The industry has made substantial progress in beef quality, with strong consumer demand supporting premium pricing. Quality grade improvements and consistency have been major success stories.
U.S. Bureau of Labor Statistics shows the average retail price of ground beef rose to a record $6.32 per pound in August 2025.
This is up from $6.25 in July and $5.74 in August 2024. Prices for certain beef cuts might ease with the end of peak grilling season, but ground beef prices remain historically high.
Don Close, Terrain senior animal protein analyst, says: “What we have seen so far is consumers have been incredibly loyal to protein collectively, but they have been especially loyal to beef. Beef is actually continuing to gain market there — even at the current prices — at the expense of the other protein.”
Close says when he correlates the monthly all fresh beef price to hourly wages, he found they are in lock step.
“Yes, beef prices have escalated, but beef prices have not risen any faster than the improvement in overall hourly wage,” he explains. “So, from the consumer’s perspective, their share of their paycheck committed to beef is essentially the same as it’s been on a comparative basis for years.”
Other contributing factors to beef demand include consumers’ craze for protein and the impact of GLP-1 diets on protein consumption.
According to Dave Weaber, Terrain senior animal protein analyst, beef spending has dramatically increased since COVID-19 —outpacing pork and poultry combined. Weaber says consumers are now spending about $84 more per capita annually on beef compared to the 2005-2015 period.
He attributes this growth to several factors:
- Improved beef quality: The industry has seen a substantial increase in Prime and Choice beef, with nearly 85% of heifers and 75% of steers now grading in these top categories.
- Changing consumer preferences: Younger generations are spending more on high-quality beef, both in restaurants and at home, driven by increased cooking skills and appreciation for beef’s flavor and quality.
- Health perception: Beef is now viewed more positively as a health product, with increased transparency and better communication from the industry.
Close says the role of strong demand can’t be ignored and is likely to continue.
“I think it’s certainly through 2026 and, really more realistically, somewhere deep into 2027,” he summarizes.
The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.
For more insights to the report as well as producer and economist perspectives, watch the State of the Beef Industry Webinar exclusive on FarmJournal.tv. The panel includes Odde along with Matt Perrier, Angus seedstock producer from Kansas, and Lance Zimmerman, RaboResearch senior beef industry analyst. You won’t want to miss their thoughts on the beef industry today and in the future.
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