Middle East and Africa Wagyu Beef Market

Market Overview

The Middle East and Africa wagyu beef market size was valued at USD 867 million in 2021. It is projected to reach USD 1,353 million by 2030, growing at a CAGR of 3.9% 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. 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.

The Middle East's manufacturing and distribution centers are expanding as its economy grows. The growth of the Middle East wagyu beef industry is anticipated to be fueled by the rising consumer desire for modernization, the rapid adoption of western eating habits, and the rise in disposable income across the region.

Market Dynamics

The Middle East and Africa Wagyu Beef Market Drivers

Rising Demand for Animal Protein

Changes in consumer dietary preferences increased animal protein intake in several countries, increasing the demand for beef products. The rise in protein consumption has had a favorable effect on the growth in demand for premium beef cuts. It is well-known for its health benefits, flavor, and aesthetic attributes. It is healthier than regular beef products, making it suitable for people concerned with their health. Due to high levels of omega-3 and omega-6 fatty acids, Japanese beef has a low LDL content. This also makes it appealing to consumers who seek healthful and tasty meat. As a result, despite its premium price, customer demand for this product has steadily increased, driving the expansion of the Wagyu beef market.

The Middle East and Africa 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. One of the critical challenges constraining the 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 Middle East and Africa Wagyu Beef Market Opportunities

Expanding Consumer Awareness

The market for wagyu beef is witnessing a transition regarding the need for value-to-premium products. A sizeable section of the Muslim population dwells in the Middle East and Africa and is the world's largest beef consumer. Consequently, producers benefit from expanding consumer awareness by employing various marketing tactics in this location. Demand for new flavors, product introductions, and items is a revolution. Market preferences rapidly shift towards healthier, tastier, and more suitable products. Despite the high cost of products, consumers who desire more sustainable and high-quality items are willing to raise the bar. Growing demand for modernization from the consumer side, rapid adoption of western eating habits, and increasing disposable income across the Middle East are the factors expected to escalate the growth of the Middle East wagyu beef market.

Regional Analysis

The Middle East and Africa wagyu beef market is anticipated to expand at a CAGR of 3.9% during the forecast period. A sizeable section of the Muslim population dwells in the Middle East and Africa and is the world's largest beef consumer. Consequently, producers benefit from expanding consumer awareness by employing various marketing tactics in this location. Moreover, the consumer desires flavorful, typically juicy and soft flavors when consuming protein. This constant flavor may be utilized in various dishes, including burgers, and acquiring them is simple and convenient. Therefore, the demand for this beef is expanding in markets like the United Arab Emirates and Saudi Arabia, where beef has long been considered a staple protein.

The expansion of the fast food and hotel industries is further altering the diets of the young and wealthy, leading to an increase in the consumption and expenditure of high-quality beef. Growing demand for modernization from the consumer side, rapid adoption of western eating habits, and increasing disposable income across the Middle East are the factors expected to escalate the growth of the Middle East wagyu beef market.

Due to a shallow understanding of the health advantages of wagyu beef and its products, Africa holds a disproportionately small portion of the worldwide wagyu beef industry. In addition, Africa is plagued by sluggish economic growth and a meager per capita income. Consequently, the region's low consumption of wagyu beef products hinders the overall growth rate.

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 4.1% 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 4.4% during the forecast period.

Based on distribution channel, 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 4.3% during the forecast period.