US demand for Aussie red meat stays strong

The United States (US) economic indicators remain mixed with inflation cooling to 2.4% but Gross Domestic Product (GDP) growth slowing and consumer sentiment sits well below pre-Christmas levels. However, shoppers continued grocery spending – helping to underpin the strong performance of Australian red meat exports to the US.

Consumers stay at home but prioritise taste

Nearly 94% of US consumers report they’re willing to splurge on meat for special occasions and holidays or to replace restaurant meals. Retail sales of wagyu and lamb roasts have increased as shoppers seek restaurant-quality meals at home. This demonstrates consumers continue to prioritise taste and experience while staying mindful of value.

US restaurant traffic fell 7% in Q1 2025. Overall spending declined 5% despite 2% menu price increases. However, foodservice segments focused on quality and experience – like fast casual and full service – are finding traction.

Australian red meat continues to serve both foodservice and retail channels. It’s meeting the market’s demand for a diverse range of products – particularly when the US is under tight domestic supply. As consumers increasingly prioritise value and shift towards dining at home, there are valuable opportunities for Australian exporters to deliver quality and consistency.

Momentum continues for Australian US red meat exports

Australian US beef exports continued momentum from 2024, climbing 31% year-on-year. Both frozen grassfed (+55%) and chilled grainfed (+34%) volumes performed strongly. While grassfed manufacturing holds the largest volume share, premium cuts like grassfed cube roll/rib eye roll (+27%) and grainfed tenderloin (+109%) recorded impressive growth.

Lamb exports grew 5% for the same period, led by with chilled products. Australia is well-positioned as the top US lamb supplier, especially with New Zealand volumes under pressure. 

Australia globally leads US beef exports and maintains premium edge over Brazil

Australia has overtaken Brazil as the leading supplier of beef to the US, driven by strong demand and consistent export volumes. Brazil remains a key player, having rapidly fulfilled its shared low-tariff quota earlier this year. Meanwhile, Canada’s year-to-date exports have declined by 10% amid ongoing trade tensions.

Brazil’s growth is centred on lower-cost processing beef. Australia, however, has leveraged its competitive edge by offering a reliable, diversified supply – including an expanding range of higher-value cuts.

Australian US lamb exports dominated with a 70% share - supported by consistent chilled and frozen offerings.

"What’s clear is that Australia’s reputation in the US is both strong and evolving,” said Paul da Silva, Meat & Livestock Australia’s Regional Manager – North America. 

“We’re not just meeting demand but continuing to grow it – from manufacturing beef to premium foodservice offerings.”