By Jamie Martin
Beef demand is breaking the usual rules of economics. Retail prices have surged, yet shoppers are not walking away. USDA data show the all-fresh retail beef demand index hit a 25-year high in the second quarter, signaling strong consumer preference even as budgets face pressure.
Why is demand so steady? One reason is the country’s continued focus on protein. Many consumers now plan meals around protein, and beef remains a top choice for taste and nutrition. Interest in higher-protein eating has also spread as new weight-loss medicines highlight the role of protein in preserving muscle.
Another reason is access to better beef at home. Since the pandemic, retailers have expanded premium offerings, so families can enjoy steakhouse-style meals in their kitchens. This trend matches a broader shift toward “leveling up” with attainable luxury foods. In parallel, industry investments in genetics and feeding have paid off. Roughly 95% of U.S. beef now grades Choice or higher, reflecting consistent marbling and flavor improvements built over decades.
“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.”
Supply is the tightest piece of the puzzle. The July mid-year cattle inventory was about 94.2 million head—the lowest mid-year count on record. Analysts expect limited supplies through at least 2026, and possibly into 2027. That suggests prices will stay elevated. For now, consumers are proving that, even at higher prices, beef remains a favorite on America’s table.
Photo Credit: usda
Categories: National