M. Shahbandeh
Research expert covering agriculture & FMCG
Grass-fed beef is a popular type of meat that involves feeding cattle a diet of mostly grass. It has gained popularity because many consumers believe that it is healthier than commodity beef. Grass-fed beef is often lower in fat and does not contain growth hormones commonly used in other beef production. The global market value of grass-fed beef amounted to approximately 12.4 billion U.S. dollars in 2023 and is expected to increase to about 20.4 billion U.S. dollars by 2033. In addition to the potential health benefits, it is also viewed as more ethical and sustainable, making it a more popular choice for conscious consumers.
U.S. market
Sales of grass-fed beef decreased by a little less than one percent in 2021 compared to the previous year. Higher costs could be a cause for lower sales. For example, as of June 2023, different cuts of grass-fed beef cost anywhere from about ten to 59 U.S. dollars per pound, with filet mignon being the priciest cut for U.S. consumers. On the wholesale side, tenderloin and New York steaks are the most expensive cuts. The wholesale price of one pound of grass-fed tenderloin cost about 50 U.S. dollars in 2023.Consumer behavior
Across Europe, consumers are interested in higher quality meats. In Italy, about 64 percent of consumers expressed interest in grass-fed steaks in 2023. About 40 percent of consumers were interested in grass-fed mince in several other countries. Italy also boasts the highest share of consumers familiar with this type of beef, reaching about half. In the U.S., it is among the top consumer preferences when buying meat in the U.S., but falls behind other preferences such as locally raised, hormone free, and free range. As of 2022, about 27 percent of U.S. consumers care if the beef they purchase is grass-fed.
