Asia-Pacific to Grab the Lion’s Share in the Wagyu Beef Market

Introduction

Asia-Pacific is expected to be the fastest-growing market for wagyu beef during the forecast period. Continuous population growth, steady economic progress, changing eating habits, and improving living standards, especially across the developing economies, are the factors contributing to the growth of the wagyu beef market. The regional wagyu beef market is led by countries such as Japan, Australia, and China. Apart from these leading countries, wagyu beef is largely imported in terms of volume in Indonesia, Malaysia, Singapore, and South Korea.

Singapore’s demand for Wagyu beef is growing at a rapid pace in high-end restaurants and specialized supermarkets. Presently, the U.S., Australia, and Japan are the top exporting countries of wagyu beef in Singapore. The wagyu beef consumption in Singapore represents about 5% of total consumption.

Impact of COVID-19

The pandemic crisis that started last year has raised many questions on the meat industry and the practices. The global demand for premium meat, such as wagyu beef, has plunged as many restaurants have shut and economies sliding into recessions. Additionally, the strict lockdown measures, owing to the accentuate growth of the virus, have plummeted the global economic activity. The luxury food industry may be the worst hit as it heavily relies on restaurants and hotels. The overall situation has created volatility in the meat industry, which has put the normal business growth plans in the meat industry this year go too awry.

Some wagyu beef producers are tapping consumers through D2C channels, while some are compelled to cut down the output to stay afloat. The market is expected to be largely affected as people are less likely to go out and consume luxury food products while worried about financial crises. Moreover, the falling demand has largely affected the prices of luxury items. For instance, in Tokyo, the price of wagyu beef has fallen by about 30% from 2019, thus significantly impacting the profit margins of the manufacturers.

Key Highlights

• The Wagyu beef market is expected to grow with a CAGR of xx%, owing to the plethora of benefits of the wagyu beef and increased demand for premium products
• The online retail sales segment is gaining prominence and projected to hold the largest market share
• Asia-Pacific dominates the Wagyu beef market strongly supported by higher breed production and changing consumer eating patterns, particularly in Japan

Competitive Players

1. Agri Beef Co.
2. Imperial Wagyu Beef, LLC
3. Australian Agricultural Company Limited 
4. Starzen Co., Ltd
5. Blackmore Wagyu
6. Stockyard Pty Ltd
7. Lone Mountain Wagyu, LLC
8. Jack's Creek
9. Black Hawk Farms
10. Toriyama Umami Wagyu
11. K.C. Cattle Company
12. Ohmi Beef
13. Mishima Reserve
14. Holy Grail Steak Co.
15. Wagyu Sekai

Recent Developments

• June 2022- Matilda 159 Domain, a restaurant in the United States, offered a limited-time Blackmore Wagyu tomahawk steak. This limited-time promotion contributed to positive consumer word-of-mouth and increased interest in trying these products.
• September 2021- Blackmore Wagyu, one of the most known suppliers of Australian Wagyu beef, introduced a new grass-fed breed of this product. Australian fine dining establishments strongly demand grass-fed beef; therefore, the recent launch will help Blackmore expand its sales and earnings.

Segmentation

1. By Type
   1. Japanese Black
   2. Japanese Brown
   3. Japanese Shorthorn
   4. Japanese Polled
   5. American Wagyu
   6. Australian Wagyu
2. By Grade
   1. A5 Grade
   2. A4 Grade
   3. A3 Grade
   4. A2 Grade
   5. A1 Grade
3. By Distribution Channel
   1. Supermarkets and Hypermarkets
   2. Specialty Stores
   3. Online Stores
   4. Others
4. By Application
   1. Food Service Industry
   2. Household
   3. Processed Products
5. By Pricing
   1. Premium
   2. Mid-range
   3. Economy
6. By End-User
   1. Retail Consumers
   2. Commercial Buyers