Vietnam’s Meat Imports: Why Demand is Rising and What It Means for the Market
By the end of 2024, the country is expected to spend $1.7 billion on imported meat and by-products, marking a 14.2% increase compared to last year.
Vietnam’s growing appetite for imported meat is reshaping its food market. By the end of 2024, the country is expected to spend $1.7 billion on imported meat and by-products, marking a 14.2% increase compared to last year, according to the General Department of Customs. This surge reflects shifting consumer habits and economic trends, as Vietnam continues to rely on global suppliers to meet its protein demands.
Who Supplies Vietnam’s Meat?
India has firmly positioned itself as Vietnam's largest supplier, providing almost a quarter of all meat imports. From January to October 2024 alone, 160,000 tonnes of Indian meat worth $531.5 million made its way into Vietnam. This represents a 13% increase in volume and a significant 28% jump in value year-on-year.
For pork—a key staple in Vietnam’s diet—Brazil takes the top spot, supplying 39.28% of total pork imports. Russia follows closely behind with 29.88%, showcasing a competitive market. Vietnam doesn’t stop there; its supply chain is highly diversified, with meat imports flowing in from over 40 countries, including the U.S., Canada, Poland, South Korea, Australia, and European nations.
Changing Trends in Meat Imports
While pork remains essential, there are noticeable shifts in the types of meat Vietnam is importing. Fresh chilled pork imports have actually declined this year, while demand for frozen poultry, buffalo meat, and edible by-products (like organs and other cuts) has seen an upward trend. These changing preferences suggest that Vietnamese consumers and businesses are looking for cost-effective alternatives as prices fluctuate.
What’s Driving the Surge in Imports?
The rise in meat imports can be linked to several key factors:
Free Trade Agreements (FTAs): Vietnam’s active participation in global trade has resulted in reduced tariffs on imported meat. Lower costs have made it more attractive for domestic businesses to source meat internationally.
Growing Demand for Protein: As incomes rise and diets evolve, demand for protein-rich foods like meat has skyrocketed. Vietnam’s population growth and urbanization are also fueling this trend.
Competitive Pricing: Imported meat often comes at a lower price point compared to locally produced options, encouraging businesses to opt for international suppliers to meet consumer needs.
Domestic Challenges and Opportunities
Vietnam is among the top 10 pork consumers in the world, with pork production expected to grow at an annual rate of 3.1%. By 2025, production could hit 4 million tonnes, rising to 4.7 million tonnes by 2030, according to the OECD. However, despite this growth, domestic producers face significant challenges.
Competition from cheaper imported meat has put pressure on local livestock businesses, which struggle with rising production costs and efficiency issues. On the other hand, this growing market presents opportunities for local producers to innovate, improve quality, and compete with international suppliers.
Looking Ahead
Vietnam’s reliance on imported meat will likely continue, but it also highlights the need for the country to strengthen its livestock industry. With global trade shaping market trends, domestic producers must adapt to meet the growing demand while maintaining competitiveness. For now, imports provide a critical solution, ensuring Vietnamese consumers have access to affordable and diverse protein sources.
As 2024 progresses, Vietnam’s meat market will remain a key player in global trade, balancing opportunities for international suppliers and challenges for local producers in an evolving food landscape.