Japanese wagyu prices drop 37% in US as supply grows, yen weakens

Japanese wagyu is reaching more American consumers as wholesale prices have fallen more than 30 percent in recent years, driven by rising domestic supply in Japan, a weaker yen and an expanding import and retail network in the United States.

The wholesale price of Japanese wagyu striploin in the US has dropped about 37 percent, from $65 per pound to $41 per pound, the Wall Street Journal reported Monday (local time). That works out to roughly $9 per 100 grams.

The price decline reflects growing wagyu supply within Japan and the prolonged weakness of the yen. A growing number of US importers and distributors handling Japanese wagyu have also helped bring down prices and improve accessibility.

Japanese wagyu still commands a significant premium over conventional beef. US retail prices frequently exceed $100 per pound depending on the cut and rating.

The broader US wagyu market is on a growth trajectory. Market research firm Straits Research estimated the market at $1.68 billion last year, and projects it will reach $1.79 billion this year and $2.96 billion by 2034. Those figures cover not only Japanese imports but also American-raised wagyu and crossbred products.

Sales channels are widening as well. Costco sells A5-grade wagyu strip steaks from Japan's Kagoshima Prefecture online, including 3-pound packages, alongside other Japanese A5 wagyu cuts. Asian grocery stores and online specialty meat retailers also carry thinly sliced wagyu and steakhouse cuts.

Some restaurants are offering Japanese A5 wagyu in smaller portions, making it more accessible to diners. Several Japanese restaurants inside Walt Disney World have added A5 wagyu steak and sushi to their menus.

Because wagyu is defined by its dense intramuscular fat marbling, it is typically served in smaller portions than conventional steak. Consumption patterns are also shifting toward smaller servings — grilled in thin slices, served as sushi or prepared in hot pot dishes — rather than large cuts eaten all at once.

Not all 'wagyu' in the US is Japanese

While the wagyu name has gone mainstream in the US, not every product carrying the label is made from beef raised in Japan.

A notable example is the "Wagyu Steakhouse Burger" that fast-food chain Arby's sold in the past — it was made from a blend of American wagyu and conventional beef, not Japanese A5 wagyu. American wagyu itself is often produced by crossbreeding Japanese wagyu cattle with other breeds.

The distinction between Japanese wagyu and American wagyu is increasingly seen as important in the US market.

In Japan, cattle recognized as wagyu are managed around four core breeds: Japanese Black, Japanese Brown, Japanese Shorthorn and Japanese Polled.

Japan assigns each individual animal a 10-digit identification number, allowing traceability of its birth date, breed, farm of origin and slaughter information from production through distribution.

Among Japanese beef ratings, A5 represents the highest level in both yield and meat quality assessments. It is marketed in the US as a premium product, particularly for its abundant intramuscular fat.

Yen weakness boosts Japanese exports; Korean hanwoo yet to enter US market

The expanding US market is opening new export opportunities for Japan's livestock industry.

As domestic wagyu supply has grown and the yen has remained weak, Japanese producers have gained price competitiveness abroad and are broadening their overseas sales, supported by a growing network of US distributors.

Korean hanwoo beef, by contrast, has yet to enter the US market officially.

According to the Ministry of Agriculture, Food and Rural Affairs, Korea's official hanwoo export markets have expanded to include Hong Kong, Malaysia, Cambodia, Laos and the UAE. The US is not yet on the official export list. Exporting beef to any country requires prior agreement on quarantine and sanitary conditions with the importing nation.

As Japanese wagyu expands its US footprint on the back of lower prices and a broader distribution network, competition among beef-exporting nations for a share of the premium market is expected to intensify.