Booming American demand for Australian beef is creating market dynamics that could benefit domestic foodservice operators, with exports jumping 31% year-on-year and driving increased production capacity that may help stabilise local pricing and supply chains, according to new data from Meat & Livestock Australia.
Australian beef exports to the United States surged in the year-to-date period through June 2025, with frozen grassfed volumes climbing 55% and chilled grainfed rising 34% compared to the same period last year, MLA data shows.
The growth has helped Australia overtake Canada to become the second-largest beef supplier to the US market, trailing only Brazil in total volume.
The export boom is being fuelled by American consumers’ willingness to spend on premium protein despite economic headwinds. Nearly 94% of US consumers report they’re willing to splurge on meat for special occasions and holidays or to replace restaurant meals, the MLA data revealed, with retail sales of wagyu and lamb roasts increasing as shoppers seek restaurant-quality meals at home.
Premium positioning pays dividends
While Brazil leads in lower-cost processing beef, Australia has carved out a competitive advantage in higher-value cuts. Premium products like grass-fed cube roll/rib-eye roll grew 27%, while grain-fed tenderloin exports jumped 109% year-on-year.
“We’re not just meeting demand but continuing to grow it – from manufacturing beef to premium foodservice offerings,” said Paul da Silva, Meat & Livestock Australia’s Regional Manager for North America.
Domestic market implications
The robust export demand could signal positive developments for Australia’s domestic foodservice sector. Strong overseas pricing typically encourages increased production capacity, which can help ease supply constraints and price volatility in the local market.
With US restaurant traffic down 7% in Q1 2025 but premium-focused segments like fast casual and full service still finding traction, Australian beef producers are well-positioned to serve multiple market channels simultaneously.
The export success also provides Australian beef producers with diversified revenue streams, potentially reducing their reliance on domestic pricing pressures and creating more stable supply arrangements for local foodservice operators seeking consistent, high-quality protein options.
Australia’s lamb exports to the US also grew 5%, maintaining the country’s dominant 70% market share in American lamb imports, the MLA figures show, further demonstrating the strength of Australian red meat’s premium positioning in international markets.
