Market News

(Bloomberg) -- Beef demand in China, the world’s second-largest consumer, is set to decline for a second straight year in 2026, as a slowing economy squeezes household income.

Behind only the US, China’s consumption this year is projected at 11.17 million tons, down 3% from a year ago, and will drop further next year to 11.04 million tons, according to a report from the Foreign Agricultural Service of the US Department of Agriculture.

Once the driving force behind global beef demand thanks to its expanding middle class, China now appears to be losing momentum as economic pressures weigh on its consumers and reshape the country’s appetite for premium proteins.

Consumers are likely to curb discretionary spending, especially on pricier meats, and opt for cheaper alternatives like poultry and pork, the FAS report said. Meanwhile, the central government’s crackdown on lavish official banquets would also likely dampen demand, it added.

Still, China’s beef imports in the new year are seen rising slightly due to a drop in domestic output as some producers exit following sustained losses, according to the FAS report.

The FAS contributes to the USDA’s official estimates, which currently pegs China’s 2025 beef consumption at 11.55 million tons.