Vietnam's aquatic feed market is on a strong growth trajectory, predicted to reach 2.38 billion USD by 2023 and continue to increase to 3.94 billion USD by 2028, with a CAGR of 4% during the forecast period. (Mordor Intelligence).
Analyze the situation of the aquatic food market in Vietnam
The aquatic feed market in Vietnam has been estimated to reach USD 2.38 billion by 2023 and is expected to reach USD 2.94 billion by 2028, growing at a CAGR of 4.30% during the period. forecast period (2023-2028). The main factors driving the market are large aquaculture output, changing consumption habits, increased domestic seafood consumption, increased income, and increased seafood exports.
The most common ingredients include soybean meal, fish meal, fish oil, and carp. Feed is provided in pellet form with different sizes depending on the species being raised. Food properties can be adjusted to float or sink in water. Different nutritional content meets the specific nutritional needs of each species.
Shrimp feed demand is expected to increase as the government focuses on improving black tiger shrimp production. Demand for pangasius feed is also increasing due to the higher price of pangasius compared to other types of fish. Government initiatives to promote certified sustainable seafood production will boost demand for aquafeed. Besides, domestic aqua feed manufacturers are expanding production capacity and new companies are entering the market.
The market has high growth potential as aquaculture production is expected to continue to increase in the coming years. Demand for high-quality and sustainable aquafeeds is increasing. Companies can take advantage of the opportunity by developing new feed products, expanding into new markets, and investing in advanced manufacturing technology.
Aquatic food market trends in Vietnam
Growth of exported aquatic products
The increase in demand for aquaculture products is directly driving high-yield aquafeed production in Vietnam. Intensive aquaculture relies heavily on commercially produced aquafeeds, although many inland farmers still use homemade feeds.
As a member of ASEAN, Vietnam benefits from bilateral and free trade agreements, facilitating the export of aquaculture products to major markets such as the United States, North America, China and India.
In 2020, the Free Trade Agreement between Vietnam and the European Union (EU) was signed, opening up opportunities for many Vietnamese seafood products to enter the EU market. According to VASEP, tuna exports to the EU continued to grow impressively in September 2022, reaching nearly 31 million USD, up 33% over the same period in 2021.
Currently, more than 50 Vietnamese enterprises are participating in exporting tuna to the EU. Bidifisco, Tuna Vietnam and FoodTech are the three largest tuna exporters to this market, accounting for about 45% of Vietnam's total tuna export turnover to the EU.
The export-oriented aquaculture trend is opening up great potential for expanding the domestic aquatic feed market. Increased investment in animal feed production will contribute to improving feed quality, thereby boosting domestic aquatic feed demand during the forecast period.
Whiteleg shrimp exports occupy a key position
According to the Ministry of Agriculture and Rural Development, Vietnamese farmers are strongly converting from farming black tiger shrimp ( Penaeus monodon ) to farming whiteleg shrimp ( Litopenaeus vannamei ), also known as Pacific white shrimp. The main reason for this change is that white shrimp are less expensive to raise and grow faster, helping to bring higher profits in a difficult economic context.
The high profit potential from whiteleg shrimp has motivated farmers to switch to this species from the Central region of Vietnam to informal farming areas such as the Mekong Delta.
Vietnamese farmers mainly use mixed feed for white-legged shrimp and do not use supplementary feed such as trash fish and small shrimp. Due to the higher feed conversion ratio (FCR) in white shrimp, farmers invest more in feed and stock shrimp at higher densities.
Domestic shrimp production increased from 2019 to 2020, with whiteleg shrimp ( Litopenaeus vannamei ) production increasing 10% to 632,000 tons, according to the Vietnam Department of Fisheries (DoF). This shrimp species plays an important role in Vietnam's seafood consumption and export activities, with the Mekong Delta being the main production area.
The shift to white shrimp farming is expanding the feed market for this species, which is expected to boost domestic shrimp feed demand in the coming years.
Some key factors driving Vietnam's aquatic feed market
Global demand for seafood is expected to continue to grow in the coming years due to population growth, per capita income and awareness of the health benefits of seafood consumption.
Aquaculture plays an increasingly important role in meeting global seafood consumption needs. Demand for high-quality aquafeeds to support sustainable aquaculture practices will also increase.
The Vietnamese government is implementing many policies to support the development of the aquaculture industry, including investing in infrastructure, research and development, and encouraging the use of high-quality aquatic feed.
With these favorable factors, Vietnam's aquatic feed market is predicted to witness strong growth in the coming years.
Vietnam's aquatic feed market has high growth potential in the coming years, driven by increasing demand for animal protein consumption, the growing aquaculture industry and the trend of using functional feeds. and sustainable food. However, businesses also need to face a number of challenges such as fluctuating raw material prices, fierce competition and epidemics. Businesses need to have appropriate development strategies to take advantage of opportunities and overcome challenges in this market.
(Tepbac)