LONDON, Sept. 17, 2021 /PRNewswire/ -- The use of supplements, hormones, and antibiotics has risen exponentially in the production of conventional beef to cope with surging global demand. Consumers have expressed their concern at this trend for health, environmental, and animal welfare reasons. The awareness of superior quality meat is helped by aggressive promotional campaigns of grass-fed beef on the Internet, TV, and documentaries that highlight the side-effects of antibiotics on cattle. Furthermore, regulatory frameworks that promote better dietary habits are likely to swing the balance in favour of grass-fed beef during the forecast period.
As per Fairfield Market Research, the grass-fed beef market is predicted to record a CAGR of 4.4% and be worth $13,369 Mn by end 2025.
Conventional Segment to Dominate Global Grass-Fed Beef Market for Foreseeable Future
The conventional grass-fed beef segment comprised the bulk of the grass-fed beef market in 2020. COVID-19 disrupted global supply chains as producers could only procure raw material domestically, resulting in huge demand for conventional beef. COVID-19 restricted beef exports and reshuffled trading patterns. Several beef producers are highly reliant on imported grass-fed beef. For e.g.- the U.S. imports approx. 75-80% of its grass-fed beef by value. COVID-19 has also resulted in the need for robust regulations pertaining to grass-fed beef. Bord Bia, the Irish food board, introduced guidelines for the distribution and supply of grass-fed beef that enables tracking the percentage of grass consumed by cows during their lifespan.
Irish Standard for Grass-fed Beef Could Point to Beneficial Regulations Going Forward
In October 2020, Bord Bia unveiled a grass-fed standard for beef, allowing the Irish Food Board to track the percentage of grass consumed by local beef. Research conducted by Bord Bia stated that 64% of consumers were willing to pay a premium for grass-fed beef as they believe that grass-fed cattle led more natural lives and were treated ethically. Most importantly, the research revealed that there was also strong demand in export markets as beef producers turn to grass-feed beef as a means of differentiation. Bord Bia expects the maximum demand to be in Germany, Italy, and the U.K. with more markets to follow soon after.
Distribution And Slow Rearing Nature of Grass-Fed Beef Biggest Challenges to Overcome
The grass-fed beef market is characterized by the presence of several small-scale companies. Distribution and processing remain the primary challenges to overcome as the majority of grass-fed cattle are sold directly by smaller producers through direct marketing. Moreover, the production of grass-fed beef is a time-intensive process as the cattle must be raised on grass for the duration of their life, taking nearly two years on average.
Widespread Consumption in U.S. Makes North America Key for Grass-fed Beef Growers
North America and Latin America dominated the grass-fed beef market during the period of assessment with a combined market share of 71%. Both regions have large meat-eating populations but there has been a notable shift towards better quality meat due to worries about the carbon footprint of the meat-growing industry. In terms of growth, the Asia Pacific region is poised to grow at the fastest rate until 2025, with China, Japan, and Australia leading the charge. Australia is on track to become one of the largest grass-fed beef producers in the world along with other major producers such as Brazil, Argentina, and Uruguay.
Some of the key players profiled the research report about global grass-fed beef market Conagra Brands, Inc, Hormel Foods Corporation, Pre Brands LLC, JBS SA, Teys Australia Pty Ltd, , Perdue Farms, Inc, Australian Agricultural Company Limited, Meyer Natural Food, The Asian New Zealand Meat Company (ANZCO), and Verde Farms.
Companies Forming Partnerships With Farmers to Ensure Steady Supply of Grass-fed Beef
Companies in the grass-fed beef market are entering alliances with farmers to guarantee a supply of grass-fed beef. Prominent players profiled in this report on the grass-fed beef market are Conagra Brands, Inc, Pre Brands LLC, Hormel Foods Corporation, JBS SA, Perdue Farms, Inc, Teys Australia Pty Ltd, Meyer Natural Food, Australian Agricultural Company Limited, Verde Farms and The Asian New Zealand Meat Company.
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