A small market town located at the northern fringe of Carmarthenshire within the Teifi valley which serves a wide rural community on both sides of the river including Pencarreg, Llanllwni, Highmead and Alltyblaca.
The economy is primarily based around the agricultural sector and the towns major businesses are the Livestock Mart and its significant employer, Dunbia (meat processing). Llanybydder is positioned on the A485 that connects the town with Carmarthen although its closest centre is Lampeter to the northeast (5 miles) which locally acts as the main employment, retail and service centre.
It is characterised by a small retail centre geared towards the local day to day shopping, trade and service needs of the rural community. Outside of the town, the locality supports a wide range of agricultural and land-based industries, engineers, construction and manufacturing. There are several examples of food and drink, and tourism together with professional and lifestyle businesses. Llanybydder serves an important localised retail and service, social, employment and education role for the wider rural area including its surrounding settlements.