing corn and soybean seed development, expanding cultivation areas, and integrating cutting-edge production technologies.
Swine Leads as the Largest Growing Animal Type
Swine feed has emerged as the highest-consumed feed across the country due to growing consumer preferences for pork meat. Pork not only serves as a primary protein source for the Vietnamese but also as the main ingredient of many dishes in its gastronomy. The Vietnamese people with 98% of households use pork daily, accounting for more than 70% of the total meat consumption in 2021. According to the General Statistics Office (GSO), the total swine population in Vietnam witnessed a 2.5% increase, reaching 24.7 million heads in 2022, while live-weight production rose by 6.5%, reaching 26.3 million heads by the end of June 2023. According to the Department of Livestock, Vietnam, the total pork production in Vietnam in 2023 was 4.9 million metric tons, an increase of 4% compared to 2022. This factor cause a surge in the demand for different feed ingredients in the country in the coming years.
In Vietnam, numerous small and medium-sized farmers actively engage in swine production. This sector is vital, serving as a primary income source for many rural households and supplying manure for rice and vegetable crops. Consequently, to ensure economic stability, Vietnamese farmers are raising swine, driving up domestic demand. As a result, swine feed has emerged as the dominant segment in the market.
Vietnam has turned to imports of corn as a feed ingredient to support the level of meat production, which increased by nearly 30% in 2021 from the previous year. Small farmers in the country use fresh sweet potato roots and vines, dry cassava chips, rice, rice bran, maize, and various forms of vegetables/grasses as the main sources of pig feed. Such feeds are not commonly used in southern Vietnam. There, pigs are mainly produced on a large scale and fed on commercial feed.
In response to the surging demand for swine feed in the country, companies are ramping up their production capacities and business operations. For instance, in March 2022, Japfa Comfeed Vietnam Co., Ltd inaugurated a 48,000-head fattening swine farm in the Phu Rieng district of Binh Phuoc province. Additionally, the company has expanded six feed production factories, over 1,000 poultry and swine farms, and established a network of more than 40 stores dedicated to selling meat and processed foods across Vietnam. Thus, the escalating demand for pork in the country, the appetite for compound feed from the swine segment is projected to rise during the forecast period.
Vietnam Compound Feed Industry Overview
The Vietnamese compound feed market is highly fragmented, with several international and domestic players accounting for most of the market share. ADM Vietnam Co. Ltd, Cargill Incorporated, Alltech, Charoen Pokphand (CP) Vietnam, and De Heus Company Ltd are some of the major players in the country. New product launches, mergers and acquisitions, and partnerships are the major strategies adopted by these leading companies in the market. Market players are focusing on making investments in innovation, collaborations, and expansions to increase their market share.
Vietnam Compound Feed Market Leaders
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Charoen Pokphand (CP) Vietnam
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Cargill, Incorporated
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DE HEUS COMPANY LIMITED
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Alltech Inc.
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ADM VIETNAM CO., LTD.
*Disclaimer: Major Players sorted in no particular order
Vietnam Compound Feed Market News
- June 2024: Japfa Comfeed Vietnam Limited has expanded a factory project in Huong Canh town, Binh Xuyen district, Vinh Phuc province with an investment of USD 16.6 million to elevate its livestock farming capabilities towards modern industrial standards.
- September 2023: De Heus Vietnam introduced a shrimp feed mill in Vinh Long province covering an area of 29,300 square meters. The facility has an annual production capacity of 50,000 metric tons and is equipped with five specialized production lines solely dedicated to the manufacturing of shrimp feed products.
Vietnam Compound Feed Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Meat and Seafood Consumption
4.2.2 Focus on Animal Health and Nutrition
4.2.3 Initiatives by the Major Players
4.3 Market Restraints
4.3.1 Changing Raw Material Prices
4.3.2 Strict Government Regulations
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Ingredient Type
5.1.1 Grains and Cereals
5.1.2 Oilseeds and Derivatives
5.1.3 Fish Meal and Fish Oil
5.1.4 Supplements
5.1.5 Other Ingredient Types
5.2 Animal Type
5.2.1 Ruminants
5.2.2 Swine
5.2.3 Poultry
5.2.4 Aquaculture
5.2.5 Other Animal Types
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Most Adopted Strategies
6.3 Company Profiles
6.3.1 Charoen Pokphand (CP) Vietnam
6.3.2 Cargill Incorporated
6.3.3 ADM Vietnam Co. Ltd
6.3.4 De Heus Company Limited
6.3.5 Alltech Vietnam
6.3.6 Land O'Lakes Purina
6.3.7 Archer Daniels Midland
6.3.8 GreenFeed (Vietnam) Co. Ltd
6.3.9 New Hope Group
6.3.10 DeKalb Feeds
6.3.11 Kent Feeds
6.3.12 Proconco
6.3.13 Lai Thieu Feed Mill Co. Ltd
6.3.14 Nutreco NV
6.3.15 Austfeed
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Compound Feed Industry Segmentation
Compound feed is a nutritionally adequate feed for animals other than humans made by a specific formula, compounded to be fed as the sole ration, and capable of maintaining life and promoting production without any additional substance being consumed except water. It is a combination of different concentrate feed ingredients in suitable proportions. The Vietnamese compound feed market is segmented by Ingredients (Cereals, Oilseeds, and Derivatives, Fish Meal and Fish Oil, Supplements, and Other Ingredients) and Animal types (Ruminants, Swine, Poultry, Aquaculture, and Other Animal Types). The report offers market size and forecast in terms of value (USD) for all the above segments.
| Ingredient Type | |
| Grains and Cereals | |
| Oilseeds and Derivatives | |
| Fish Meal and Fish Oil | |
| Supplements | |
| Other Ingredient Types |
| Animal Type | |
| Ruminants | |
| Swine | |
| Poultry | |
| Aquaculture | |
| Other Animal Types |
Vietnam Compound Feed Market Research Faqs
How big is the Vietnam Compound Feed Market?
The Vietnam Compound Feed Market size is expected to reach USD 12.21 billion in 2024 and grow at a CAGR of 5.80% to reach USD 16.19 billion by 2029.
What is the current Vietnam Compound Feed Market size?
In 2024, the Vietnam Compound Feed Market size is expected to reach USD 12.21 billion.
Who are the key players in Vietnam Compound Feed Market?
Charoen Pokphand (CP) Vietnam, Cargill, Incorporated, DE HEUS COMPANY LIMITED, Alltech Inc. and ADM VIETNAM CO., LTD. are the major companies operating in the Vietnam Compound Feed Market.
What years does this Vietnam Compound Feed Market cover, and what was the market size in 2023?
In 2023, the Vietnam Compound Feed Market size was estimated at USD 11.50 billion. The report covers the Vietnam Compound Feed Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Compound Feed Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Compound Feed Industry Report
Statistics for the 2024 Compound Feed in Vietnam market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Compound Feed in Vietnam analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Vietnam Compound Feed Market Report Snapshots
