The North American wagyu beef market was valued at USD 2,812 million in 2021. It is projected to reach USD 4,237 million by 2030, growing at a CAGR of 4.8% during the forecast period (2022-2030).
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.
In North America, Wagyu beef's growth is driven by the expanding importance of foods with high nutritional content and the rising demand for luxury foods. In recent years, beef consumption in the region has increased due to an improved supply system and a burgeoning meat industry.
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. Additionally, 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 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 wagyu industry.
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. 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.
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.
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 4.5% 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 are expected to grow at a CAGR of 5.5% 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 5.3% during the forecast period.
North America stands at the second place globally and is expected to grow at a CAGR of 4.8% 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 wagyu beef 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.
The North American Meat Institute reported that in 2018, American meat companies produced around 26.8 billion pounds of beef, a 7.2% increase over 2014. Due to increased domestic demand, there are about 40,000 pounds of Wagyu beef in the United States. The nation imports a substantial quantity of the species from South America. The Wagyu beef market in the United States is expanding by 20%, and the number of animals with 100% pure blood is increasing.
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