Malnutrition is common in Addis Ababa, Ethiopia, in part due to suboptimal diets limited in essential nutrients. Despite previous dietary diversification efforts, animal source food (ASF) consumption remains low, potentially due to supply-side factors affecting ASF market vendors. This study sought to identify supply-side policies and interventions to support urban ASF market vendors and to alleviate the challenges they face. We conducted a qualitative study among 40 urban food market vendors (interviewed in February 2018) to investigate their perceptions of changes in ASF markets over time, the reasons behind these changes, and the challenges faced. Data were analysed using inductive thematic analysis. Findings showed that market vendors agreed that all ASF prices have increased in the past two years, driven by supply shortages, high input costs, consumer demand for ASFs and socio-economic status, among other less prominent causes. Vendors perceived their main challenges to be food supply, religious fasting, consumer demand, price increases and fluctuations, transportation, market infrastructure, and government policies. We identified several potential supply-side interventions and policies that can help optimize ASF markets and eliminate market inefficiencies, including: improving storage facilities to reduce dependability on seasonality; improving road infrastructure to reduce transportation costs and difficulties; stabilizing input costs; and improving the physical market infrastructure to ensure opportunities for business growth. These market-based policies and interventions can help support and stabilize ASF markets by alleviating the barriers faced by urban vendors.