NEW YORK, July 8, 2024 /PRNewswire/ -- The global wagyu beef market size is estimated to grow by USD 3.67 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.78% during the forecast period. Increasing production and trade of wagyu beef is driving market growth, with a trend towards increase in the preference for clean labeled wagyu beef. However, premium price of wagyu beef poses a challenge. Key market players include 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.

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

The Wagyu beef market is experiencing growth due to the increasing consumer preference for clean-labeled products. Country of origin significantly influences consumer purchase decisions, with Wagyu beef from the US and Canada perceived as safer and of better taste and freshness. However, country-of-origin labeling (COOL) adds costs for producers. The clean labeling trend, aimed at reducing fat, sugar, and salt, will further boost market growth during the forecast period.

Wagyu beef, known for its high-quality and premium status, is experiencing significant growth in farming, processing, packaging, marketing, retailing, and consumer appreciation. With rising disposable incomes and changing dietary preferences, health-conscious consumers seek out Wagyu's health benefits, including monounsaturated fats and omega-3 fatty acids. Producers like Morgan Brook Farm focus on stringent production standards for Fullblood Wagyu, Purebred Wagyu, and Crossbred Wagyu. Processors ensure strict adherence to food safety regulations and promote their products in the foodservice industry, gourmet cuisine, and high-end restaurants. Gourmet food retailers capitalize on the exclusivity and reputation for excellence of Wagyu beef, catering to health-conscious consumers and luxury hospitality sector. Brands like Agri Beef, Japanese Black, Japanese Brown, Japanese Polled, and Japanese Shorthorn differentiate themselves through intramuscular fat content and conjugated linoleic acid. Despite concerns over Bovine Spongiform Encephalopathy, Wagyu beef's profitability and popularity continue to rise, making it a lucrative investment for producers and retailers alike.

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

• The Wagyu beef market faces a significant challenge with its premium pricing, which is approximately three times higher than other types of beef. This high cost acts as a barrier for price-sensitive consumers and may impact market growth during the forecast period. The availability of 100% full-blood Wagyu, especially in countries like the US, is limited. Despite this, Wagyu beef's unique taste profile, particularly Kobe beef, is gaining popularity in fine dining restaurants worldwide. For instance, the world's most expensive taco at Grand Velas Los Cabos, Mexico, costs USD25,000 and features Kobe beef, langoustine, Almas Beluga caviar, and black truffle brie cheese. Wagyu's premium pricing can be attributed to the intricate cattle-raising processes. Wagyu cattle possess an inherent marbling gene, which is activated when they are raised in a stress-free environment. Skilled ranchers provide individual care and implement practices to create a favorable environment for the cattle.
• The Wagyu beef market faces several challenges for suppliers like Morgan Brook Farm, offering Fullblood, Purebred, and Crossbred Wagyu. Bovine Spongiform Encephalopathy (BSE) is a concern, with strict regulations for Japanese Black, Brown, Polled, Shorthorn, and other Japanese cattle breeds. Intramuscular fat and Conjugated Linoleic Acid (CLA) contribute to Wagyu's premium value, targeting Foodservice, B2B clients, and the Luxury Hospitality Sector. Premiumization, driven by marbling, tenderness, gourmet dining, and culinary experiences, upscales restaurants' demand. Expert analysis, genetic predisposition, dietary goals, and health-conscious individuals seek quality and consistency. Limited supply, especially in Queensland, requires strategic decisions and accessibility through e-commerce websites. Certification programs ensure excellence, while genetic enhancement technologies and celebrity endorsements boost market visibility. Intelligence services segment the market, enabling informed business decisions.

For more insights on driver and challenges - Download a Sample Report

Segment Overview

This wagyu beef market report extensively covers market segmentation by

1. Distribution Channel
   • 1.1 Offline
   • 1.2 Online
2. Product
   • 2.1 Japanese breed
   • 2.2 Australian breed
   • 2.3 Others
3. Geography
   • 3.1 APAC
   • 3.2 North America
   • 3.3 Europe
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Offline- The wagyu beef market's offline distribution channel includes supermarkets, hypermarkets, specialty stores, hard discount stores, and convenience stores. Major retailers like Tesco, Walmart, and Target have dedicated sections for wagyu beef in their stores, utilizing promotional strategies such as signages and discounts. Specialty stores, focusing on specific product categories, accounted for significant wagyu beef sales in 2023. Hard discount stores and convenience stores had marginal sales due to their focus on private-label brands and lower prices. Despite challenges posed by the COVID-19 pandemic in 2020, the offline distribution segment is projected to grow as vendors strengthen partnerships with retailers. Vendors invest in brick-and-mortar stores to expand their market share. Consumers prefer specialty retailers for wagyu beef due to the wide variety and dedicated focus on the product. The global retail sector's growth contributes to the popularity of retail outlets. Despite challenges, the offline distribution channel is expected to recover and grow during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022) - Download a Sample Report

Research Analysis

Wagyu beef, renowned for its rich marbling, tenderness, and distinctive flavor, is a premium culinary experience sought after by foodservice providers, luxury hospitality sector, and gourmet dining establishments worldwide. The Wagyu breed includes Fullblood Wagyu, Purebred Wagyu, and Crossbred Wagyu, with Japanese Black, Japanese Brown, Japanese Polled, and Japanese Shorthorn being popular sub-breeds. The intramuscular fat content and conjugated linoleic acid (CLA) in Wagyu beef contribute to its health benefits, making it a favorite among health-conscious individuals and those with dietary goals. Premiumization in the meat industry drives the demand for Wagyu beef, with B2B clients and e-commerce websites offering expert analysis and genetic enhancement technologies to ensure quality and consistency. Despite concerns over Bovine Spongiform Encephalopathy (BSE), or "Mad Cow Disease," proper handling and strict regulations ensure the safety of Wagyu beef.

Market Research Overview

Wagyu beef, a premium and highly sought-after culinary experience, is renowned for its intramuscular fat, marbling, tenderness, and rich flavors. This Japanese cattle breed, including Fullblood Wagyu, Purebred Wagyu, and Crossbred Wagyu, is gaining popularity in the foodservice industry and among health-conscious individuals. The Luxury Hospitality Sector, B2B clients, and upscale restaurants are embracing Wagyu beef for its premiumization and exclusivity. The market for Wagyu beef is segmented into various Japanese cattle breeds, such as Japanese Black, Japanese Brown, Japanese Polled, and Japanese Shorthorn. The limited supply, coupled with expert analysis and celebrity endorsements, adds to its allure. Genetic predisposition, dietary goals, and genetic enhancement technologies contribute to the high-quality and consistency of Wagyu beef. Major players in the Wagyu beef market include Morgan Brook Farm, Agri Beef, and others. These companies focus on breeding, farming, processing, packaging, marketing, retailing, and consumer appreciation. The rising disposable incomes and changing dietary preferences are driving the demand for high-quality, premium beef products. The health benefits of Wagyu beef, including monounsaturated fats, omega-3 fatty acids, and conjugated linoleic acid, further add to its appeal. E-commerce websites and gourmet food retailers are also promoting Wagyu beef to reach a wider audience. The Queensland certification program ensures the excellence and authenticity of Wagyu beef. The market for Wagyu beef is expected to continue growing due to its reputation for excellence, accessibility, and profitability. Strict production standards and intelligence services ensure the quality and consistency of this premium product.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• • Offline
  • Online
• Product
• • Japanese Breed
  • Australian Breed
  • Others
• Geography
• • APAC
  • North America
  • Europe
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/wagyu-beef-market-size-is-set-to-grow-by-usd-3-67-billion-from-2024-2028--increasing-production-and-trade-of-wagyu-beef-to-boost-the-market-growth-technavio-302189635.html

SOURCE Technavio