Vietnam animal feed additives market worth $160.5M by 2022

Increasing per capita meat consumption is expected to be major factor driving Vietnam animal feed additives market over the next seven years. With increasing meat consumption, domestic market for animal feed has been experiencing significant growth since the last few years. Increasing requirements for high quality feed from animal farmers is expected to drive demand for feed additives such as feed enzymes, feed acidifiers, amino acids and antioxidants.
Antibiotics emerged as the leading product segment and accounted for over 36 percent of the total market revenue in 2014. Nascent domestic probiotics production coupled with animal farmer's inclination towards antibiotics as growth promoters has been instrumental in its growth. Increasing incidences of microbial diseases among farm animals is expected to drive antibiotics demand over the forecast period. Funding initiatives to develop probiotics domestically is expected to challenge antibiotics consumption since most animal farmers prefer the latter owing to their easy availability and cheaper costs compared to antibiotics.
Further key findings from the study suggest:

• Vietnam animal feed additives market was $112.4 million in 2014, and is expected to reach $160.5 million by 2022, growing at a CAGR of 4.7 percent from 2015 to 2022.
• Feed acidifiers are expected to be the fastest growing product segment over the next seven years on account of their increasing consumption in poultry feed. Shift in meat consumption from pork to poultry is expected to further drive poultry feed demand, thus further complementing feed acidifiers growth.
• Poultry was the largest application market and accounted for more than 38 percent of the total market revenue in 2014. Increasing per capita poultry consumption is expected to be a major factor driving its growth over the forecast period. Apart from being the largest application segment, poultry is also projected to be the fastest growing application segment in the nation.
• Vietnam animal feed additives market is highly dependent on imports. Animal feed additives imports accounted for more than 77 percent of the overall consumption in 2012. Antibiotics were the leading product imported followed by amino acids.
• Vietnam animal feed additive exports grew by 12 percent from 2012 to 2014, primarily driven by growing domestic production that can be attributable to government initiatives to promote investment in domestic animal feed and feed additives market.
• Vietnam animal feed additives market is largely dominated by overseas producers who account for more than 70 percent of the total market. Easing of FDI norms to promote foreign capital has been a major factor for increasing presence of multinational companies in the regional market.

Vietnam cracks down on banned substances in animal feed

Vietnam’s Animal Feed Division of the Animal Husbandry Department said it would crack down on animal feed production and trading establishments and pig farming and slaughterhouses in the south from November to February 2016.
Inspection teams will focus on small and medium-size production establishments and those without a clear place of origin. Inspections will follow up on legal regulations related to the use of banned substances, Clenbuterol, Salbutamol and Ractopamine, in pig and beef breeding and Vat Yellow in poultry breeding.
Tighter inspections aim to improve the quality and safety of feed.
In August, Vietnam’s Ministry of Agriculture and Rural Development (MARD) said prohibited substances had been found in animal feed and veterinary medicine sold in some of the country’s southern regions.
Beta-agonist, a class of non-hormonal compounds fed to cattle to make them gain lean weight, was found in samples taken at slaughterhouses in several districts of Ho Chi Minh City.
Pigs also tested positive for prohibited substances in several districts. Of 222 samples from pigs in eight slaughterhouses, 31 were positive for prohibited substances. Of those 31, 22 came from pigs in Dong Nai.
And, in April, MARD said it would crack down on pig and pig feed producers that use substances that are banned for use in feed.
Nguyen Xuan Duong, vice head of the ministry's Department for Animal Husbandry, during a press conference held April 6, said that businesses in violation of using banned substances in pig feed would be issued warnings for the first two offenses. If a third offense were to occur, the establishment in violation would be forced to close. The MARD official added that closed establishments would also have their names released to the media.

8 key findings about Vietnam animal feed market

Vietnam's animal feed market size is expected to reach US$10.55 billion by 2022, according to a new report by Grand View Research Inc.
A shift in trend towards consumption of poultry and cattle meat is expected to remain a key driving factor for the Vietnam animal feed market. Historically, domestic consumers depended largely on pork meat to meet nutritional requirements. The advent of increasing per capita disposable income level has transformed this shift in trend, which has propelled animal feed demand in the nation.
Increasing investments, particularly in research and development, are expected to drive production sustainability over the forecast period. Even though domestic production is expected to rise, the market faces challenges in the form of imports. Most of the animal feed consumed in Vietnam is sourced through imports from neighboring ASEAN nations.

Key findings from the report 

1. Vietnam’s animal feed market demand was 15,829.3 kilotons in 2014 and is expected to grow at a CAGR of 6.4 percent from 2015 to 2022.
2. Vietnam’s animal feed market is characterized by a high number of imports and numerous, often contradictory, regulations implemented by agencies such as Ministry of Agriculture and Rural Development (MARD).
3. Poultry feed accounted for highest share of 39.5 percent in 2014 and is expected to witness highest the growth of 6.6 percent CAGR over the forecast period. Pork feed followed the poultry feed segment in terms of market size and is projected to reach 8,605.7 kilotons by 2022 at 6.2 percent CAGR.
4. Commercial animal feed products include fodder and forage. Fodder was the largest product with global consumption estimated at 13,542.0 kilotons in 2014. Fodder is expected to grow at estimated CAGR of 6.6 percent over the forecast period.
5. Aquaculture feed is also rapidly gaining importance in Vietnam owing to innovative feeding systems developed to promote aquaculture nutrition and quality. The segment accounted for US$355.3 million in 2014, which is projected to rise to US$670.2 million by 2022.
6. The Vietnam animal feed market share is largely dominated by large multinational corporations with immense investments in the poultry, cattle and pork meat sectors. The industry is gradually moving toward consolidation with domestic manufacturers gaining strong foothold. Charoen Pokphand was the leading company with just below 20 percent of the market share in 2014.
7. Growing regulatory pressure on companies has led to the adoption of hygienic animal husbandry practices. Emerging technologies and demand for higher-quality meat products at lower prices has led to the development of efficient breeding processes utilizing statistical methods to determine genetic changes and characteristics.
8. Major international feed manufacturers are entering Vietnam by the means of mergers and acquisitions of aquaculture and poultry feed producers. These companies bring technical expertise, thereby improving growth prospects.

8 key findings about Vietnam animal feed market

Vietnam's animal feed market size is expected to reach US$10.55 billion by 2022, according to a new report by Grand View Research Inc.
A shift in trend towards consumption of poultry and cattle meat is expected to remain a key driving factor for the Vietnam animal feed market. Historically, domestic consumers depended largely on pork meat to meet nutritional requirements. The advent of increasing per capita disposable income level has transformed this shift in trend, which has propelled animal feed demand in the nation.
Increasing investments, particularly in research and development, are expected to drive production sustainability over the forecast period. Even though domestic production is expected to rise, the market faces challenges in the form of imports. Most of the animal feed consumed in Vietnam is sourced through imports from neighboring ASEAN nations.

Key findings from the report 

1. Vietnam’s animal feed market demand was 15,829.3 kilotons in 2014 and is expected to grow at a CAGR of 6.4 percent from 2015 to 2022.
2. Vietnam’s animal feed market is characterized by a high number of imports and numerous, often contradictory, regulations implemented by agencies such as Ministry of Agriculture and Rural Development (MARD).
3. Poultry feed accounted for highest share of 39.5 percent in 2014 and is expected to witness highest the growth of 6.6 percent CAGR over the forecast period. Pork feed followed the poultry feed segment in terms of market size and is projected to reach 8,605.7 kilotons by 2022 at 6.2 percent CAGR.
4. Commercial animal feed products include fodder and forage. Fodder was the largest product with global consumption estimated at 13,542.0 kilotons in 2014. Fodder is expected to grow at estimated CAGR of 6.6 percent over the forecast period.
5. Aquaculture feed is also rapidly gaining importance in Vietnam owing to innovative feeding systems developed to promote aquaculture nutrition and quality. The segment accounted for US$355.3 million in 2014, which is projected to rise to US$670.2 million by 2022.
6. The Vietnam animal feed market share is largely dominated by large multinational corporations with immense investments in the poultry, cattle and pork meat sectors. The industry is gradually moving toward consolidation with domestic manufacturers gaining strong foothold. Charoen Pokphand was the leading company with just below 20 percent of the market share in 2014.
7. Growing regulatory pressure on companies has led to the adoption of hygienic animal husbandry practices. Emerging technologies and demand for higher-quality meat products at lower prices has led to the development of efficient breeding processes utilizing statistical methods to determine genetic changes and characteristics.
8. Major international feed manufacturers are entering Vietnam by the means of mergers and acquisitions of aquaculture and poultry feed producers. These companies bring technical expertise, thereby improving growth prospects.