Summary

The Vietnam aquaculture feed market is projected to witness a CAGR of 5.7% during the forecast period (2021-2026). Amid the COVID-19 pandemic, the Vietnamese government imposed various measures such as social distancing, mobility restrictions, and shutdown of non-essential service facilities to contain the outbreak. The major impact of the containment measures was seen on exports of fish and other seafood, which impacted the aquaculture feed demand in the country. However, due to the early measures taken by the government, overall, a moderate impact was observed on the aquaculture feed market in Vietnam.

Over the medium term, factors like an increase in export demand for aquaculture products, a steady change in diet preferences, increasing per capita spending, and rising sustainable shrimp farming are expected to drive the market growth. The growing demand for aquaculture products has a direct implication on the production of high-yield aquafeed. According to the Vietnam Association of Seafood Exporters and Producers, in the first 9 months of 2020, Vietnam exported seafood to 154 markets. The major markets, including Japan, the United States, China, the EU, South Korea, and the ASEAN region, accounted for nearly 80% of the export turnover. Hence, the aquafeed market is expected to grow significantly in the country, with the rising demand from the seafood industry for exports. Moreover, per capita spending on fish and seafood by Vietnamese consumers is predicted to reach USD 48.8 in 2024, from an estimated USD 33.4 in 2020. Hence, the rising consumer spending on seafood is expected to create an increase in demand for premium fish, which is likely to boost the feed market’s growth in the coming years. However, one of the main restraints for this market is the increasing cost of feed ingredients and raw materials.

Key Market Trends

Increase in Export Demand for Aquaculture Products

The growing demand for aquaculture products has a direct implication on the production of high-yield aquafeed. Intensive aquaculture depends on commercially manufactured aquafeed, though most of the inland farmers in the country rely on farm-made feed. As a member of ASEAN, Vietnam is involved in several bilateral and free trade agreements, which created a huge demand for Vietnamese aquaculture products in major economies, such as the United States, North America, China, and India. The European Union and Vietnam signed a trade agreement in June 2019. From January 1 to May 15, 2019, pangasius fish export value to the EU reached USD 105.2 million, up by 31.5% against the same period of 2018. The growth was largely attributed to four markets, namely the Netherlands, the United Kingdom, Germany, and Belgium. The demand for pangasius fish imports from Central and Eastern European countries is also increasing. A large proportion of pangasius fish imported by the Netherlands and Germany has been shipped to Central and Eastern European nations that do not have big import ports. With tax advantages from the EU-Vietnam Free Trade Agreement (EVFTA), exports of aquaculture products to the EU are expected to see positive growth in the near future. This is expected to boost the aquaculture feed demand considerably in the country during the forecast period.

Fish Feed is the Largest Segment by Type

Vietnam is among the leading countries in global aquaculture and is the world’s second-largest exporter of shrimp. The total shrimp production in Vietnam is estimated at 650,000 metric ton a year. About 95% of all Black Tiger shrimps (Monodon) produced in Vietnam are farmed in the Mekong Delta. Additionally, the Mekong Delta is also the farming hub for the Pacific White Shrimp, accounting for 75% of the total Vietnamese production. Shrimp farming has been rising in the country over the past few years, with the rising seafood demand globally. In 2017, Skretting Vietnam opened a new, dedicated aquaculture feed plant in the Mekong Delta to help the country's fast-growing shrimp farming sector. The new facility also houses a special system to produce Skretting’s unique functional health feed for shrimp, Lorica. Shrimp farming has been facing challenges because the environment is getting more polluted. In 2018, the Ministry of Agriculture and Rural Development approved a semi-intensive shrimp farming project for food safety assurance. In 2020, BioMar and Viet-UC, Vietnam’s leading shrimp hatchery, signed a Memorandum of Understanding (MOU) to jointly develop and produce aquafeed in Vietnam. Thus, with the rising investments and sustainable farming methods, shrimp farming is expected to grow at a phenomenal rate in the country, which is expected to boost the shrimp feed demand in the coming years.

Competitive Landscape

The Vietnam aquaculture feed market is consolidated in nature, with the major players holding more than 60% share of the aquaculture feed market. The key players are not only competing based on product quality and promotion but are also focused on strategic moves such as expansions to gain a larger market share.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

ページTOPに戻る

Table of Contents