Vietnam Compound Feed Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam Compound Feed Market Trends and Insights

Rising Meat and Seafood Consumption

Vietnam per capita meat consumption reached 58.4 kg in 2024, representing a 12% increase from pre-African Swine Fever (ASF) levels in 2020. The seafood consumption remained stable at 32.1 kg per capita annually. Feed conversion ratios indicate that one kilogram of pork requires 3.2 kg of feed, and one kilogram of farmed fish needs 1.8 kg of aquafeed, creating a multiplier effect on compound feed consumption. Urban households in Ho Chi Minh City and Hanoi consume 15-20% more animal protein than rural households, which concentrates premium feed demand near logistics hubs. The introduction of antibiotic-free meat products by retailers has encouraged farmers to implement certified nutrition programs, driving the adoption of value-added feed formulations and increasing production volumes for specialty feed mills in the Vietnam compound feed market.

Emphasis on Animal Health and Functional Nutrition

After the African Swine Fever (ASF) recovery, Vietnamese farmers changed their approach to animal nutrition, with functional feed additives increasing to 8.2% of total feed costs in 2024 from 4.1% in 2019 ^{[2]Source: Vietnam Livestock Association, “Animal Health and Nutrition Survey 2024,” VLA.org.vn} . Farmers nowadays regularly include probiotics, prebiotics, and immune-boosting compounds in feed formulations, recognizing that preventing diseases is more cost-effective than treating them. The Ministry of Health's 2024 regulations on stricter antibiotic limits prompted large farms to adopt functional feed blends for regulatory compliance ^{[3]Source: Ministry of Health, “Antimicrobial Resistance Action Plan 2024-2030,” MOH.gov.vn} . Feed manufacturers nowadays provide on-farm advisory services alongside their products, which increases customer retention. These developments strengthen the revenue stability of major players in the Vietnam compound feed market.

Expansion of Integrated Mega-Farms and Contract Farming Models

Recently, farms exceeding 1,000 swine supply 42% of national pork output compared with 28% in 2020. Contract farming covers 65% of commercial poultry and aquaculture output, shifting procurement from open-market dealers to direct mill-to-farm linkages. Large integrators demand tailor-made formulas that optimize cost per kilogram of live weight, creating tight supplier partnerships. Although mega-farms offer volume stability, they negotiate aggressively on price, squeezing commodity-oriented mills. Consequently, firms that master formulation agility and technical service gain structural advantages in the Vietnam compound feed market.

Growth of Vietnam Aquaculture Export Corridor

Vietnam seafood exports reached USD 9.2 billion in 2024, with aquaculture products accounting for 78% of total exports, establishing the country as a major aquaculture producer. The Mekong Delta's pangasius farming and coastal provinces' shrimp cultivation create concentrated demand for high-performance aquafeeds that meet international food safety standards. In the Mekong Delta, shrimp and pangasius farms pay 20-30% higher prices for feeds that reduce feed conversion ratios and comply with GlobalGAP standards required by buyers in the United States, European Union, and Japan. Feed manufacturers work with international research partners to optimize nutrient density for tropical species, enabling premium pricing above standard aquafeed ranges. The export market requirements drive growth in the specialty segment of Vietnam compound feed market.

Price Volatility of Corn, Soybean, and Fishmeal

Vietnam imports 80% of its corn and soybean meal requirements, so world-price swings significantly impact cost structures ^{[4]Source: Vietnam Livestock Association, “Animal Health and Nutrition Survey 2024,” VLA.org.vn} . Corn prices fluctuated between USD 180 and USD 240 per metric ton in 2024, forcing four mid-size mills to suspend production for two months due to negative margins. Fishmeal traded as high as USD 1,800 per metric ton, eroding profitability in shrimp feed lines. Larger mills hedge through futures and diversified supply, but smaller operators lack capital access, amplifying consolidation pressures in the Vietnam compound feed market.

Tighter Limits on Antimicrobial Growth Promoters

National regulations cap antibiotic inclusion in complete feeds at 80 mg per kilogram starting July 2025, with a full ban on colistin in effect since January 2024 ^{[5]Source: Ministry of Health, “Antimicrobial Resistance Action Plan 2024-2030,” MOH.gov.vn} . Reformulation costs run USD 2-5 million per producer, covering laboratory trials and farmer education. Mills that cannot recover these costs through price premiums, risk margin compression or exit. Customers also face short-term performance dips when shifting to non-medicated recipes, tempering near-term volume growth in the Vietnam compound feed market.

Segment Analysis

By Ingredient Type: Grains Drive Volume While Supplements Accelerate Growth

Grains and cereals maintained 46% of the Vietnam compound feed market share in 2024, reflecting Vietnam's traditional reliance on corn and rice-based feed formulations, while the segment maintains steady growth aligned with overall market expansion. The ingredient landscape reveals Vietnam's strategic vulnerability and emerging opportunities simultaneously. Domestic grain production covers only 20% of feed industry requirements, creating import dependency that exposes manufacturers to global price volatility and supply chain disruptions. This challenge drives innovation in alternative ingredients, with black soldier fly larvae production facilities expanding rapidly and algae-based proteins gaining traction in aquaculture applications. 

The Supplements segment demonstrates the highest growth trajectory at 9.4% CAGR through 2030, reflecting the industry's shift toward functional nutrition and health-focused formulations. The regulatory environment increasingly favors sustainable and traceable ingredients, positioning domestic alternative protein producers for accelerated market penetration as environmental compliance requirements tighten across the value chain.

Note: Segment shares of all individual segments available upon report purchase

By Animal Type: Poultry Dominates While Aquaculture Emerges as Growth Engine

Poultry feeds led the Vietnam compound feed market size in 2024 at 34.2% share, upported by Vietnam's position as Southeast Asia's second-largest poultry producer and consistent domestic consumption growth. Technical innovation in aquafeed formulations, particularly for shrimp and pangasius, creates opportunities for premium pricing and margin expansion as farmers prioritize feed conversion efficiency and disease resistance over cost minimization.

Aquaculture feeds are projected to grow at an 8.7% CAGR through 2030, the fastest among all animal types, on the back of export-linked shrimp and pangasius farms. The segment's growth trajectory reflects Vietnam's competitive advantages in tropical aquaculture, including favorable climate conditions, extensive water resources, and established export infrastructure. ISO 22000 and GlobalGAP certifications increasingly influence purchasing decisions, favoring feed manufacturers with robust quality management systems and traceability capabilities. 

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Mekong Delta generated about 45% of feed demand in 2024, driven by intensive aquaculture clusters and pig megafarms that benefit from abundant grain logistics via inland waterways. Manufacturers in Can Tho, Long An, and Vinh Long gain freight advantages due to bulk grain terminals that cut inbound costs by 6% relative to northern mills. Environmental regulations increasingly influence regional market dynamics, with stricter wastewater treatment requirements in the Mekong Delta creating compliance costs that favor larger feed manufacturers over smaller local producers. 

The Red River Delta contributed 28% of national volume, leveraging proximity to Hanoi’s consumption hubs and a modern poultry supply chain. Upgrades to National Highway 1 reduce inter-provincial transit times, enabling just-in-time deliveries for temperature-controlled additives. Central Coast provinces delivered 18% of the Vietnam compound feed market in 2024, anchored by Van Phong Bay shrimp expansion and pork herd growth in Nghe An and Quang Binh. Environmental compliance in this region is pivotal because coastal ecosystems face eutrophication risk, mills with advanced effluent treatment secure easier permitting. 

Northern Mountain and Central Highland areas, which formed the remaining 9% of demand, represent a strategic frontier for ruminant feed due to dairy herd migration toward cooler uplands. Infrastructure gaps and limited cold-chain coverage constrain rapid growth. Digital sales portals that aggregate smallholder orders and route them through micro-hubs could unlock latent potential, enhancing geographic balance in the Vietnam compound feed market.