Vietnam Aquafeed Market to Reach USD 3.51 Billion by 2030, Driven by Growing Export Demand and Shrimp Farming

 The Vietnam aquafeed market is projected to reach USD 3.51 billion by 2030, growing at a CAGR of 4.3% during the forecast period. This growth is primarily driven by the surge in demand for high-quality aquafeed due to the increasing production of shrimp and other aquaculture products. The market’s expansion is further bolstered by the rise in export demand, advancements in feed manufacturing technology, and the shift toward more sustainable and efficient feeding practices.

The Vietnamese aquafeed industry is an integral part of the nation’s thriving aquaculture sector. The country has become one of the largest global producers of seafood, ranking fourth in aquaculture production after China, Indonesia, and India. This growth has led to a steady increase in the demand for high-quality aquafeed, which is essential for the healthy growth of aquatic species. Vietnam’s aquafeed market is primarily driven by the need to support intensive aquaculture practices, especially in shrimp farming, which is the country's most valuable export product.

Aquafeed is predominantly made from key ingredients like soybean meal, fish meal, fish oil, and carp. It is commonly available in pellet form, which can be customized in size and nutrient composition to cater to different species, making it a versatile and essential product in the aquaculture industry. With Vietnam's rising export demand and technological advancements in feed production, the market for aquafeed is poised for steady growth through 2030.

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Key Trends Shaping the Vietnam Aquafeed Market

Several factors are influencing the direction of the Vietnam aquafeed market, with key trends emerging as the industry adapts to new challenges and opportunities:

• Increasing Export Demand for Aquaculture Products: The growing global appetite for seafood, especially in markets like the United States, China, and the European Union, is driving demand for Vietnamese aquaculture products. The country’s involvement in various bilateral and free trade agreements, including the EU-Vietnam Free Trade Agreement signed in 2020, has allowed more Vietnamese seafood products, particularly shrimp, to reach international markets. This, in turn, is increasing the demand for aquafeed as aquaculture farms seek to produce higher yields to meet export requirements.
• Shift to White Leg Shrimp Farming: Vietnamese farmers are increasingly shifting from black tiger shrimp to the more cost-effective white leg shrimp (Litopenaeus vannamei). White leg shrimp is less expensive to farm and grows faster, making it a more profitable option, especially amid global economic uncertainty. This shift is driving the demand for high-quality, specialized aquafeed tailored for white leg shrimp, which is expected to significantly contribute to the market's growth.
• Government Initiatives and Sustainability Focus: The Vietnamese government is taking proactive steps to promote sustainable aquaculture practices, including initiatives to increase the production of certified sustainable seafood. By 2025, Vietnam's shrimp export revenue is expected to reach USD 10 billion, a target set by the government to boost the industry’s sustainability and competitiveness. This has led to greater adoption of advanced feed technologies and better-quality aquafeed to ensure higher productivity and sustainability.
• Technological Advancements in Feed Manufacturing: With the rising demand for aquaculture products, advancements in feed manufacturing technologies have become a critical factor in the market’s growth. The development of new feed formulations that improve feed conversion ratios, optimize nutrient utilization, and increase the efficiency of aquaculture production is driving the market forward. Manufacturers are focusing on producing nutritionally balanced feeds to enhance fish health and growth, thereby increasing overall production efficiency.

Vietnam Aquafeed Market Segmentation

The Vietnam aquafeed market is segmented into several categories based on species, ingredients, and distribution channels. Each segment is witnessing distinct trends, shaping the broader market dynamics:

• By Species:

  • Shrimp: The shrimp segment is the largest contributor to the market, with white leg shrimp accounting for a significant share. This species' rapid growth rate and higher profitability have made it the focus of many farmers, driving the demand for specialized shrimp feed.

  • Fish: Fish species, including pangasius and marine fish, also form a key part of the market. While shrimp dominates, fish farming is also experiencing growth, particularly in regions that are not as focused on shrimp farming.

  • Other Aquatic Species: Smaller segments such as crabs, mollusks, and other aquatic species are also contributing to the market, albeit at a slower pace compared to shrimp and fish.

• By Feed Type:

  • Pellets: The most common form of aquafeed, pellets are used extensively across all aquaculture species. They can be customized in size, floating or sinking properties, and nutrient composition, making them suitable for various aquatic species.

  • Crumble and Powder: These forms of feed are used primarily in the early stages of fish and shrimp farming, providing smaller particles that are easier for young aquatic species to consume.

• By Distribution Channel:

  • Commercial Feed: A significant portion of the market is dominated by commercially manufactured feed, which is widely used in intensive aquaculture settings.

  • Farm-made Feed: While most large-scale farms rely on commercially produced aquafeed, smaller inland farms still produce their own feed, often using local ingredients like trash fish.

Key Players in the Vietnam Aquafeed Market

The Vietnam aquafeed market is highly competitive, with several leading players shaping the landscape. These companies focus on product quality, technological advancements, and strategic expansions to gain a larger market share:

• Nutreco NV: A leading global player in the aquafeed industry, Nutreco is known for its focus on sustainable feed solutions and innovations aimed at improving aquaculture productivity.
• Charoen Pokphand Group: This Thai multinational conglomerate is a significant player in the Vietnamese market, producing high-quality aquafeed for various species, including shrimp and fish.
• Archer Daniels Midland Co.: A key player in the global agribusiness sector, ADM offers a wide range of aquafeed products tailored to meet the nutritional needs of different aquatic species.
• De Heus Vietnam: A leading Vietnamese manufacturer of animal feed, De Heus specializes in aquafeed, particularly for shrimp farming, and is focused on improving feed quality and sustainability.
• Cargill: A global leader in the agribusiness sector, Cargill is also a prominent supplier of aquafeed in Vietnam, offering a range of feeds designed to support the growth of various aquatic species.

These companies are investing in research and development to enhance feed formulations and drive sustainability in aquaculture.

Conclusion

The Vietnam aquafeed market is poised for steady growth, driven by the increasing demand for high-quality aquafeed due to the country’s expanding aquaculture sector, particularly shrimp farming. Technological advancements in feed production, government support for sustainable aquaculture, and the shift toward white leg shrimp farming are key factors that will continue to drive market expansion. As Vietnam strengthens its position as a leading seafood exporter, the demand for aquafeed will likely continue to grow, providing opportunities for both established and new players in the market. The country's commitment to sustainable practices and technological innovation will shape the future of the aquafeed industry in the coming years.