Why Americans are moo-ving toward grassfed beef

By Jeanne Turner | September 1, 2016

Dive Brief:

• The percent of operators reporting use of grassfed beef items on their menus is growing, with 28% of all foodservice grassfed menu offerings in the fast casual segment
• The U.S. burger restaurant segment alone reported a 19% growth in burgers described as "grassfed" between 2012 and 2015.
• Consumers are willing to pay more for grassfed beef menu items, perceive grassfed as more tasty than grain-fed beef and connect grassfed with the better-for-you health halo.

Dive Insight:

A new certification from the American Grassfed Associationcould help with clarify the designation and ensure the market integrity of grassfed beef. According to the U.S. Department of Agriculture, a grassfed label means the animal ate grass and forage its entire life.

Although grassfed beef isn't necessarily organic, it can be. Grassfed beef has a different taste profile than grain-fed and compared ounce per ounce, grassfed has fewer calories. 

Retailers might want to take notice of this trend because grassfed beef fits into the "free-from" mentality of many consumers who are looking for cleaner labels. In terms of beef consumption, means a source of meat that is free from steroids or antibiotics and was raised with a source of food free from GMOs. 

The webinar presenting these statistics was sponsored by the Australian beef industry. In Australia, approximately 70% of beef is pasture raised, while in the U.S. about 80% of its beef is finished in feedlots. In choosing how to raise beef, weather plays a role as well as the amount of available grassland. However, since consumers are willing to pay more for grassfed beef, U.S. producers may want to reconsider whether it makes economic sense to increase the amount of pasture set aside for it.