Vietnam’s animal protein market enters high-growth era

Rapid modernization

Vietnam’s livestock sector is undergoing rapid modernization, wrote Rabobank’s analysts Chenjun Pan and Oscar Tjakra in the report.

Larger-scale, integrated, and tech-enabled production models are steadily replacing traditional smallholder farming.

In the pork sector, consolidation is ongoing, improving efficiency, biosecurity, and production capacity among leading domestic and foreign players.

Poultry continues to grow strongly but faces volatility due to rapid capacity buildup and competition from imports.

Meanwhile, the feed industry continues to face structural overcapacity and remains heavily reliant on imports, further accelerating the shift toward vertically integrated feed-farm-food systems.

Evolving consumer behavior

Consumer behavior is evolving, the analysts observed.

Modern retail, e-commerce, and foodservice channels are gaining share as consumers place greater emphasis on food safety, convenience, and traceability.

Going forward, demand growth will increasingly come from premium and value-added products rather than from volume alone.

Over the next five years, Vietnam’s animal protein supply chains are expected to continue formalizing and integrating, reinforcing efficiency, quality, and competitiveness across the sector.