US shoppers still choose premium beef even as prices climb
When prices jump, shoppers usually buy less. Beef is a big exception. Retail beef prices have climbed to new highs, yet demand has grown. USDA’s all-fresh retail beef demand index for the second quarter reached its highest level in at least 25 years, showing that consumers continue to choose beef even when budgets are tight.
Several forces are supporting this trend. First, Americans are more focused on protein. Fitness-minded consumers value protein for strength and wellness, and many are choosing beef to meet those goals. New weight-management medicines have also encouraged higher protein intake across many diets. Second, access to restaurant-quality beef at grocery stores has improved. During the pandemic, many families learned to prepare premium steaks at home. That habit has continued, offering a “luxury” experience without a restaurant bill.
Quality is another major driver. Producers invested for decades in genetics and herd management to boost marbling and taste. Today, about 95% of U.S. beef grades Choice or higher, a huge improvement from the past.
“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. “Retail per capita beef consumption is headed for 60 pounds this year. U.S. consumers can’t seem to get enough protein these days, and among animal proteins beef remains king.”