A Japanese beef cow breed altered from Asian cattle is known as wagyu. It differs from other forms of beef in specific ways that make it more delicate and flavorful. Due to several benefits, including premium red meat that is high in protein, improved health, and advantages in the fight against disease, the worldwide Wagyu beef market is growing quickly. Furthermore, a growing client base looking for healthier meat options is probably what will fuel the global Wagyu beef business. The hospitality and food service sectors have had to alter their menus in response to the rising demand for wholesome, high-quality meals. Additionally, businesses looking to increase their profits are spending money on marketing initiatives, assisting in developing a platform for the wagyu beef industry.
During the epidemic, Japan, one of the biggest supplier of Wagyu meat, suffered greatly. Manufacturers made large quantities of goods, particularly for the expected tourists during the Summer Olympics tournament. The producers kept massive amounts of this meat in their storage facilities when the Olympics were postponed due to the pandemic. They could not export their goods abroad, which affected the worldwide supply chain. The governments imposed stringent restrictions on public gatherings to stop the spread of the disease during the early stages of the pandemic. They issued orders ordering the closure of public spaces. Therefore, public spaces like hotels and restaurants were closed during the pandemic. Sales through these channels were greatly hindered by the limitations put in place by the governments of various nations, and they declined during the pandemic's initial phase.
Health-Conscious Consumers' Rising Demand for Animal Protein will Drive Market Expansion
Globally accelerated urbanization and a rise in the number of workers entering the formal economy are important drivers of the population's increase in disposable income. Additionally, animal protein consumption patterns have changed due to consumer dietary trends in several nations, including Indonesia and China. As a result, the demand for beef products is rising quickly in these markets. The overall increase in protein consumption has positively impacted the demand for premium beef cuts worldwide. Many consumers are eager to spend their money on goods that are good for their health. As a result, consumers are also demanding more expensive goods.
Strict Wagyu Cattle Breeding Regulations will Restrain Market Expansion
Producing Wagyu cattle is more expensive and difficult than raising regular cattle. In each region, farmers raise various breeds in distinctive methods. The time and feed needed to raise breeding cattle are significantly greater than those needed to raise regular cattle. Because of this, raising Wagyu cattle is expensive for farmers. Compared to Wagyu cattle, the highly popular black Angus breed matures swiftly. Wagyu cattle also require a low-stress setting to maintain the quality of their steak. The suppleness and quality of the meat are negatively impacted by excessive stress on the cow. Therefore, raising such animals in a stressful environment is not possible.
Based on nature, the wagyu beef market is segmented into organic and conventional. The organic category dominated the market in 2021. Organic beef has higher levels of antioxidants than conventional beef, including 34% more Q10, 72% more taurine, and 53% more beta-carotene, according to a recent study published in the Journal of the Science of Food and Agriculture. Additionally, organic beef displayed a more well-balanced lipid (fat) profile, with 17% less cholesterol, 32% less fat, 16% fewer fatty acids, and 24% fewer monounsaturated fatty acids. The heart-healthy linolenic acid in organic meat was 170% higher than in conventional beef, which proved to be a particularly beneficial factor.
By Product Type
By product type, the market is segmented into Japanese breed, Australian breed, cross breed, and others. The Japanese breed category dominated the market in 2021. Japanese beef cattle are bred for wagyu. The term "Japanese Cow" (Wagyu) refers to these animals, whose flesh is known as Kobe Beef. It is regarded as one of the finest meats and is offered in many steakhouses and restaurants worldwide. These cattle are raised using exact, time-honored practices handed down through the centuries. As a result, Japanese beef has a distinct flavor and texture that both cooks and foodies adore. Besides, the crossbreed category is anticipated to grow significantly over the forecast period. Breeding two distinct breeds of cattle together are known as crossbreeding. The offspring that results is referred described as "crossbred." Crossbreeding can be done for various reasons, including producing beef with more fat or calves that are more disease-resistant.
By Distribution Channel
By distribution channel, the market is segmented into direct to online and retail. The online category dominated the market in 2021. Customers are actively participating in online shopping and spending more time online. Online retailers are becoming increasingly well-liked among clients because of their speedy delivery options and wide range of affordable products. As internet usage has increased, particularly in developed North America and Europe, players have been encouraged to increase their online presence. Big companies are working with other well-known e-commerce sites to enhance their online presence.
North America is projected to hold the largest share of the wagyu beef market over the forecast period. This results from upper-class and middle-class families in North America consuming and adopting Wagyu beef products at a growing rate. The regional market is primarily driven by technological advancements, astute marketing, and growing consumer awareness of the advantages of consuming Wagyu beef. Wagyu beef is widely consumed in North America, especially in the United States, which supports the market's overall growth. The industry is growing in North America thanks to the presence of well-known manufacturers and exporters of Wagyu beef products.
On the other hand, the European wagyu beef market is anticipated to grow significantly over the forecast period. The European Wagyu beef market is driven by significant market players in the area and effective marketing strategies utilized by producers and importers to draw consumers. Some main factors causing an increase in demand in Europe are rapidly changing lifestyle patterns, adopting the Western culture and eating customs, and growing consumer awareness of Wagyu beef. Furthermore, the European Wagyu beef market is likely to grow even more due to producers controlling the competitive edge through effective strategies and the market's expanding competitive edge.
LIST OF KEY COMPANIES PROFILED:
- Black Hawk Farms (U.S.)
- Australian Agricultural Company Limited (Australia)
- Starzen Co., Ltd. (Japan)
- Imperial Wagyu Beef (U.S.)
- Toriyama Umami Wagyu (Japan)
- Mishima Reserve (U.S.)
- Snake River Farms (U.S.)
- Blackmore Wagyu (U.S.)
- Lone Mountain Cattle Company (U.S.)
- K.C. Cattle Company (U.S.)
- Nebraska Star Beef (U.S.)
- Middle East Fuji L.L.C. (U.A.E.)
- Tajimaya UK ltd. (U.K.)
- Holy Grail Steak Co. (U.S.)
- DeBragga and Spitler (U.S.)
- Chicago Steak Company (U.S.)
- Creek Bed Country Farmacy, L.L.C. (U.S.)
- The Butcher's Market (U.S.)
- West Coast Prime Meat (U.S.)
KEY INDUSTRY DEVELOPMENTS:
- June 2022: Matilda 159 Domain, a restaurant in the United States, has added a limited-time Wagyu item to its menu called Blackmore Wagyu tomahawk steak. This limited-time offer helped to generate positive word of mouth among consumers and pique people's interest in trying these items.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Nature, By Product Type, By Application, By Distribution Channel and By Geography|
|By Product Type||
|By Distribution Channel||