The past several years of lower cow inventories, fewer fed cattle, higher values of live cattle and profitability across the sectors of beef production, and particularly, high retail beef prices lead many of us to ask: “Is there a price point at which consumers are no longer willing and able to enjoy beef?”
As of now, beef demand remains exceptionally resilient and strong. According to the USDA Economic Research Service, wholesale beef prices were 19.7% higher in March 2026 than in March 2025 and are predicted to increase by 7.8% in 2026. Still consumers continue choosing beef. In fact, despite those higher prices, consumers increased both their spending and purchase volume during that same period with beef sales outpacing competing proteins like chicken and pork.
According to consumer survey data:
- The majority of U.S. beef purchasing decisions are based on taste and eating satisfaction. Increasingly, nutritional benefits and health play a role in these decisions, which is also working to beef’s advantage.
- Over the past five years, the willingness of consumers to pay for beef at retail has increased faster than inflation. For example, in 2020 consumers were willing to pay $7.26/pound for ground beef at retail. This price point of their willingness to pay increased to $9.18/pound in 2025.
- Since 2020, the percentage of consumers who regularly consume animal proteins has increased. Currently more than 85% of Americans identify as meat eaters, while the share of consumers identifying a vegetarian or vegan has declined from 14% to 7%.
- Oklahoma is one of the states with the highest percentage of consumers who self-declare as regularly consuming meat.
- As income increases consumers are more willing to pay for beef.
- GLP-1 users are less sensitive to the price of beef.
- On average, consumers in the U.S. work about 13 minutes to pay for one pound of retail beef. For comparison, U.S. citizens work about 100 days each year to pay their annual federal, state and local taxes.
Consumer demand is critically important to the price of beef as well as live cattle of all types. In spite of historically low inventories of live cattle, a higher percentage of the U.S. weekly harvest mix is reaching the premium quality grades (Prime and upper two-thirds of Choice) than ever before. Consumers have responded favorably to improving beef quality. Greater supply of marbling-rich beef has allowed more consumers to try the premium quality product. Consumers like it and are willing to spend more to enjoy it. The phenomenon has increased demand across the entire beef industry.
References:
https://www.agmanager.info/livestock-meat/meat-demand
Increased Beef Carcass Quality. Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist. April 6, 2026 Edition of the Cow-Calf Corner Newsletter. https://extension.okstate.edu/programs/beef-extension/cow-calf-corner-the-newsletter-archives/2026/april-6-2026
