Key Takeaways
- CoBank’s latest report highlights U.S. retail beef prices have surged by 9% year-over-year, reaching $8.90 per pound, yet demand continues to rise.
- The USDA’s all-fresh retail beef demand index hit its highest level in at least 25 years in Q2.
- CoBank cites protein demand, improved beef quality, and shifting consumer health perceptions as key drivers.
- Per capita beef consumption is projected to reach 60 pounds in 2025.
- Tight cattle supplies, at a 75-year low, are expected to keep prices elevated through 2026–2027.
CoBank Reports Beef Demand Defies Price Expectations
While most consumer goods experience reduced demand when prices climb to record highs, beef has proven to be an exception. According to new research from CoBank’s Knowledge Exchange, retail beef demand in the U.S. has remained resilient despite higher costs, even edging upward.
The USDA’s all-fresh retail beef demand index rose to its highest level in more than two decades in the second quarter of 2025, underscoring the sustained appetite for beef among American consumers.
CoBank Highlights Factors Driving Consumer Interest
CoBank’s report highlights several factors fueling demand:
- Protein preference – U.S. consumers continue to prioritize dietary protein, with beef seen as a key source.
- Improved quality – More than 95% of beef production now grades Choice or higher, reflecting decades of genetic and production improvements.
- Access to premium cuts – Grocery stores increasingly offer restaurant-quality beef, appealing to consumers seeking affordable luxury.
- Health perceptions – Beef is viewed positively by fitness-focused consumers, and the rise of GLP-1 medications has encouraged greater protein intake.
“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,” said Brian Earnest, lead animal protein economist with CoBank.
Pandemic Shift and Consumer Behavior
CoBank notes that the COVID-19 pandemic shifted consumer spending habits toward “accessible luxury goods,” with beef emerging as a prime example. High-quality cuts at grocery stores provide a fine-dining experience at a fraction of the cost, making beef an attractive option for at-home meals.
Supply Constraints Keep Prices High
On the supply side, cattle numbers remain tight. The USDA’s July mid-year cattle inventory report showed the national herd at 94.2 million head, the lowest mid-year figure on record. Analysts are uncertain whether the herd is contracting or beginning to recover, but most expect supplies to remain limited until at least 2026 or 2027.
This constrained supply, coupled with strong demand, suggests beef prices will stay elevated in the near term. While economic shifts could eventually alter consumer behavior, CoBank’s analysis indicates that, for now, U.S. consumers show little sign of reducing beef consumption.
Read the entire report from CoBan..
CoBank
CoBank is a cooperative bank that provides loans, leases, and financial services to agribusinesses and rural infrastructure providers across all 50 U.S. states. The bank also supports affiliated Farm Credit associations serving over 75,000 rural borrowers in 23 states.
As part of the Farm Credit System, CoBank plays a key role in financing U.S. agriculture and rural development. Headquartered near Denver, Colorado, it operates regional centers nationwide and maintains an international office in Singapore.
