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The Wagyu Beef Market size is projected to increase by USD 3,598.98 million and the market size is estimated to grow at a CAGR of 7.04% between 2022 and 2027.
The market is experiencing significant growth due to the increasing production and trade. Japan holds the leading position as the largest exporter since 2020, closely followed by Australia. The rising stock of this beef in Japan is expected to drive growth in the global market during the forecast period, as it helps meet the growing demand for this premium meat. Governments' initiatives to promote the production, such as Japan's support payments to these cattle producers under the Japan Beef Livestock Stabilisation Programme (Marukin), have led to increased production, further propelling the market growth in the forecast period. It also includes an in-depth analysis of drivers, trends, and challenges.
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The Cell-cultured beef and enhanced traceability measures are driving trends in the market. Researchers worldwide are innovating with cell culture technology to develop meat, while unique identification numbers on beef products offer consumers detailed information about the cattle's origin. This increased traceability reduces counterfeit products and boosts consumer confidence, leading to market growth in the forecast period.
The high premium price is a significant challenge for the market. With costs about three times higher than other meats, price-sensitive consumers may be discouraged. However, the exclusive taste profile of the beef, especially Kobe beef, is gaining popularity in fine dining restaurants worldwide. The premium prices are attributed to the meticulous cattle-raising processes required for the unique marbling gene in wagyu. Skilled ranchers create a stress-free environment for cattle, which further drives up prices. Additionally, the ban on Chinese rice straw imports in Japan due to the African swine fever outbreak is expected to increase the prices further.
Based on product, the largest segment in the market is the Japanese breed. Japan has actively promoted consumption through various initiatives, driving its popularity worldwide. The fine dining industry, including Michelin Star restaurants, is a key consumer of premium Japanese beef like Kobe beef. This contributes to the segment's growth during the forecast period.
On the other hand, Australian beef is mainly exported globally. Ban on Japanese meat imports by countries like China, following disease outbreaks in Japan, has led to increased consumption of Australian wagyu. Over 60% of Australia's beef exports are sent to markets in Asia, China, Europe, and the Middle East since 2020, with Australia's Wagyu Association being the largest breed association outside Japan.
The market share growth by the offline segment will be significant during the forecast period. Offline distribution is characterized by supermarkets, hypermarkets, specialty shops, major discounters, and convenience stores. On the product packages in their shops, retailers are using promotional and marketing strategies including branding with signs or discounts. Growth in the global retail sector can be attributed to the popularity of retail outlets.
The Offline segment was valued at USD 6,612.55 million in 2017 and continued to grow until 2021.
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Consumers are attracted to the large discount offers of supermarkets and hypermarkets, as well as their use of appealing cabinets for showing different types of meat. In 2021 and 2022, the increased vaccination rate across the world led to the lifting of social distancing restrictions which, in turn, led to the restoration of the supply chain through offline channels. Hence, the market is expected to witness growth during the forecast period.
APAC is estimated to contribute 74% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The regional market in APAC is primarily driven by the high consumption in countries such as Japan. In addition, the high volume trade is a key driver for the regional market. In APAC, Japan and Australia are the leading producers and exporters. The major importers are Hong Kong, Taiwan, and Singapore.
Moreover, the market in APAC faces various challenges, including the ban on beef imported from Japan. China is one of the largest meat-consuming countries, and the ban on the import is impacting market growth in APAC. Moreover, In recent years, India's political campaign against meat consumption has put the growth of markets in APAC at risk during this forecast period. A major growth factor for the markets in the Asia Pacific is the growing food service sector. Wagyu beef products are being offered in several new restaurants, which can lead to higher consumption of meat. The market is expected to grow during the forecast period driven by an increasing food service sector.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is thriving due to the increasing demand for premium-quality meat and the health benefits associated with it. Wagyu beef is known for its marbling and tenderness, making it a popular choice among consumers seeking premiumization in their meat choices.
The market is witnessing a trend towards new flavors and product introductions, catering to evolving consumer preferences. Brand loyalty is also a significant factor driving the market, with consumers willing to pay a premium for the quality and taste of Wagyu beef. The rise of e-commerce websites has further boosted the market, with a significant portion of sales now happening through online channels. As consumer awareness and demand continue to grow, the Wagyu beef market is expected to expand further in the coming years.
Wagyu Beef Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.04% |
Market growth 2023-2027 |
USD 3598.98 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
6.45 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 74% |
Key countries |
US, Japan, Hong Kong, Australia, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agri Beef Co., Australian Agricultural Co Ltd, Black Hawk Farms, Blackmore Wagyu, Chicago Steak Co., DEBRAGGA Inc., Dolan Foods Inc., GRAND WESTERN, Havel Wagyu GbR, Holy Grail Steak Co., Japan PREMIUM BEEF Inc., JBS SA, Lone Mountain Wagyu LLC, Masami Cattle Ranch Inc., Morgan Ranch Inc., Starzen Co. Ltd., Stockyard Pty Ltd, Sugar Mountain, WAGYU MASTER Europe GmbH, and Wagyu World |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market analysis and report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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