Beef Demand Stays Strong Despite Record High Retail Prices

By Scout Nelson

When most products reach record-high prices, demand usually falls. Yet beef is proving to be an exception. Despite sharp increases in retail prices, demand for beef remains strong across the United States.

According to USDA data, the all-fresh retail beef demand index hit its highest level in at least 25 years during the second quarter. CoBank’s Knowledge Exchange suggests several factors are driving this trend, including consumer interest in dietary protein, changing health perceptions about beef, and the wide availability of restaurant-quality cuts at grocery stores.

“Twelve months ago, the question was whether beef demand would hold up at higher prices, but today most analysts are fairly certain that beef value risk is to the upside,” said Brian Earnest, lead animal protein economist with CoBank.

Per capita beef consumption in the U.S. is expected to reach 60 pounds this year. Earnest noted, “U.S. consumers can’t seem to get enough protein these days and among animal proteins, beef remains king.”

On the supply side, cattle numbers are at historic lows. The USDA cattle inventory report, released July 25, showed the national herd at 94.2 million head—a 75-year low and the smallest midyear count on record.

With most analysts predicting tight supplies through at least 2026, and possibly into 2027, beef prices are expected to remain elevated. This combination of strong consumer demand and limited cattle supply underscores the resilience of beef in the U.S. food market.

Beef continues to maintain its position as a staple in American diets, driven by consumer preferences, health trends, and enduring popularity despite rising costs.

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