Beef consumption will increase by 1.15 per cent per year to reach $2.1 trillion US by 2020, says Grand View Research Inc. of San Francisco.
Beef is the third-most consumed meat globally and it will gain on pork and poultry as people in developing nations earn more income, says the report.
Another factor favouring beef is food safety issues such as chemical residue and pathogen detection in other meat products.
Ground beef is the most-consumed product, with demand exceeding 29.5 million tons in 2013.
Beef steaks are expected to be the fastest-growing segment due to increased preference for high quality beef, particularly in North America. Demand is estimated to increase at a rate of rate of 1.24 percent from 2014 to 2020.
The report also says:
- The global beef demand was 67.4 million tons in 2012 and is expected to reach 72.9 million tons by 2020, growing at a compound annual growth rate of 1.15 percent from 2014 to 2020.
- Asia Pacific is expected to be the largest regional market for beef with revenue exceeding $580 billion in 2013. Growing disposable income of China coupled with high preference for red meat are the reasons.
- Increasing demand for halal beef in predominantly Islamic nations is expected to be a key factor having a positive impact on the market. The demand for Kosher beef is expected to increase in North America owing to consumer perceptions that it is a safer, higher quality and healthier beef.
- The global market was moderately consolidated with the top four companies accounting for more than 70 percent of the market in 2013. The key companies in the market include Tyson Foods, JBS, National Beef Co. and Cargill Meat Solutions.