Wagyu Beef Market

Market Overview

The global wagyu beef market size was valued at USD 13442.4 million in 2022. It is projected to reach USD 24,312.4 million by 2031, growing at a CAGR of 6.2% during the forecast period (2023-2031). Increasing consumer demand for premium-quality meat and unique dining experiences is driving the growth of the Wagyu beef market.

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.

Market Dynamics

Global Wagyu Beef Market Drivers

Demand from the Luxury Hospitality Sector

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.

Health Benefits of 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 omga-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.

Global Wagyu Beef Market Restraint

Low Awareness and Penetration in Developing Countries

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.

Global Wagyu Beef Market Opportunities

Premiumization of the Global Wagyu Beef Market

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.

Increasing Adoption of E-commerce Websites

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.

Regional Analysis

The global wagyu beef market is segmented by regions into: North America, Europe, Asia-Pacific, and Latin America and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific dominates the global market and is expected to grow at a CAGR of 7.4% 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 4.0% 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. 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.

Segmental Analysis

The global wagyu beef market is segmented on the basis of information into type, nature, grade, and distribution channel.

Based on type, the global market is segmented into Japanese Wagyu, American Wagyu, and Others.

Japanese Wagyu beef is known globally for its marbling and softness. This Japanese section represents the best Wagyu meat. The detailed and unique classification system includes Kobe and Matsusaka breeds. Japanese Wagyu beef offers a luxurious dining experience, making it a popular choice in top restaurants and culinary endeavors worldwide. Japanese Wagyu beef is driven by its high quality and strict husbandry procedures that give it unique flavor and consistency.

Sometimes called "American Kobe," American Wagyu has gained a strong market presence. It comes from crossing American and Japanese Wagyu cattle. The combination of American ranching methods and Japanese heritage produces meat that balances the flavor and marbling of Japanese Wagyu beef with the accessibility and scale of US cattle production. American Wagyu expands the market by combining high quality with abundant supply. Customers seeking a compromise between Japanese Wagyu and American beef are increasingly buying this sector.

Others include cross-breeds and Wagyu cattle from various regions that are not Japanese or American. Wagyu from Canada, Australia, and other countries may be mixed with proprietary cross-breeds. Although less famous than Japanese or American Wagyu, these types add diversity to the worldwide market. These restaurants satisfy clients who want Wagyu and regional flavors, growing the premium beef market.

Based on Nature, the global market is segmented into Organic and Conventional.

Organic Wagyu beef comes from organically grown cattle. It requires organic nutrition, unhindered pasture access, and no synthetic chemicals, hormones, or antibiotics. Organic Wagyu beef is in demand due to consumer interest in healthier, greener options. Health-minded and environmentally conscientious consumers view organic Wagyu beef as more natural, sustainable, and additive-free.

Conventional Wagyu meat comes from cattle raised using conventional feed, restricted antibiotics, and non-organic methods. Traditional Wagyu beef is not certified organic and maintains a large market share. It attracts more customers by balancing price with superior meat.

Based on Grade, the global market is segmented into Grade A, Grade B, and Grade C.

Grade A Wagyu beef is known for its softness, marbling, and flavor. This product is carefully raised from purebred Wagyu cattle and is popular in high-end restaurants and discerning consumers. Top-quality Wagyu beef is served in high-end restaurants.

Grade B Wagyu beef is high-quality, however it may have less marbling and richness than Grade A. Elite restaurants and gourmet shops use it because of its unique flavor and consistency. Grade B Wagyu beef is a great value between quality and price.

C-grade Wagyu meat is soft and flavorful but lacks the shine and quality of Grade A or Grade B cattle. It may come from crossbred or poorly raised animals. Grade C Wagyu beef is cheaper, making it suitable for informal eating and at-home cooking.

Based on distribution channels, the global market is segmented into Online and Offline.

Online Wagyu beef sales have grown due to e-commerce and food delivery services. From the comfort of their homes, consumers may order premium Wagyu beef steaks from a wide assortment that is delivered quickly. Online platforms offer Wagyu beef fans detailed product descriptions, cooking tips, and user reviews, improving the purchase experience.

Specialty stores, butcheries, premium restaurants, and traditional retail stores are offline distribution routes. These restaurants let customers choose Wagyu beef cuts, get expert advice, and see the meat being prepared. Offline shoppers value customization and visual inspection of meat before buying.

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.