U.S. beef demand holds firm as steak prices stay near record highs

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U.S. beef demand and prices

Highlights

Beef sales rose by about $352 million year-over-year ahead of Independence Day, making it the largest dollar growth food category per NielsenIQ.
U.S. ground beef averaged $6.75 per pound in May, up nearly 13% year-over-year, while steak averaged $12.80 per pound, up 16%.
Cattle herd levels at multi-decade lows due to drought and herd liquidation continue to keep supply tight and prices elevated across retail and food service channels.

Holiday demand supports premium beef spending

According to CNBC, NielsenIQ data show beef is generating the largest dollar growth of any food category ahead of Independence Day, with sales rising by about $352 million from last year.

Shoppers are still buying beef even as prices remain high, indicating that summer grilling demand is not weakening. The consumer research firm says households are making more shopping trips with clearer purchase plans, while continuing to spend on steak for key occasions.

Kroger says customer demand for steaks remains quite high, with a shift toward more premium and organic options. The retailer also says beef remains a preferred choice during recent holidays, including Easter and Memorial Day.

Supply pressure keeps prices elevated

Years of drought, high feed costs and herd liquidation have reduced the U.S. cattle herd to its lowest level in decades, tightening supply and lifting cattle prices. That pressure continues to feed through to grocery stores and restaurant menus.

U.S. Bureau of Labor Statistics data show the average price of ground beef is $6.75 per pound in May, up nearly 13% from a year earlier and just below April's record $6.90. Beef steak averages $12.80 per pound, up 16% from a year ago and marking the second-highest level on record.

The spending pattern suggests consumers are not simply moving to the cheapest protein options. Instead, many buyers are treating steak as an affordable luxury, paying more for quality cuts and labels while looking for savings elsewhere in their grocery baskets.

Our earlier report on U.S. July 4 beef-price inflation detailed how drought, wildfires, and import restrictions were keeping cattle supplies near multi-decade lows, sustaining elevated beef prices into the peak grilling season. We noted that these supply constraints were pushing up the overall cost of a summer barbecue and adding pressure to household budgets, while some shoppers responded by substituting cheaper proteins like chicken and pork.

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