Wagyu Beef Market: Information by Nature (Organic, Conventional), Type (Wagyu and Kobe, Crossbreeding), Distribution Channel (Online Retail), and Region — Forecast till 2029

Nov 25, 2020   Market Overview The wagyu beef market is growing exponentially backed by the changing consumer preference and improved standard of living. Wagyu beef is Japanese beef cattle breed-derived from Asian cattle. It comprises specific unique characteristics, which include intense fat marbling. The wagyu beef market is presently in the growing phase and is expected to observe rapid growth in the coming future. The outlook of the wagyu beef market is buoyant, primarily underpinned by the growth in hous...
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Market Overview

The wagyu beef market is growing exponentially backed by the changing consumer preference and improved standard of living. Wagyu beef is Japanese beef cattle breed-derived from Asian cattle. It comprises specific unique characteristics, which include intense fat marbling. The wagyu beef market is presently in the growing phase and is expected to observe rapid growth in the coming future. The outlook of the wagyu beef market is buoyant, primarily underpinned by the growth in household wealth and beef consumption globally. There are around two million full blood 100% wagyu globally, of which more than 90% are in Japan.

Currently, the U.S. and Australia are the largest exporters of wagyu beef, with almost 80–90% of Australian exports going to the U.S. The rapid rise in the demand for dry-aged wagyu beef, particularly in the developed nation, is boosting the market growth. Consumers' higher spending on premium beef and eating patterns provide an impetus to the market growth. As per the Food and Agriculture Organization (FAO) statistics, global beef consumption is forecasted to grow by 3.3 million tons by the year 2023. The rapidly expanding tourism in the Asia-Pacific region has surged the demand for Wagyu beef within the last five years. The below-mentioned info-graph depicts the global beef consumption in 2019 and the forecast for the year 2023. (million tons)

Global-Beef-Consumption-2019-2023

In the last few years, there has been a swift change in consumer eating patterns and habits as individuals, particularly the working class, are drifting away from home consumption. As consumers are becoming aware and more health-conscious, they are willing to spend more on premium quality food products with essential nutrients and taste. Rising population and increasing consumer disposable income are key factors boosting the demand for wagyu beef.  

In Hong Kong, the demand for Wagyu beef is strongly supported by the country's economic growth. Presently, there are no domestic producers in the country, resulting in huge imports of the product. Moreover, the expansion of the animal husbandry activities in the key producing areas of APAC is likely to bring down the prices, which will provide a larger customer base for the market. For instance, the Australian Wagyu Association (AWA) forecasts that Wagyu beef will account for 7% of feedlot cattle by 2020.

Plethora of Health Benefits of Wagyu to Facilitate Market Growth

Apart from the high tenderness and enriched flavor of the wagyu beef, it is gaining traction among consumers, owing to its array of health benefits. High consumption of wagyu beef is considered as a healthy alternative in a balanced diet. The unique advantage of Wagyu beef is that it is the highest source of omega 3 fatty acids and higher proportions of mono-unsaturated fats. This aids in the protection against Alzheimer's, heart diseases, depression, arthritis, and blood pressure.

In addition to this, it reduces cholesterol levels in the body, prevents coronary diseases, and promotes weight loss. The significant amount of oleic acid in wagyu beef improves the immune system and reduces the risk of Type-2 diseases. Red Wagyu beef has the lowest cholesterol of almost all other kinds of meat, making it an ideal alternative for individuals with heart diseases.

Table 1:Cholesterol Content in Different Kinds of Meat

Meat Type

per 100 grams

Wagyu 

10 mg

Fish       

28 mg

Turkey

36 mg

Chicken

32 mg

Buffalo

39 mg

Rapid Growth in the Luxury Hospitality Sector to Propel the Market Growth

Wagyu beef is typically sold in five-star restaurants and represents the culture of fine-dining. Recently, the foodservice market is growing at a tremendous rate because of the continuous innovations and customization of menus for people. The rising demand for nutritious and quality meals has compelled hospitality and foodservice sectors to alter their offerings. Furthermore, the companies seeking higher revenues are investing in marketing campaigns, which is building a platform for the wagyu beef market. Today, consumers are spending on luxury holidays and food services to receive better quality food products.

Currently, the market is developing and comprises fewer suppliers and distributors across the globe. Several restaurant chains and hotel owners are seeking suppliers of wagyu beef for uninterrupted and smooth supply, thus presenting ample growth opportunities.  Japanese wagyu beef is mostly used in restaurants and hotels, while the Australian wagyu is increasingly found in retail stores, supermarkets, and butcher shops of the leading Asian markets, such as China, Korea, Thailand, and Japan.

Wagyu Beef Market: Segmentation

Faster Delivery Options and Ease of Buying to Drive the Online Segment Growth

As the e-commerce market is booming at a tremendous growth rate, it has compelled the manufacturers to adopt an omnichannel distribution strategy for higher revenues. Consumers are now spending more and more time on the internet and are highly engaged in online shopping. Online stores have become popular in terms of consumers, owing to their faster delivery options and a wide range of products available at competitive prices. Higher internet users, particularly in the developed regions of North America and Europe, have encouraged players to expand their online presence. The key players are partnering with other popular e-commerce websites to enhance the overall digital presence.

Figure 1: Share of the World Population Using the Internet, 20102016

Share-of-the-World-Population-Using-the-Internet-2010-2016

Source- World Bank

Figures recorded by the World Bank Database states that around 45.7% of the world is using the internet, which is building a potential platform for wagyu beef producers. Today, key players are integrating their website with online shopping options for better customer service and convenience. The emergence of the D2C sales channel in the food and beverage market is prompting higher segmental growth during the forecast period.

Regional Overview

Asia-Pacific: World's Largest Consumer for Wagyu Beef Market

Asia-Pacific decisively dominates the wagyu beef market, backed by the origin of the wagyu cattle breed. Japan is the frontrunner in the market and has high exports of wagyu beef, prominently in the developed regions. The quality of the elite Wagyu or Kobe is only found in Japan due to its geographic location and stipulations. In the region, full blood 100% beef type is popular and holds 96% of the wagyu breed cattle globally. Outside Japan, Australia accounts for the second-highest population of the Wagyu beef cattle. The country offers the optimal breed environment that is free of diseases, hence presenting good prospects for the industry.

Apart from the production side, the region is expected to lead the market in consumption terms as well. Food consumption patterns in the region are distinct, yet show similar characteristics to the consumption patterns of the developed countries. In Japan, over 70% of the population in the country consumes Wagyu beef regularly. The country has lower exports of wagyu beef as compared to the U.S. and Australia, owing to its large domestic demand.

According to the FAO reports, people living in Japan consume less food than Americans, around 1000 kilocalories less. Japanese spend more of their incomes on food and beverages, which means high food prices in Japan. The individuals in the country desire varied and high-quality food products, thereby creating a market for premium beef. Debouching trends of the food industry and growing convenient fast-food joints are building a platform for the regional wagyu beef market. The below-mentioned info-graph depicts the estimated market potential for the regions during the forecast period. 

wagyu-beef-market-estimated-market-potential-for-the-regions-during-the-forecast-period

North America to Present Lucrative Market Opportunities for Wagyu Beef

North America's Wagyu beef is driven by the increased importance for high nutritional value food and a rise in the demand for premium food products. Country-wise, the U.S. and Canada are expected to spearhead the wagyu beef market during the forecast period. In the past few years, the region is witnessing an upward trend in the consumption of beef on account of improved supply chain and expanding meat industry. The below-mentioned infographic depicts the U.S. Beef production for the period 2000–2018. (billion pounds)

Figure 2: U.S. Beef Production, 20002018 (Billion Pounds)

US-Beef-Production-2000-2018

Figures recorded by the North American Meat Institute states that the American meat companies produced around 26.8 billion pounds of beef in 2018, up by 7.2% increase in the production from the year 2014. Presently, there is around 40,000 Wagyu beef in the U.S. on account of the growing domestic demand. The country imports a considerable number of the breed from the South America region. The Wagyu beef industry of the U.S. is enjoying strong growth of 20%, along with the number of 100% full blood Wagyu increasing rapidly.   

Key Players

  • Blackmore Wagyu, Itoham Foods Inc.
  • Snake River Farms
  • Starzen Co. Ltd.
  • DeBragga and Spitler
  • Sysco Corporation
  • Chicago Steak Company
  • Creek Bed Country Farmacy, LLC
  • Fairway Packing Company\The Butcher's Market
  • West Coast Prime Meat
  • American Grass Fed Beef
  • DrybagSTeak, LLC

Wagyu Beef Market: Segmentation

By Nature

  • Organic
  • Conventional

By Type

  • Wagyu and Kobe
  • Crossbreeding
  • 100% Fullblood Wagyu

By Distribution Channel

  • B2B
  • B2C
    • Store-Based Retail
    • Hypermarkets and Supermarkets
    • Restaurants
    • Food Chain
  • Online Retail

By Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle-East and Africa

Frequently Asked Questions (FAQs)

Online Retail Segment is expected to be the leading segment in Wagyu Beef Market during the forecast period.
Blackmore Wagyu, Itoham Foods Inc., Snake River Farms, Starzen Co. Ltd., DeBragga and Spitler, Sysco Corporation, Chicago Steak Company, Creek Bed Country Farmacy, LLC, West Coast Prime Meat, American Grass Fed Beef are the top players in Wagyu Beef Market.
Asia-Pacific is expected to hold the highest market share in Wagyu Beef Market.
The rapid rise in the demand for dry-aged wagyu beef, rising population, and increasing consumer disposable income are the key factors expected to drive Wagyu Beef Market during the forecast period.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.

Market Overview

The wagyu beef market is growing exponentially backed by the changing consumer preference and improved standard of living. Wagyu beef is Japanese beef cattle breed-derived from Asian cattle. It comprises specific unique characteristics, which include intense fat marbling. The wagyu beef market is presently in the growing phase and is expected to observe rapid growth in the coming future. The outlook of the wagyu beef market is buoyant, primarily underpinned by the growth in household wealth and beef consumption globally. There are around two million full blood 100% wagyu globally, of which more than 90% are in Japan.

Currently, the U.S. and Australia are the largest exporters of wagyu beef, with almost 80–90% of Australian exports going to the U.S. The rapid rise in the demand for dry-aged wagyu beef, particularly in the developed nation, is boosting the market growth. Consumers' higher spending on premium beef and eating patterns provide an impetus to the market growth. As per the Food and Agriculture Organization (FAO) statistics, global beef consumption is forecasted to grow by 3.3 million tons by the year 2023. The rapidly expanding tourism in the Asia-Pacific region has surged the demand for Wagyu beef within the last five years. The below-mentioned info-graph depicts the global beef consumption in 2019 and the forecast for the year 2023. (million tons)

Global-Beef-Consumption-2019-2023

In the last few years, there has been a swift change in consumer eating patterns and habits as individuals, particularly the working class, are drifting away from home consumption. As consumers are becoming aware and more health-conscious, they are willing to spend more on premium quality food products with essential nutrients and taste. Rising population and increasing consumer disposable income are key factors boosting the demand for wagyu beef.  

In Hong Kong, the demand for Wagyu beef is strongly supported by the country's economic growth. Presently, there are no domestic producers in the country, resulting in huge imports of the product. Moreover, the expansion of the animal husbandry activities in the key producing areas of APAC is likely to bring down the prices, which will provide a larger customer base for the market. For instance, the Australian Wagyu Association (AWA) forecasts that Wagyu beef will account for 7% of feedlot cattle by 2020.

Plethora of Health Benefits of Wagyu to Facilitate Market Growth

Apart from the high tenderness and enriched flavor of the wagyu beef, it is gaining traction among consumers, owing to its array of health benefits. High consumption of wagyu beef is considered as a healthy alternative in a balanced diet. The unique advantage of Wagyu beef is that it is the highest source of omega 3 fatty acids and higher proportions of mono-unsaturated fats. This aids in the protection against Alzheimer's, heart diseases, depression, arthritis, and blood pressure.

In addition to this, it reduces cholesterol levels in the body, prevents coronary diseases, and promotes weight loss. The significant amount of oleic acid in wagyu beef improves the immune system and reduces the risk of Type-2 diseases. Red Wagyu beef has the lowest cholesterol of almost all other kinds of meat, making it an ideal alternative for individuals with heart diseases.

Table 1:Cholesterol Content in Different Kinds of Meat

Meat Type

per 100 grams

Wagyu 

10 mg

Fish       

28 mg

Turkey

36 mg

Chicken

32 mg

Buffalo

39 mg

Rapid Growth in the Luxury Hospitality Sector to Propel the Market Growth

Wagyu beef is typically sold in five-star restaurants and represents the culture of fine-dining. Recently, the foodservice market is growing at a tremendous rate because of the continuous innovations and customization of menus for people. The rising demand for nutritious and quality meals has compelled hospitality and foodservice sectors to alter their offerings. Furthermore, the companies seeking higher revenues are investing in marketing campaigns, which is building a platform for the wagyu beef market. Today, consumers are spending on luxury holidays and food services to receive better quality food products.

Currently, the market is developing and comprises fewer suppliers and distributors across the globe. Several restaurant chains and hotel owners are seeking suppliers of wagyu beef for uninterrupted and smooth supply, thus presenting ample growth opportunities.  Japanese wagyu beef is mostly used in restaurants and hotels, while the Australian wagyu is increasingly found in retail stores, supermarkets, and butcher shops of the leading Asian markets, such as China, Korea, Thailand, and Japan.

Wagyu Beef Market: Segmentation

Faster Delivery Options and Ease of Buying to Drive the Online Segment Growth

As the e-commerce market is booming at a tremendous growth rate, it has compelled the manufacturers to adopt an omnichannel distribution strategy for higher revenues. Consumers are now spending more and more time on the internet and are highly engaged in online shopping. Online stores have become popular in terms of consumers, owing to their faster delivery options and a wide range of products available at competitive prices. Higher internet users, particularly in the developed regions of North America and Europe, have encouraged players to expand their online presence. The key players are partnering with other popular e-commerce websites to enhance the overall digital presence.

Figure 1: Share of the World Population Using the Internet, 20102016

Share-of-the-World-Population-Using-the-Internet-2010-2016

Source- World Bank

Figures recorded by the World Bank Database states that around 45.7% of the world is using the internet, which is building a potential platform for wagyu beef producers. Today, key players are integrating their website with online shopping options for better customer service and convenience. The emergence of the D2C sales channel in the food and beverage market is prompting higher segmental growth during the forecast period.

Regional Overview

Asia-Pacific: World's Largest Consumer for Wagyu Beef Market

Asia-Pacific decisively dominates the wagyu beef market, backed by the origin of the wagyu cattle breed. Japan is the frontrunner in the market and has high exports of wagyu beef, prominently in the developed regions. The quality of the elite Wagyu or Kobe is only found in Japan due to its geographic location and stipulations. In the region, full blood 100% beef type is popular and holds 96% of the wagyu breed cattle globally. Outside Japan, Australia accounts for the second-highest population of the Wagyu beef cattle. The country offers the optimal breed environment that is free of diseases, hence presenting good prospects for the industry.

Apart from the production side, the region is expected to lead the market in consumption terms as well. Food consumption patterns in the region are distinct, yet show similar characteristics to the consumption patterns of the developed countries. In Japan, over 70% of the population in the country consumes Wagyu beef regularly. The country has lower exports of wagyu beef as compared to the U.S. and Australia, owing to its large domestic demand.

According to the FAO reports, people living in Japan consume less food than Americans, around 1000 kilocalories less. Japanese spend more of their incomes on food and beverages, which means high food prices in Japan. The individuals in the country desire varied and high-quality food products, thereby creating a market for premium beef. Debouching trends of the food industry and growing convenient fast-food joints are building a platform for the regional wagyu beef market. The below-mentioned info-graph depicts the estimated market potential for the regions during the forecast period. 

wagyu-beef-market-estimated-market-potential-for-the-regions-during-the-forecast-period

North America to Present Lucrative Market Opportunities for Wagyu Beef

North America's Wagyu beef is driven by the increased importance for high nutritional value food and a rise in the demand for premium food products. Country-wise, the U.S. and Canada are expected to spearhead the wagyu beef market during the forecast period. In the past few years, the region is witnessing an upward trend in the consumption of beef on account of improved supply chain and expanding meat industry. The below-mentioned infographic depicts the U.S. Beef production for the period 2000–2018. (billion pounds)

Figure 2: U.S. Beef Production, 20002018 (Billion Pounds)

US-Beef-Production-2000-2018

Figures recorded by the North American Meat Institute states that the American meat companies produced around 26.8 billion pounds of beef in 2018, up by 7.2% increase in the production from the year 2014. Presently, there is around 40,000 Wagyu beef in the U.S. on account of the growing domestic demand. The country imports a considerable number of the breed from the South America region. The Wagyu beef industry of the U.S. is enjoying strong growth of 20%, along with the number of 100% full blood Wagyu increasing rapidly.   

Key Players

  • Blackmore Wagyu, Itoham Foods Inc.
  • Snake River Farms
  • Starzen Co. Ltd.
  • DeBragga and Spitler
  • Sysco Corporation
  • Chicago Steak Company
  • Creek Bed Country Farmacy, LLC
  • Fairway Packing Company\The Butcher's Market
  • West Coast Prime Meat
  • American Grass Fed Beef
  • DrybagSTeak, LLC

Wagyu Beef Market: Segmentation

By Nature

  • Organic
  • Conventional

By Type

  • Wagyu and Kobe
  • Crossbreeding
  • 100% Fullblood Wagyu

By Distribution Channel

  • B2B
  • B2C
    • Store-Based Retail
    • Hypermarkets and Supermarkets
    • Restaurants
    • Food Chain
  • Online Retail

By Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • The Middle-East and Africa

Frequently Asked Questions (FAQs)

Online Retail Segment is expected to be the leading segment in Wagyu Beef Market during the forecast period.
Blackmore Wagyu, Itoham Foods Inc., Snake River Farms, Starzen Co. Ltd., DeBragga and Spitler, Sysco Corporation, Chicago Steak Company, Creek Bed Country Farmacy, LLC, West Coast Prime Meat, American Grass Fed Beef are the top players in Wagyu Beef Market.
Asia-Pacific is expected to hold the highest market share in Wagyu Beef Market.
The rapid rise in the demand for dry-aged wagyu beef, rising population, and increasing consumer disposable income are the key factors expected to drive Wagyu Beef Market during the forecast period.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.