Hanwoo Can't Even Dream of This... "Melts in Your Mouth" as Wagyu Hits It Big in U.S. Supermarkets and Fast-Food Chains

Japanese Wagyu Gains Price Competitiveness with Yen Depreciation and Increased Supply
Expanding Beyond High-End Restaurants to Supermarkets, Stadiums, and Fast Food Chains

Japanese Wagyu is rapidly becoming popular in the U.S. market. Increased supply in Japan and a weaker yen have boosted its price competitiveness, while U.S. import and distribution networks have expanded, making Wagyu readily available at large supermarkets, stadiums, and fast food restaurants.

Food sold at New York wagyu omakase restaurant 'Yakiniku Great'. Screenshot from Yakiniku Great website

Securing Price Competitiveness Through Yen Depreciation and Increased Supply... Expansion of U.S. Import and Distribution Networks

According to the Wall Street Journal (WSJ) on September 21 (local time), the wholesale price of Japanese Wagyu striploin in the U.S. has declined in recent years, dropping from $65 per pound (approximately 454g) to $41 per pound. This amounts to about $9 per 100g (around 12,500 won). This trend has been driven by increased Wagyu supply in Japan, the continued depreciation of the yen, and the expansion of importers' networks in the U.S.

Retail prices still start at around $100 to $120 per pound. Nevertheless, as the prices of other beef have reached all-time highs, the price burden of Wagyu is now considered relatively less significant. The fact that Wagyu has a high fat content and a rich flavor—which means consumers typically eat smaller portions compared to regular steak—has also contributed to its growing popularity.

The size of the Wagyu market in the United States is also expanding rapidly. Including American crossbreeds and other types, the total Wagyu market is currently valued at $1.8 billion and is expected to reach $3 billion by 2034.

Japanese Wagyu is rapidly becoming popular in the U.S. market. Photo by Pixabay.

Japanese Wagyu Spreading to U.S. Stadiums, Supermarkets, and Fast Food Chains

While premium steakhouses were previously the main sales outlets, Wagyu is now being sold at stadiums, major retailers, and fast food restaurants as well.

The fast food chain Arby’s is selling Wagyu burgers. Costco offers 3 pounds of Japanese A5-grade strip steak at some stores and online for $349. The Asian grocery chain Mitsuwa Marketplace also sells thin-sliced A5 beef for hotpot at $120 per pound.

As the term "Wagyu" has become widely used in the United States, there are now significant quality differences between products. Authentic Japanese Wagyu comes from four specific breeds, including the Japanese Black, with strict management of breeding and production processes. In Japan, a 10-digit individual identification number allows consumers to trace the animal's birth date, breed, farm of origin, and processing history.

Interest is also growing in A5-grade Wagyu, classified as the highest quality among Japanese Wagyu. A5 Wagyu is distinguished by its high marbling and fat content. Some high-end steakhouses cook A5 Wagyu tableside for guests, and Disney World even offers A5 Wagyu in sushi form.

The photo is not related to the specific content of the article. Pixabay

The expanding consumption of Wagyu is creating new export opportunities for Japan’s livestock industry. As yen depreciation and increased supply drive the need for Japanese producers to expand their overseas sales channels, American consumers are now able to enjoy premium Japanese beef at lower prices than before.

Meanwhile, unlike Japanese Wagyu, which is quickly making inroads into the U.S. premium beef market, Korean Hanwoo is still not approved for import into the U.S. and remains absent from the market.

The Wall Street Journal reported that Japanese Wagyu is expanding its base of premium beef consumers in the United States, thanks to its signature marbling, flavor, and strict production and traceability systems.

This content was produced with the assistance of AI translation services.