Market Trends of vietnam feed additives Industry
Poultry birds were 92.5% of country's animal population and has been increasing due to high demand for consumption and investment by companies to expand their farms
- Vietnam's poultry industry has grown in recent years, with poultry birds accounting for 92.5% of the total animal headcount in 2022. This trend can be attributed to the country's increasing demand for meat and eggs. Between 2017 and 2022, poultry production saw an impressive 67.5% growth due to the rising meat consumption and demand for animal protein.
- The spread of African swine fever in 2019 significantly impacted Vietnam's poultry industry. With consumers switching from pork to other meats such as chicken, poultry production increased by 26% from 2018, reaching 496 million heads in 2020.
- However, smallholder poultry production during the COVID-19 outbreak was negatively affected due to a shortage of feed caused by the closure of feed mills, leading to a 30% increase in feed prices. Nevertheless, poultry production bounced back in 2022, with a 1.9% increase from the previous year following the ease of COVID-19 restrictions and the reopening of restaurants, leading to a rise in poultry demand.
- Most of the poultry production in the country is attributed to smallholder farms, with flock sizes averaging 2,000-5,000 birds. However, major farms are investing in expanding their farms with a keeping size of 8,000-15,000 birds due to the increased profit margins and the growing demand for poultry meat and eggs. For instance, CP Vietnam invested USD 250 million in a poultry project to produce high-quality chicken products for local consumption and export to Japan, Europe, and the Middle East. Given the rising investments and consumer demand, Vietnam's poultry farming industry is expected to continue thriving during the forecast period.
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Increasing awareness of nutritionally balanced feed and Vietnamese government plans for developing fishers industry is increasing the demand for aqua feed production
- In 2022, aquaculture compound feed production accounted for 28.5% of the total compound feed production in the country. The growing demand for aquaculture feed is being driven by the increasing awareness of nutritionally balanced feed to enhance the productivity and performance of aquaculture animals. This trend significantly increased aquaculture feed production by 55.2% in 2022 compared to 2017.
- The Vietnamese government is committed to developing the fisheries industry and meeting the growing consumer demand. The Ministry of Agriculture and Rural Development launched a national action plan in 2017 to develop Vietnam's shrimp industry until 2025 and expand the brackish water shrimp industry until 2030, leading to an increase in the production of compound feed for shrimp by 106.6% from 2017 to 365.4 thousand metric tons in 2022.
- The use of acidifiers is projected to increase in compound feed due to their ability to improve feed conversion, reduce pathogen pressure, and preserve feed. They are also considered a promising alternative to in-feed antibiotics in aquaculture. Therefore, the acidifiers segment of the feed additives market is projected to record a CAGR of 5.8% during the forecast period.
- Therefore, the growing awareness of the benefits of compound feed and the rising demand for aquaculture products are expected to boost the market's growth during the forecast period. The government initiatives to develop the fisheries industry and meet consumer demand may also drive the demand for compound feed, providing significant opportunities for businesses operating in this market.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- High number of dairy farms with high profit margins and increasing demand for milk production has been increasing the ruminants production in the country
- Increase in the egg production and higher investments in broiler farming is encouraging the feed producing companies to increase the feed production for poultry
- High demand for swine feed is in Vietnam's northern and southern regions but there is an increase in the demand for healthy pig which is expected to increase the demand for swine feed in the future
- Government initiatives such as paying compensation for culling pigs and piglets is leading to increasing swine production
- Dairy cattle feed is increasing in the country as there is increasing trend of organic milk which is leading to increase in the investments in the dairy sector
