Vietnam Aqua Feed Market ,Opportunities and Forecast, 2017-2031F

Vietnam aqua feed market is projected to witness a CAGR of 4.90% during the forecast period 2024-2031, growing from USD 2.05 billion in 2023 to USD 3.01 billion in 2031. Vietnam aquaculture sector has experienced rapid growth, establishing itself as a cornerstone of the country’s economy and a significant contributor to global seafood supply. This expansion is closely linked to a rising demand for aquafeed, which is critical for sustaining production levels and ensuring the health and growth of farmed aquatic species. In August 2024, the key player, De Heus Voeders B.V. inaugurated a new marine R&D facility at Vinh Long Aqua Research and Development Center in Vietnam. The latest facility is aimed to enhance the company’s global expertise in aqua farming which would benefit their shrimp and marine fish customers.

The most common aquafeed used in Vietnam contains a mixture of fishmeal, soybean meal, corn, and other ingredients. There is an interest in the incorporation of alternative protein sources in feed formulation and strategies leading to an enhancement in feed efficiency while reducing feed costs.

The manufacturers aim to increase quality and production efficiency, with the aquafeed industry in Vietnam, adopting new technologies. The innovations include new developments in feed formulation, processing technologies, and putting in place good quality control measures.

The Vietnamese government has been implementing measures to ensure quality and safety of aquafeed as a precondition for maintaining the competitive advantage of Vietnamese aquaculture products in the international markets. Moreover, the partnership of various players in the market with the international regulatory bodies is further boosting the market growth in the country. For instance, in June 2023, The Asian Development Bank (ADB) and Australis Holdings, Inc. signed a USD 15 million agreement to promote climate-resilient, ocean-based barramundi and seaweed aquaculture in Vietnam.

Fish Feed to Support Market Growth

Vietnam’s higher demand for fish feed compared to shrimp feed and feeds for other aquatic animals is driven by the scale and economic significance of its fish farming sector. Fish, including species such as tilapia and pangasius, constitute a major portion of Vietnam’s aquaculture production, reflecting high domestic consumption and export volumes. Additionally, fish farming generally involves larger volumes and more intensive production systems than shrimp farming, leading to greater feed requirements. The established infrastructure and market focus on fish farming further amplify the demand for fish feed, overshadowing the demand for shrimp and other aquatic animal feeds.

In November 2022, Skretting, a brand of Nutreco N.V., commenced a new fish feed facility in Vietnam. The factory has a modern production line with the production capacity of 100,000 tons per year. The ultra fine grinding systems installed in the factory increases the nutritional uniformity in each pellet, which increases the absorption of the nutrients in fish, which allows the factory to produce special products with small sizes.

Expansion in Productive Capacity to Drive Market Growth

The expansion in the productive capacity of aquafeeds greatly stimulates demand for aquafeed by increasing its availability and diversifying feed options. Increased production capacity of aquafeed mills can better position them to serve the growing needs of the aquaculture industry, which involve greater volumes and a wider range of formulations. This would open up the possibility of developing specialized feeds for a variety of aquatic species and result in faster growth rates and better feed efficiency. Therefore, the adoption of such sophisticated feeds by aquaculture operations will rise, thereby driving the growth of the overall consumption of aquafeed. Moreover, an increase in capacity can result in economies of scale, which will reduce feed costs and boost demand.

In March 2024, De Heus Voeders B.V. established a shrimp feed mill in Vietnam. This production facility has an annual capacity of 50,000 metric tons, featuring five production lines which are exclusively dedicated to shrimp feed products.

Innovations to Foster the Aqua Feed Market Growth in Vietnam

Several innovations that affect the future of aquafeeds in Vietnam are directed by demands in aquaculture production for more sustainable and efficient practices, including alternative protein sources such as insect meal and single-cell proteins, which will alleviate the constraints of traditional fishmeal and reduce the impact on the marine environment. Other ongoing research involves feeds with better nutritional profiles, such as functional additives of probiotics and prebiotics that will enhance health and growth. Improvements in feed processing technology, including extrusion and microencapsulation, further make the feed more digestible, reducing wastage. Digital tools and data analytics integrate into providing a more accurate way of managing and optimizing feed. These will advance feed efficiency, sustainability, and economic viability, continuing to support the growth of Vietnam’s aquaculture industry in meeting the challenges of global food security.

In April 2023, Aqua Spark invested in Finnish biotech startup for USD 12 million which is a Vietnamese Shrimp technology platform. The company has developed PEKILO, mycoprotein powder, which is a fungal protein, produced from the by-products of food and agricultural processes and can be used in aquafeed.

Download Free Sample Report

Future Market Scenario (2024 – 2031F)

The aquafeed market in Vietnam is expected to witness expansion due to the rise in the usage of insect protein as a key ingredient for aqua feed. Insect protein, derived from species such as black soldier flies, known as Hermetia illucens and mealworms, known as Tenebrio molitor, offers a promising alternative to conventional fishmeal, which is often associated with overfishing and environmental degradation.

In February 2024, Entobel signed an agreement with Vinh Hoan for the supply of sustainable aqua feed. The partnership includes an offtake agreement by Feed One, a subsidiary of Vinh Hoan, to purchase a substantial volume of insect protein produced at Entobel’s Vung Tau factory in 2024. According to the CEO of Ving Hoan accelerating the adoption of Entobel’s insect protein in pangasius production will make it possible for Vinh Hoan to source aquaculture feed ingredients in a more sustainable way.

Report Scope

“Vietnam Aqua Feed Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Vietnam aqua feed market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Click Here:https://www.marketsandata.com/industry-reports/vietnam-aqua-feed-market

About Us:

Markets and Data provides a comprehensive/ panoramic understanding of markets at global, regional, and country levels. Examine changing consumer preferences, emerging challenges, underlying trends, and growth prospects to accelerate your business strategies.

Contact

Mr. Vivek Gupta

5741 Cleveland street,

Suite 120, VA beach, VA, USA 23462

Tel: +1 (757) 343-3258

Email[email protected]

Websitehttps://www.marketsandata.com

priya sharma
Author: priya sharma

Associate SEO at Market Xcel Pvt. Ltd.

priya sharma

Associate SEO at Market Xcel Pvt. Ltd.