The global wagyu beef market size was valued at USD 12,638 million in 2021. It is projected to reach USD 21,310 million by 2030, growing at a CAGR of 5.9% during the forecast period (2022-2030).
Wagyu beef is a premium beef cut explicitly made from Japanese cattle breeds and offered on the market. In Japan, there are Japanese Black, Japanese Brown, Japanese Polled, and Japanese Shorthorn cattle. Japan's geographical isolation and regional climate have contributed to the evolution of its distinctive cow breeds. Therefore, their genetic makeup enabled them to produce intramuscular fat and a flavor not found in other cattle breeds.
Beef is advantageous to the body, in addition to its distinct flavor and appearance. This beef is higher in conjugated linoleic acid (CLA) than other beef products and is therefore considered healthier. In addition, many types of meat must be hung to help them age and tenderize their muscles. On the other hand, this meat is composed of intramuscular fat, making it lean and tender and eliminating the need for hanging.
While the retail consumer market is the mainstay of the mass meat industry and beef brands in particular, wagyu beef brands primarily target institutional consumers, such as hotels and hotel chains, and flourish on their backs. Our data shows approximately 85% of wagyu beef sales are to institutional B2B clients. Numerous wagyu beef firms have worked with hotel groups, restaurant chains, and specialty eateries with locations in airports, premium malls, supercenters, and metropolitan areas. Wagyu beef companies are involved in retail through various B2C distribution methods. The sales approach is heavily influenced by B2B and restaurant food chains, but companies are increasingly targeting upscale superstores and online retail platforms. Hotel chains, restaurants, airports, and internet retailers are the top four industries in developing and rising nations. The customers of a luxury hotel or a high-end fine dining establishment are well-informed about the advantages of wagyu beef over other types of meat and are, consequently, the natural market for premium wagyu beef.
The health benefits of consuming wagyu beef have been increasingly and efficiently traced and recorded to promote a global shift in focus toward good health. The increasing severity of chronic and infectious E. coli bacterial infections, malignancies, and disorders connected to a deficiency in vitamins A and E; fatty acids; and omega-3s and omega-6s has piqued the interest of wagyu beef producers. Companies offering new and improved wagyu beef varieties and products on the global market, which has boosted demand for premium wagyu beef, is the most critical element driving the growth of the global wagyu beef industry. Additionally, global demand for wagyu beef is increasing as many consumers accept premium wagyu beef. Wagyu beef is one of the most effective ways to maintain good health, which has resulted in global growth in the wagyu beef market. Numerous vendors working on in-depth R&D and introducing new, enhanced wagyu beef goods are anticipated to bolster the worldwide wagyu industry.
Markets in growing and developing nations, such as India, France, Spain, New Zealand, Singapore, Argentina, Thailand, Brazil, South Africa, and others with comparatively low GDP, are notoriously difficult to penetrate and expand sales in due to ever-changing consumer expectations. Depending on changes in trade policies and the political climate, the performance of Wagyu beef-importing businesses in these nations is constantly crucial. Due to a lack of investment in marketing and supply chains and the very competitive character of regional markets, producers and importers of Wagyu beef in these nations need more sales. In these nations, a lack of marketing investments and a high degree of competitiveness have led to a common understanding of wagyu beef's health benefits and penetration. One of the critical challenges constraining the worldwide wagyu beef industry in emerging regions is the need for more government assistance in most emerging and developing nations, where health is viewed as an underlying and neglected condition.
The global market for wagyu beef is witnessing a transition regarding the need for value-to-premium products. Demand for new flavors, product introductions, and items is a revolution. Market preferences rapidly shift towards healthier, tastier, and more suitable products. This is anticipated to affect the worldwide wagyu beef market socially and economically. Developed nations are viewed as trendsetters in the global market, where the economy proliferates. In the international wagyu beef market, inflation plays a significant role in altering market dynamics. Despite the high cost of products, consumers who desire more sustainable and high-quality items are willing to raise the bar. On the worldwide market, a new trend has emerged: brand loyalty is supplanted by consumers' willingness to try and adopt newly introduced products that offer a favorable price-to-performance ratio.
On the global wagyu beef market, online sales are a prevalent method of advertising and selling items. Targeting a specific audience is one of the most effective elements of online sales and e-commerce websites, which all participants in the worldwide wagyu beef market have implemented. The global market for wagyu beef is propelled by the presence of a large audience on a single platform. People are increasingly ordering wagyu beef and other products via e-commerce and internet platforms, driving growth in the worldwide wagyu beef business. The rapid expansion of e-commerce websites and businesses in establishing, developing, and emerging nations increases the global demand for wagyu beef goods.
The global wagyu beef market is segmented on the basis of information into type, nature, breed type, and distribution channel.
Based on type, the global market is segmented into cows and heifers, steers, and bulls.
Steers dominate the global market and are expected to grow at a CAGR of 6.3% during the forecast period. Steers hold about 52% of the market share.
Cows and heifers stand in second place with about 46% of the share.
Based on type, the global market is segmented into wagyu and kobe, crossbreeding, and 100% fullblood wagyu.
Kobe beef is a highly marbled variety of Wagyu beef originating from the Tajima strain of the Japanese Black breed of cattle. In addition to the species of cow, Kobe meat must be born and grown in the Hyogo Prefecture and slaughtered in local slaughterhouses. The Meat Quality Score (MQS) for Kobe beef is 4–5. The actual Kobe cattle must be bulls or heifers. (aka virgin cows). Each year, only 3,000 to 5,000 calves achieve these requirements; hence the price of Kobe Wagyu meat is relatively high.
Crossbred Wagyu is at least F1, indicating that it has been crossed with another breed, most frequently Black Angus in the United States. F1 Wagyu is comprised of fifty percent Wagyu and fifty percent Black Angus. F2 Wagyu are F1 cattle crossed with purebred Wagyu, producing progeny that is 75% Wagyu and 25% Black Angus. If struck again with another purebred Wagyu, the offspring will be classified as F3, 87.5 percent Wagyu and 12.5 percent Black Angus. Fourth-generation Wagyu, or F4 Wagyu, would be called purebred.
Full-blood Wagyu refers to the beef produced from Wagyu cattle whose ancestry can be traced back to Japan, delivering 100% Full-Blood Wagyu beef. This nutritious red meat's melt-in-your-mouth tenderness, superb fat marbling, and distinctive umami-rich flavor make it an ideal addition to roast, steak, and casserole recipes, dishes, and soup. They can only be produced by pairing two Wagyu parents.
Based on nature, the global market is segmented into organic and conventional.
Organic beef dominates the global market during the forecast period.
Grass-fed beef is commonly referred to as organic meat. Wagyu breed beef calves raised in this manner are more nutrient-dense, have more anti-inflammatory chemicals, and lack the pesticide residues and mycotoxins typically seen in grain-fed beef. Additionally, grass-fed beef is more environmentally friendly and contributes to healthier soil instead of depleting it. Organic Wagyu and wagyu beef products are priced higher than their regular counterparts.
Generally, grass-fed or grain-fed cattle's subcutaneous adipose tissue lipids have a melting point above 45 degrees Celsius. Conventional ground beef contains more than 0.5 g of trans-fatty acids and 2.5 g of saturated fatty acids, which concerns the health-conscious population. These changes in fatty acid content, resulting from variances in adipose tissue development between pasture-fed and conventional grain-fed and highly marbled calves, are known to have substantial effects on the nutritional value and eating quality of beef.
Based on breed types, the global market is segmented into Japanese breed, Australian breed, and others.
Japanese Breeds dominate the global market and are expected to grow at a CAGR of 6.8%, holding about 65-68% of the market share.
Based on distribution channels, the global market is segmented into store-based retail, hypermarkets and supermarkets, restaurants and food chain, and online.
The Store-based retail segment dominates the global market and is expected to grow at a CAGR of 6.7% during the forecast period.
The global retail food industry for Wagyu beef and products is extremely sophisticated and highly fragmented, with solid regional players occupying about 70% of the store-based retail sector. The primary drivers driving the store-based retail segment are the increasing number of stores across the globe and the vast number of stores offering various Wagyu beef brands at discounted prices and in bundle deals.
The online retail part of the worldwide Wagyu beef market is thriving and establishing itself as a viable segment. Several online retailers have begun selling Wagyu steak and have received a great reaction from consumers in the premium Wagyu beef market. Some primary drivers driving the online retail segment of the global market include the availability of multiple brands in one location, bulk shipping options, and lower prices on items.
The global wagyu beef market is segmented by regions into: North America, Europe, Asia-Pacific, and South America and the Middle East and Africa.
Asia-Pacific dominates the global market and is expected to grow at a CAGR of 7.7% during the forecast period. Due to the existence of fast-rising economies such as Japan, China, Singapore, and Thailand, the industry is predicted to expand. Future expansion of the wagyu beef market is anticipated to be fueled by a shift in Asia-Pacific consumer purchasing patterns toward the e-commerce sector and favorable government legislation. Made in China 2025, for instance, is a ten-year national plan designed to enable China to become a worldwide manufacturing force. This plan is anticipated to increase product exports from China, increasing demand for wagyu beef as a marketing and customer service approach. Numerous wagyu beef brands are introduced to the market in Japan and China, bolstering the Asia-Pacific wagyu beef industry. In Asia-Pacific, the demand for healthy wagyu beef is gradually expanding, benefiting the market. With new goods in the premium beef market, consumers concerned with health advantages no longer have to worry about nutrition. Today, new product launches in the Asia-Pacific market focus on food, a balanced diet, and the absence of side effects such as weight gain. The Asia-Pacific wagyu beef market is ultimately driven by the increasing number of health-conscious consumers who prioritize healthy meat consumption and other health benefits, including disease prevention.
North America stands in second place and is expected to grow at a CAGR of 4.8% during the forecast period. The North American wagyu beef market holds a large share of the global market due to high- and middle-income households' increased consumption and adoption of wagyu beef products. Some primary factors propelling the wagyu beef market in North America are technological breakthroughs, strategic marketing, and growing knowledge of the benefits of ingesting wagyu beef. High consumption of wagyu beef in North America, particularly in the United States, expands the North American market. The presence of internationally renowned wagyu beef product makers and exporters in North America supports the expansion of the North American market. In the past decade, the U.S. and Canadian governments began promoting healthy meat consumption, increasing the demand for wagyu beef. Wagyu beef is attracting the attention of health-conscious people since it is rich in fiber, zinc, folate, and protein and is constantly searching for healthy meat options, including various minerals. Increasing consumer focus on fitness and healthy lifestyles can significantly expand wagyu beef consumption in the United States and Canada.
Europe stands at the third place with about 20% of the global consumption. The European wagyu beef industry is being pushed by significant regional market participants and manufacturers' and importers' aggressive marketing activities to attract consumers. The increasing demand for wagyu beef in Europe is mainly driven by rapidly shifting lifestyle trends, the adoption of western culture and eating habits, and increased awareness of the product. In addition, increased competitive advantage on the European market and manufacturers employing effective tactics to maintain competitive advantage is anticipated to stimulate the European wagyu beef market further. Established firms in the wagyu beef sector have planned strategically to launch new goods in the European market to attract customer interest and increase income. The level of competition in the European market is increasing annually due to the growing number of new entrants and their novel goods.
Report Metric | Details |
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CAGR | 5.9% |
Forecast Period | 2023-2031 |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
Segments Covered |
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Geographies Covered |
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