Beef Market is Expected to Witness only Modest Growth until 2030

Beef Market Outlook

The global beef market is forecast to reach 72.7M tons by 2030, growing at a CAGR of 0.8% during the period 2022-2030. The global beef market is a multi-billion dollar industry that has historically been characterized by brisk growth, strong demand, and reliable supply. Despite the emergence of new trends in the food industry such as vegetarianism and veganism, beef still remains one of the most popular sources of protein worldwide.

The demand for beef is expected to continue to rise in both developed and developing countries, driven by population growth and income growth. As populations grow and economies develop, people tend to consume more meat, including beef. In addition, changing dietary preferences are also playing a role in boosting beef consumption around the world. For example, as incomes rise, people are more likely to eat out at restaurants and purchase higher-quality cuts of beef.

The market is expected to be driven by the growing demand for beef in Asia-Pacific, South America, and Africa. In addition, the increasing number of working women and the changing dietary habits of consumers in these regions are expected to boost the growth of the beef market. The Asia-Pacific region is projected to be the fastest-growing market for beef, with a CAGR of 1.5% during the forecast period. The growing population and economic development in countries such as China and ASEAN countries are expected to drive the demand for beef in this region. In addition, rising disposable incomes are expected to contribute to the growth of the Asia-Pacific beef market.

The North American beef market is expected to witness moderate growth during 2022-2030. The United States is one of the largest producers as well as consumers of beef in this region. However, Canada is projected to be the fastest-growing country in North America, with a CAGR of 1.0% during 2022-2030. The growing popularity of premium beef products and changing consumer preferences are expected to drive the growth of this market in Canada.

The European Union is one of the major markets for beef owing to the presence of a large number of cattle farms in this region. However, the EU beef market is projected to grow at only a modest CAGR of 0.3% during 2022-2030.

The major players operating in the global beef market include JBS S.A., Tyson Foods Inc., Cargill Inc., NH Foods Ltd., Marfrig Global Foods S.A., Vion Food Group, BRF S.A., Hormel Foods Corporation, National Beef Packing Company LLC.

Beef Market Challenges

The global beef market is facing a number of challenges in the coming years. These include:

1) Increasing production costs.

Inflation has been a major concern for the beef market in recent years. High inflation rates have led to higher prices for beef, making it more expensive for consumers. This has had a negative impact on demand, as consumers have been forced to cut back on their consumption of beef.

In addition, high inflation has also made it difficult for farmers to produce beef, as they have to cope with the rising costs of feed and other inputs.

The cost of beef production has been on the rise in recent years due to a variety of factors. The price of feed, fuel and other inputs have all increased, while the price that farmers receive for their beef has remained relatively static. This has led to a squeeze in profit margins, and many farmers have been forced to leave the industry. Moreover, the supply of beef has tightened, leading to even higher prices.

The increase in production costs has also been exacerbated by drought conditions in many parts of the country. Farmers have had to purchase hay and other feed at high prices or face the possibility of their cattle starving. The situation has led to calls from some quarters for the government to intervene and help support the beef industry. However, others argue that such intervention would be counterproductive and would simply prop up an industry that is not economically viable in the long term. Whatever the eventual outcome, it is clear that the increasing cost of beef production is a major challenge for the industry and one that is unlikely to be resolved quickly or easily.

2) Changing consumer preferences.

The beef market is changing. Consumer preferences are shifting, and producers need to take notice. In the past, the majority of consumers preferred leaner beef. However, that is no longer the case. Today, consumers are looking for beef that is juicy and flavorful. They are willing to pay more for beef that meets their expectations in terms of taste and quality. This shift in consumer preference has been driven by a number of factors, including the growing popularity of steakhouse dining and the influence of celebrity chefs. As a result, producers must change the way they breed, feed, and finish their cattle to meet these new demands. By doing so, they can ensure that they remain competitive in the ever-changing beef market.

3) Competition from other proteins.

As the world population continues to grow, the demand for protein is also on the rise. This has led to an increase in the popularity of alternative proteins, such as soy, pea, and insect-based proteins. This is putting pressure on the beef market, as these alternatives are often cheaper and more sustainable than beef. There are a number of reasons why people are choosing alternative proteins over beef. For one, they tend to be more health-conscious and are aware of the potential health risks associated with consuming red meat. Additionally, many believe that alternative proteins are more environmentally-friendly than beef. Finally, some simply prefer the taste of alternative protein sources to that of beef.

The beef industry is responding to this challenge by working to improve the sustainability of its own operations. For example, many beef producers are now using rotational grazing systems that are more efficient and help to improve soil health. In addition, some companies are exploring ways to use byproducts of the beef industry, such as leather and tallow, in order to create new products that have a lower environmental impact.

Join Us at HANNOVER MESSE 2024

Don’t miss your chance to connect with us directly. Schedule a personal meeting to dive deeper into how solutions.
Hall 002, Stand C10. 22 - 26 April 2024 | Hannover, Germany

Book Your Meeting

Energy Crisis Impact on the Beef Market

The business sector has been affected by the global energy crisis in a number of ways. Firstly, the cost of energy has increased significantly, which has led to higher costs for businesses that use energy intensively. This has put pressure on profit margins and has forced some businesses to pass on these higher costs to consumers in the form of higher prices. Secondly, the availability of energy has become more uncertain, which has made it difficult for businesses to plan and invest for the future. This has led to lower levels of investment and growth, and has resulted in job losses in some sectors. Finally, the global energy crisis has had an impact on international trade, as the cost of shipping goods around the world has increased. This has made it difficult for businesses to compete in global markets and has resulted in a decline in exports from countries that are reliant on energy-intensive industries.

The global energy crisis is having a major impact on the beef market. With oil prices at record highs, transportation costs have skyrocketed, making it very difficult for beef producers to get their product to market. In addition, the high cost of feed grains has made it difficult for many ranchers to keep their herds fed. As a result, the supply of beef on the international market has tightened, driving up prices.

The impact of the energy crisis is being felt most acutely in developing countries, where the majority of the world's beef is consumed. In Brazil, for example, beef prices have increased by nearly 50% over the past year. This has led to widespread protests and riots, as people struggle to afford basic necessities like food. The situation is similar in other parts of Latin America and Africa, where the energy crisis is exacerbating poverty and hunger. In developed countries like the United States, higher beef prices are also starting to cause problems. American consumers are cutting back on their beef consumption, and some restaurants are even starting to substitute chicken or pork for beef in their dishes. The U.S. government is also considering imposing tariffs on imported beef in order to protect domestic producers.

Source: IndexBox Market Intelligence Platform