The United States wagyu beef market size was valued at USD 2,508 million in 2021. It is projected to reach USD 3,775 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.
The American Wagyu Association promotes and maintains the standards for Wagyu beef, the highest quality beef available in the United States. These cattle provide the world's finest beef due to their highly appreciated flavor. The market is driven by expanding public knowledge of the product and rising consumer readiness to pay a premium price for heavily marbled, high-quality meat in the United States.
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. The customers of a luxury hotel or a high-end fine dining establishment are well-informed about the advantages of wagyu beef over other types of meat and are, consequently, the natural market for premium 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 market, which has boosted demand for premium wagyu beef, is the most critical element driving the growth of the wagyu beef 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. 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.
Online sales are a prevalent method of advertising and selling items. Targeting a specific audience is one of the most effective elements of online sales and e-commerce websites, which all participants in the wagyu beef market have implemented. The market for wagyu beef is propelled by the presence of a large audience on a single platform. People are increasingly ordering wagyu beef and other products via e-commerce and internet platforms, driving growth in the wagyu beef business.
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 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 is expected to grow at a CAGR of 5.6% 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.
The United States wagyu beef market is anticipated to expand at a CAGR of 4.8% during the forecast period. In 2020, the United States was the third largest export market for Japanese beef, a rise of one position from the previous year. The sales increase was partially attributable to the rise in at-home consumption. The shutdown of numerous restaurants and other events caused by the COVID-19 outbreak has pushed Americans to eat at home more frequently. Wagyu, widely recognized as a luxury product, has attracted U.S. consumers desiring to prepare delicious meals at home. E-commerce accounted for 50 to 60 percent of JA Zen-Noh's wagyu sales in the United States, including those to wholesalers, hotels, and supermarkets, in 2020, a significant increase from 10 percent in 2019. The considerable growth in online sales compensated for declining sales to restaurants and other clients.
The market is driven by expanding public knowledge of the product and rising consumer readiness to pay a premium price for heavily marbled, high-quality meat in the United States. Recent research undertaken by the company Blackmore Beef Wagyu revealed that consumers desire highly marbled graded items; consequently, the significance of these products has expanded dramatically over the past few years. Increasing awareness regarding the consumption of these products and their associated health advantages are projected to be the primary growth drivers of the market.
Certain companies are embracing more stringent regulatory criteria to enhance the manufacture of such goods and remain competitive with regional rivals. For example, the U.S.-based Vermont Wagyu enterprise has stricter requirements and greater quality than most domestic beef breeding operations.
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