The Vietnamese aquaculture feed market was valued at USD 2.61 billion in 2019 and is projected to reach USD 3.67 billion, with a CAGR of 5.9% during the forecast period (2020-2025). The drivers identified in the market are an increase in export demand for aquaculture products, steady change in diet preferences, and increasing fish consumption. The restraints identified in the market are environmental concerns on water quality and lack of cost-effective feeds and feeding strategies.
Key Market Trends
Increase in Export Demand
The growing demand for aquaculture products has a direct implication on the production of high yield aqua feed. Intensive aquaculture depends on commercially manufactured aqua feed, though most of the inland farmers in the country rely on farm-made feed. As a member of ASEAN, Vietnam involved in several bilateral and free trade agreements, which created a huge demand for Vietnamese aqua feed in major economies, such as the United States, North America, China, and India. Usually, all the good quality feed is exported to major markets and crop residues, such as leaves, grasses, corn, cassava, fish trash are used as their internal feed ingredients, which in turn affect the pond ecosystem. To reduce the environmental impact, the government focused on introducing a nutritious system feeding concept, which not only feeds the farm creatures but also improves the overall ecosystem of it.
Fish Feed is the Largest Segment by Type
The aquafeed market has seen a hike in its growth rate over the last two decades. The aquafeed industry in Vietnam, particularly fish feed is growing, majorly because of the increasing consumer inclination toward seafood throughout Vietnam, and also the increasing aquaculture activities. The demand for freshwater aquaculture and fisheries products is on the rise in Vietnam. More than 35 percent of consumers reported an increase in their consumption of freshwater products between 2014 and 2016, while only 13 percent consumed less freshwater fish in 2001 than in the previous year.
The fish farming industry is shifting gradually from extensive farming to the feed-dependent intensive or semi-intensive farming system. Aquaculture depends on farm-made feed or costly commercial aquafeed. However, one of the main restraints for this market is the increasing cost of feed ingredients and raw materials.
In the Vietnamese aquaculture feed market, companies are not only competing based on product quality and promotion but are also focused on strategic moves, to hold larger market share. The market is consolidated in nature, with the major players holding more than 60% share of the aquaculture feed market.
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