Australia Wagyu Beef Market

Market Overview

The Australia wagyu beef market size was valued at USD 869 million in 2021. It is projected to reach USD 1,705 million by 2030, growing at a CAGR of 7.9% during the forecast period (2022-2030).

Highlights

• Steers dominate the market by type.
• Japanese breed dominates the market by breed type.
• Store-based retail dominates the market by distribution channel.

Wagyu beef is a premium beef cut explicitly made from Japanese cattle breeds and offered on the market. Wagyu 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.

Australia's Wagyu program was initiated in the 1990s, when genetics were obtained from Japan and the United States, and Japanese Fullblood cattle was imported. The Japanese provinces of Tajima, Tottori, Shimane, and Okayama, located on the main island of Honshu, are the origin of the most popular Wagyu lineages in the country. The Australian program has since evolved into a respected enterprise, with increasing domestic and worldwide demand for Wagyu beef.

Market Dynamics

Australia 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. 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.

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 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 wagyu beef industry.

Australia Wagyu Beef Market Restraint

Lack of Investment in Marketing and Supply Chains

Markets in growing and developing nations 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. 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.

Australia Wagyu Beef Market Opportunities

Premiumization of the Wagyu Beef Market

The 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 wagyu beef market socially and economically. Despite the high cost of products, consumers who desire more sustainable and high-quality items are willing to raise the bar. On the wagyu beef 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.

Regional Analysis

The Australian wagyu beef market is expected to grow at a CAGR of 7.9% during the forecast period. Australia has the world's second-largest Wagyu population and the largest Fullblood Wagyu population outside of Japan. Due to its soaring popularity, Australian Wagyu producers need help to satisfy domestic and international demand for premium meat. Irongate Wagyu, located near Albany in the Great Southern region of Western Australia, produces full-blood Wagyu that may fetch as much as USD 450 per kilogram. Wagyu breeds may thrive in both temperate and tropical climates.

Due to Australia's varied climatic conditions, several places are currently viable for Wagyu production. In South Australia, the south-eastern districts surrounding Adelaide can produce Wagyu and are now producing some. Given the limited supply of Wagyu, particularly from exporting nations such as the United States and Brazil, prices are anticipated to remain high. Huge prospects exist in Asia as Australia distinguishes its cattle business from quality products rather than raw quantities. Wagyu is a crucial industry, with cross-bred Wagyu fetching prices roughly 40 percent higher than Angus and full-blood Wagyu at 100 percent above Angus.

Segmental Analysis

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

Based on type, the wagyu beef market is segmented into cows and heifers, steers, and bulls.

Steers dominate the market and are expected to grow at a CAGR of 8.1% during the forecast period.

Based on breed types, the wagyu beef market is segmented into Japanese breed, Australian breed, and others.

Japanese Breeds dominate the market and is expected to grow at a CAGR of 8.5% during the forecast period.

Based on distribution channels, the wagyu beef 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 8.4% during the forecast period.