Vietnam’s aqua feed market is anticipated to grow at a compound annual growth rate (CAGR) of 4.90% between 2024 and 2031, increasing from USD 2.05 billion in 2023 to USD 3.01 billion by 2031. The country’s aquaculture sector has seen rapid expansion, playing a crucial role in its economy and significantly contributing to the global seafood supply. This growth is driving higher demand for aquafeed, which is essential for sustaining aquatic farming productivity and ensuring the health of farmed species.
In August 2024, De Heus Voeders B.V., a key industry player, inaugurated a new marine research and development (R&D) facility at the Vinh Long Aqua Research and Development Center. This facility is designed to enhance the company’s expertise in aquaculture, benefiting shrimp and marine fish farmers.
Vietnam’s common aquafeed formulations include a mix of fishmeal, soybean meal, corn, and other ingredients. There is growing interest in incorporating alternative protein sources to improve feed efficiency while lowering costs.
With increasing emphasis on quality and production efficiency, Vietnam’s aquafeed industry is adopting new technologies, including advancements in feed formulation, processing techniques, and enhanced quality control measures.
The Vietnamese government has implemented regulations to ensure aquafeed quality and safety, essential for maintaining the competitiveness of the country’s aquaculture exports. Collaborations between industry players and international regulatory bodies are further accelerating market growth. For example, in June 2023, the Asian Development Bank (ADB) and Australis Holdings, Inc. signed a USD 15 million agreement to promote climate-resilient barramundi and seaweed aquaculture in Vietnam.
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Key Market Growth Drivers
1. Rising Demand for Fish Feed Driving Market Expansion
Vietnam’s demand for fish feed surpasses that for shrimp and other aquatic species, reflecting the dominance of fish farming in its aquaculture sector. Key species like tilapia and pangasius account for a significant share of production due to high domestic consumption and export volumes. Fish farming generally requires larger feed quantities and intensive production systems compared to shrimp farming, increasing overall feed demand.
In November 2022, Skretting, a Nutreco N.V. brand, opened a fish feed facility in Vietnam. This modern plant has an annual production capacity of 100,000 tons and features ultra-fine grinding systems that enhance nutritional uniformity in feed pellets, improving nutrient absorption and fish growth.
2. Expanding Production Capacity to Meet Growing Demand
Enhancing aquafeed production capacity is crucial to ensuring sufficient supply and a broader range of feed options for Vietnam’s growing aquaculture industry. Increased production allows for the development of specialized feeds, improving growth rates and feed efficiency. Higher production capacity can also lead to economies of scale, lowering feed costs and further driving market demand.
In March 2024, De Heus Voeders B.V. established a shrimp feed mill in Vietnam with an annual capacity of 50,000 metric tons. The facility features five dedicated production lines exclusively for shrimp feed products.
3. Innovations Shaping the Future of Vietnam’s Aqua Feed Industry
Technological advancements are driving the future of aquafeed in Vietnam, emphasizing sustainability and efficiency. Innovations include alternative protein sources such as insect meal and single-cell proteins, reducing reliance on fishmeal and minimizing environmental impact.
Research is also focusing on feeds enriched with functional additives like probiotics and prebiotics, enhancing health and growth. Advanced processing technologies, including extrusion and microencapsulation, improve digestibility and reduce feed waste. Additionally, digital tools and data analytics are being integrated to optimize feed management and efficiency.
In April 2023, Aqua Spark invested USD 12 million in a Finnish biotech startup that developed PEKILO, a fungal-based mycoprotein powder derived from agricultural by-products. This innovative protein source can be used in aquafeed, promoting sustainability in Vietnam’s shrimp industry.
Future Market Trends (2024-2031)
Vietnam’s aquafeed market is expected to expand further with the growing use of insect protein as a sustainable alternative to fishmeal. Species such as black soldier flies (Hermetia illucens) and mealworms (Tenebrio molitor) are gaining attention for their high nutritional value and lower environmental impact.
In February 2024, Entobel signed an agreement with Vinh Hoan for the supply of sustainable aqua feed. Under this partnership, Feed One, a subsidiary of Vinh Hoan, will purchase significant volumes of insect protein from Entobel’s Vung Tau factory. This initiative aligns with Vinh Hoan’s goal of adopting more sustainable aquaculture feed ingredients.
Report Scope
The “Vietnam Aqua Feed Market Assessment, Opportunities, and Forecast (2017-2031F)” by Markets and Data provides an in-depth analysis of Vietnam’s aquafeed industry. The report covers market size, segmental trends, growth drivers, challenges, and forecasts from 2024 to 2031. Additionally, it profiles leading industry players, highlighting their market strategies and competitive positioning.
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