The Japan wagyu beef market size was valued at USD 2,017 million in 2021. It is projected to reach USD 4,108 million by 2030, growing at a CAGR of 8.4% 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.
An increase in Wagyu beef production can narrow the gap between supply and demand and boost consumption, driving the market throughout the projection period. The increased production results from many government programs promoting wagyu production. The Japanese government stated that the Beef Livestock Stabilization Program, commonly known as Marukin, will distribute support payments to Wagyu beef cow breeders. Under the initiative, the government would compensate wagyu cattle producers 90% of the monthly adjusted difference between production expenses and earnings. These measures increase Wagyu beef output and will drive the market during the projection period. about the advantages of wagyu beef over other types of meat and are, consequently, the natural market for premium wagyu beef.
Wagyu beef is approximately three times more expensive than other forms of cattle. The premium price deters price-sensitive consumers and can potentially hinder the market's growth during the predicted period. There are limited quantities of 100% full-blood wagyu accessible, especially in nations such as the United States. Due to the unique flavor profile, wagyu varieties such as Kobe beef are gaining global appeal. Several fine dining restaurants employ Kobe beef in their most luxurious meals. The high prices of Wagyu can be ascribed to the difficulty of producing wagyu cattle. Wagyu cattle have an innate marbling gene, a unique component of their DNA that facilitates the cultivation of Wagyu's renowned marbling. To activate this gene, Wagyu must be raised in an environment that minimizes stress to the greatest extent possible. Skilled wagyu ranchers provide individualized care for their livestock and execute measures that foster a favorable environment.
On the worldwide Wagyu beef market, the most recent fads are innovations and the use of technology. Several research efforts are currently undertaken on a global scale to create lab-grown meat utilizing cell culture technologies. JUST, a cell-cultured meat firm based in the United States, signed an agreement with Toriyama, one of Japan's leading beef producers, to develop cell-cultured Wagyu beef products. Toriyama specializes in raising cows that produce Wagyu beef cuts. Innovations are also evident in adequate meat tracking across the supply chain to assure consumers of the meat's quality and adherence to manufacturing and distribution standards.
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 8.6% 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 8.9% 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 8.9% during the forecast period.
Wagyu cattle in Japan comprise four Japanese breeds: Black, Brown, Shorthorn, and Polled. In recent years, the intramuscular fat percentage of Japanese Black beef (longissimus muscle) has climbed to over 30%. The Japanese Black is genetically prone to produce carcass lipids with higher monounsaturated fatty acid contents than other breeds.
In 2017, Japan raised 2.5 million cattle for beef production, around 1,600,000 Japanese Black cattle (Ministry of Agriculture, Forestry, and Fisheries), 21,000 Japanese Brown cattle, and 25,000 other Wagyu breeds. Additional 834,700 cattle of breeds other than Wagyu were utilized for beef production. (Holstein 313,000, F1 Wagyu-cross 521,600, and others 100). The number of beef cow farms in Japan is slowly diminishing. In 2017, 50,100 farmers produced beef, each growing an average of 50 cattle. 35.6% of cattle were raised on Kyushu (the largest island in the south) and 20% on Hokkaido (the main northern island). At 29.2 months of age, Japanese Black cattle's average body and carcass weights were 756 kg and 476 kg, respectively, while the average daily weight gain to slaughter was 0.77 kg. Recently, the average amount of intramuscular fat in the longissimus muscle of Japanese Black cattle has exceeded 30%. In 2017, the average market price for calves (9.1 months old) was 653,827 yen (about USD 6,226), while the average market price for beef carcasses was 1,313,697 yen. (around 12,511 USD). The average total manufacturing costs per carcass were 1,054,763 yen (around 10,045 USD).
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