Outlook for beef demand

Beef prices are much higher this year and are expected to increase over the next several years as U.S. beef production decreases. Data from the U.S. Bureau of Labor Statistics shows all fresh retail beef prices averaging $8.48 per pound through July 2025, up $0.53 per pound from the same period last year (chart 1). Understandably, higher beef prices have raised ongoing concerns about consumer demand, a topic that comes up frequently in cattle market discussions and Extension meetings.

I know this may seem like a subtle nuance, but there is an important difference between a change in quantity demanded and a change in demand for beef. A decline in beef consumption because prices are higher is a change in quantity demanded or movement along the demand curve. This is simply the law of demand: When the price of beef rises, the quantity demanded falls, holding all else constant. By contrast, a decline in beef demand means the entire demand curve shifts inward due to factors such as lower consumer incomes, shifts in preferences or changes in the relative prices of substitute proteins like chicken and pork.

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University of Arkansas

September 10, 2025