How Australian red meat is navigating changing customer values

As cost-of-living pressures reshape household spending and global trade flows continue to evolve, Australia's red meat industry is continuously being challenged to balance value, quality and innovation.

Yet according to Scott Cameron, Meat & Livestock Australia's (MLA) Group Manager – Insights and Strategy, the sector remains well positioned to succeed by focusing on what consumers value most: affordability, versatility, convenience and trust.

Scott believes cost-of-living pressures globally continue to be one of the most influential factors affecting food purchasing decisions.

"Cost of living is one of the biggest influences that's really determining consumer behaviour when it comes to purchasing not only red meat, but fresh meat generally," he said.

Value-packed protein

As households become more conscious of their spending, consumers are increasingly looking for protein options that provide value, flexibility and ease of preparation. This is particularly evident in the midweek meal occasion, which accounts for the majority of red meat consumption. Consumers want meals that are quick to prepare, deliver reliable results and offer enough variety to keep family menus interesting.

Fortunately, these are areas where Australian beef and lamb are well placed to compete.

The domestic market continues to demonstrate resilience despite rising prices across the supply chain. Scott noted that over the past year saleyard prices have increased significantly, with some of these increases flowing through to retail shelves. Yet consumers have continued to demonstrate a willingness to pay more for beef and lamb.

A key reason is the breadth of options available to consumers. From premium steak cuts such as rib-eye and scotch fillet through to everyday staples like mince, sausages and roasting cuts, Australian red meat provides products at a wide range of price points.

This diversity enables consumers to tailor their purchases to their budgets while still enjoying high-quality protein. It also helps maintain demand during periods of economic uncertainty, with consumers able to trade between cuts rather than leave the category altogether.

Changing demographics provide opportunity

Australia's changing demographics are also creating new opportunities for the industry. More than 30% of the nation's population is now overseas-born, with migration from countries such as India and China contributing significantly to population growth.

“While these consumer groups typically consume less red meat per capita than Australian-born consumers, they present important opportunities to improve carcase utilisation and capture greater value from a broader range of cuts,” Scott said.

Traditional dishes from Indian and Chinese cuisines often utilise cuts that may be less familiar in mainstream Australian cooking. Bone-in lamb shoulders and legs, for example, are well suited to curries and biryanis, while thinly sliced beef secondary cuts are commonly used in a range of Asian dishes.

As Australia's population becomes more culturally diverse, aligning product offerings with these culinary traditions can support both consumption growth and improved returns across the value chain.

Growth in South-East Asia

South-East Asia continues to emerge as one of the most promising growth regions for Australian red meat. Thailand, in particular, has strengthened its position as a valuable market for Australian exports.

"The country's vibrant foodservice sector, growing tourism industry and increasing appetite for premium dining experiences have underpinned demand for Australian beef and lamb,” Scott said.

Australia has established a dominant position in Thailand's imported chilled beef segment, with premium grass-fed product performing strongly. Looking ahead, Scott said he sees potential for grain-fed beef exports to expand further as market diversification opportunities emerge across the region.

The growing sophistication of Thailand's hospitality industry is also creating opportunities for premium products, with chefs valuing the consistency and eating quality associated with Australian grainfed beef.

Japan remains another critical market for Australian exporters. While much attention has been focused on the country's ageing population and associated challenges for meat consumption, Scott highlighted several positive developments that continue to support demand.

Australian beef maintains a strong presence within Japan's retail sector, benefiting from high levels of consumer trust and strong country-of-origin recognition. At the same time, record tourism levels are generating increased demand within foodservice channels, including both traditional Japanese cuisine and international dining experiences.

Australia's reputation for safety, consistency and quality continues to resonate strongly with Japanese consumers, reinforcing its premium positioning. Lamb is also finding growing opportunities within foodservice, providing chefs and consumers with greater menu variety and nutritional choices.

US demand remains robust

The United States (US) remains Australia's largest beef export market and has been a major driver of export demand in recent years. Strong import demand, driven in part by reduced US cattle numbers, has created significant opportunities for Australian exporters.

“In the near term it’s expected that US demand to remain robust. However, the eventual rebuilding of the American herd is likely to reduce reliance on imported beef over time,” Scott said.

Moving into the future, Australia's competitive strengths in grassfed production, premium chilled beef, provenance assurance and sustainability credentials will become increasingly valuable as competition intensifies.

United Kingdom embracing global cuisines 

Meanwhile, the United Kingdom continues to present new opportunities as consumer tastes evolve beyond traditional dining occasions. British consumers are increasingly embracing global cuisines, particularly Asian, Middle Eastern and fusion-inspired cooking styles.

This trend creates opportunities for Australian beef and lamb to feature in a wider range of meal occasions beyond traditional roasts and special-event dining. Premium grainfed beef, Wagyu and grassfed beef all stand to benefit from growing consumer interest in international flavours and premium food experiences.

However, as with many markets around the world, cost-of-living pressures remain a consideration. Building relevance for affordable cuts and convenient meal solutions will be critical to driving sustained consumption growth.

Global food trends study 

Looking ahead, MLA is undertaking a new global food trends study that will explore the broader cultural and behavioural shifts influencing food demand worldwide. Expected to be released in August, the research aims to provide deeper insight into the macro trends shaping consumer preferences and purchasing decisions.

For industry participants, understanding these trends will be essential. As MLA’s insights demonstrate, success in today's marketplace requires more than producing premium red meat. It requires an ability to meet changing consumer needs, identify emerging opportunities and continuously adapt to an evolving global marketplace.

While market conditions may continue to shift, Australia's reputation for quality, consistency and innovation ensures the industry remains well placed to capture growth opportunities both at home and in our international markets.