Vietnam Compound Feed Market Size (2024 - 2029)

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 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.