Why Is Steak So Expensive? A Deep Dive into the Soaring Prices

logo by Editorial Staff | Updated on September 24th, 2023

In a world where inflation continues to soar, the rising cost of steak has caught the attention of consumers and culinary enthusiasts alike. Beyond the general price hikes affecting the meat industry, steak seems to be in a league of its own when it comes to expense. With culinary expertise and careful research, let’s dissect the reasons behind the skyrocketing cost of steak, a beloved protein source for many.

Factors Influencing the High Cost of Steak

When you browse the menu at a fine dining restaurant or even the meat aisle at your local grocery store, you can’t help but notice the hefty price tag on premium cuts like Filet Mignon, Tenderloin, and Bone-in Ribeye. There’s a confluence of variables that cause the steak to be so pricey, and it’s crucial to understand each one to fully grasp why that delicious piece of meat is such an investment.

sliced meat beside silver knife

Supply and Demand: A Culinary Economics Lesson

Before diving in, it’s worth noting that there are indeed more budget-friendly steak options out there, often used in hamburgers or sold in less glamorous portions. The heart of the issue is the scarcity of premium cuts. Out of an entire cow, only about 10% of the meat qualifies as top-tier, such as tenderloin, porterhouse, and filet. This means that 90% of the meat from a single animal doesn’t meet the high-quality standard many consumers desire.

With such a limited variety of premium cuts, supply, and demand principles kick into full gear. Butchers and slaughterhouses make sure to use every part of the animal, leaving no waste. Yet, this economic model still places the financial burden on you, the consumer, especially if you’re keen on savoring a luxurious cut.

The Craftsmanship of Butchery

Butchery isn’t just a job; it’s a craft that demands a deep understanding of meat, from its anatomy to its culinary applications. The butchers are like the artists of the meat world. Certain prized cuts are situated in complex parts of the animal anatomy, requiring meticulous skill to extract. Eliminating the excess fat and gristle from a high-quality cut might even take up to half an hour. This laborious process inevitably contributes to the cut’s overall cost, elevating it far above your standard slice of beef.

Tender Choices, Steeper Prices

As consumers, our affinity for tender meat has a considerable impact on price. The demand for tender cuts drives up their cost since they come from areas of the animal that are less frequently utilized for other products. Meat from these regions remains in prime condition, further fueling our willingness to pay top dollar for it.

Meat Grading: A Benchmark for Quality

The USDA employs a meat grading system that establishes quality benchmarks for various beef cuts. Grading categories like Prime, Choice, and Select influence the price. Prime-rated meat is the crème de la crème, featuring the highest levels of freshness and marbling. As you’d expect, this top-tier quality ensures that it also commands the highest prices, whether you’re shopping at a grocery store or dining out.

The Expense of Raising Cattle

Cattle farming is far from an easy or inexpensive venture. Ranchers need to invest in the animal’s health, safeguard against predators, and protect against diseases. Add the escalating costs of feed, fuel, and labor into the mix, and it’s easy to see why these expenses inevitably trickle down to consumers. Cattle require around 18 months of nurturing before they’re considered ready for butchery. And if they’re grass-fed, that timeline extends to nearly three years, largely due to the lower caloric intake compared to grain-fed cattle.

The Luxury of Wagyu Beef

When discussing costly steak, one can’t overlook Wagyu, a decadent meat derived from specific Japanese cattle breeds. Its rich, buttery flavor owes much to the meat’s abundant marbling. This quality comes from a specialized breeding program and stringent Japanese regulations. Authentic Wagyu can cost upwards of $200 per pound, thanks in part to its scarcity and superior marbling.

Dry-Aging: A Time-Intensive Indulgence

Dry aging is another factor that can make your steak more costly. This method involves storing beef in a climate-controlled room for several weeks, altering both its flavor and texture. As the meat dries, it also shrinks in size, resulting in a heftier price tag. You’re paying for the time, skill, and specialized facilities needed to create this culinary delicacy.


While it’s true that meat prices have generally risen since 2020, the cost of beef—and steak in particular—has seen a sharper ascent. Various factors contribute to this trend, ranging from labor-intensive butchery to quality grading systems and the global demand for specialized breeds like Wagyu. Understanding these elements not only makes us informed consumers but also elevates our appreciation for that next succulent steak we’re fortunate enough to enjoy.


Editorial Staff

Our writers, editors, content managers, and SEO specialist. We all take part in crafting amazing articles. We spend hours ensuring that each article is based on facts, researched, and thorough. You'll never want to click the back button to look for more answers other than here!