Beef Market Outlook

The global beef market broadly analyses vital segments, drivers, restraints, and the competitive landscape. The report also studies beef market trends and other essential market aspects.

The global beef market reached a value of about 54.5 million metric tons in 2021. The industry is projected to grow at a CAGR of around 3.1% in the forecast period of 2022-2027 to reach a value of about 63.5 million tonnes by 2027.

The beef market price in 2021-2022 are expected to be impacted as beef prices have increased considerably due to robust domestic and international demand, shortages of labour, various restrictions, disruptions in the supply chain, and high production management and feed costs. According to the research, the critical beef market demand indicator in the industry report is the highest category spender by region that is the United States.

Industry Definition and Segmentation

In cuisine, beef is the term used to describe cattle meat. Cattle of different breeds are grown in various regions of the world to provide meat of a particular grade and quantity. Premature ageing of some species produces high-quality meat. These beef cuts are tender, lean, and vibrantly coloured. It can be employed in home cooking for hamburgers, steaks, roasts, and packed meat.

The beef market value in 2020 was driven mainly by the increased demand for beef flank, shank, chuck, round, and ribs. Moreover, owing to its less fat and calorie content, grass-fed brisket is in great demand. The beef business research includes application categories for the food industry and packaged meat. In 2020, beef ranked third in the world's meat consumption, with 70.9 million tonnes eaten. Major beef-producing nations include Brazil, India, Australia, the United States, and New Zealand.

The United States, Brazil, and European Union Regions are Driving the Growth of the Industry

In 2020, the world's biggest beef producer was the United States, followed by Brazil and the European Union. All three regions accounted for approximately 50% of its total production globally. The United States alone produced 12,379 metric tonnes of beef in 2020, which is 20% of the whole meat produced worldwide.

The beef market in Brazil, Australia, the United States, India, Argentina, New Zealand, and Canada exported one billion pounds of beef in 2020, with Brazil exporting around 24% of its global demand. Additionally, the United States was the most critical beef market worldwide in 2020, along with China, the European Union, Brazil, and India.

As per the beef market forecast the demand will increase at a higher rate as the global population is predicted to surpass 9 billion by 2050. This indicates that a considerable amount of land, water, and energy would be required for cattle grazing, and the entire process would create a substantial amount of waste.

Hence, it is essential to develop its sustainability at a global level. World Vast Fund for nature is working with beef producers, various companies, and their supply chains to help improve the sustainability of its manufacturing. To add further, while leaders in the beef market are facing challenges related to beef meat storage, the demand for cured and non-cured beef products has seen immense growth over the years.

Category Management Studies

The first stage of the beef slaughter method is with a cow-calf manufacturer, who manages a rearing herd of cows that gives birth to calves annually. Its industries need high on-farm efficacy and productivity to maintain sustainability factors and cost-effective value-chains that would help gain the target-market specifications. The vast beef production practices generally consist of pasture-based cow-calf and stocker-backgrounding or grow-out methods and pasture or feedlot finishing.

In the pasture-based systems, cattle production is subjected to extreme levels of environmental deviation. Only a few specific types of genotypes are well suited to this type of variation. Beef production techniques that utilise cattle and beef breeds need to focus on suitable genotypes and superior yield compared to maintenance for the rearing herd and raising and finishing cattle. This process augments the income and reduces costs, specifically feed costs which may go up to 60% or more of production expenses, enhancing the market outlook.

Also, the New-age technologies and digitalisation facilitate swift capture and use of environmental and cattle performance data, even though the systems are massive, improving productivity, competence, sustainability, and animal wellbeing.

High Protein and Low-Fat Consistency in the Meat, Further Driving beef Procurement

Due to its high protein and low-fat content, beef meat is included in the diet as a healthy substitute. Nowadays, more and more people with higher disposable incomes and improved living standards are helping the beef market grow at a higher speed. This growing awareness of the benefits of consuming meat products (lean protein) is projected to provide several opportunities to various meat processing vendors and food companies to put their money into the industry, propelling the beef market demand.

The global beef industry can be divided into the following regional markets - United States, Brazil, and European Union.

Beef Market Key Players

• Cargill
• Tyson Foods
• JBS
• National Beef
• Marfrig
• Seaboard

Market Landscape

Along with developed nations like the United States, beef cow consumption in several developing regions such as Asia Pacific, Latin America, the Middle East and Africa has grown over the past few decades. The worldwide distribution channels of beef significantly influence the total pricing of red meat and its related commodities. Likewise, the industrialisation of the food industry in many regions globally has shifted mechanisms in recent years; beef production saw sizeable market growth across the globe.

Key Initiatives by Companies

• In August 2021, Cargill company launched a cross-industry partnership to speed-up dairy-beef crossbreeding techniques. Cargill clubbed with partners from various industries, including Nestle, to ascertain the Dairy Beef Accelerator. The three-year program will help to fasten the learning and adoption of crossbreeding methods with the beef producers, emphasising the exceptional opportunities that 'beef on dairy' can resolve.
• In September 2020, Walmart Foundation, Cargill, and McDonald's invested over USD six million in an initiative headed by the World Wildlife Fund, which aims at making an increasing number of long-term improvements to the grasslands of Northern Great Plains. This collaboration would promote sustainable results and encourage ranchers in the beef supply chain.