Will Consumers Pull Back On Beef Purchases
Summer grilling season is in full swing, and demand for beef remains strong—but new data suggests there could be challenges ahead.According to a recent American Farm Bureau Market Intel report, U.S. consumer sentiment is on shaky ground. The University of Michigan’s Index of Consumer Sentiment dropped to 50.8 in May 2025—a 26.5% decline from the same time last year. That matters, because when household finances take a hit, meat—particularly higher-end options like beef—can quickly shift from staple to splurge.
The Market Intel report also highlights findings from Kansas State University showing that meat price inflation in 2025 has outpaced inflation for other goods and has remained elevated for five straight years. That could reflect higher production costs, continued strong demand, or both.
While demand for beef has remained remarkably steady despite higher prices, future buying decisions may hinge on how consumers are feeling about their economic outlook.
It’s a reminder that even as grilling season heats up, the market is still tied closely to consumer confidence.