Australian lamb exports to the United States are experiencing strong demand, with the US becoming one of Australia's largest export markets alongside China. This surge in demand is attributed to a "protein craze" across all generational groups in America, with lamb being seen as a new luxury item, similar to Wagyu beef. Despite this growing popularity, Americans consume only about half a kilogram of lamb per person annually, compared to 40 kilograms of chicken and 4-6 kilograms of sheep meat for Australians. The industry is actively seeking ways to increase this low consumption.
The global demand for lamb, coupled with rising prices, is benefiting Australia. Retail lamb sales in the US, while a niche sector at $959 million compared to the $45.1 billion beef sector, showed significant growth, with sales up 7.4% by value. In the first quarter of 2026, US retail lamb dollar sales increased by 9.8% compared to Q1 2025, reaching nearly $981 million nationally over the past 52 weeks. Analysts predict continued high prices for lamb, with an annual average of 1225 cents/kg for trade lambs in 2027 and prices not expected to drop quickly even into 2029.
Challenges remain for Australian lamb exports to the US, including a 10% tariff on lamb, even though beef is exempted. The US takes approximately 16% of Australia's sheepmeat and lamb exports, accounting for 80% of its sheepmeat and lamb imports. US-based chef Jess Pryles is working to popularize Australian lamb, which she believes is "nowhere near" as popular as it should be, particularly by introducing it in cooking methods familiar to American consumers, such as smoking and rotisserie. Australian lamb racks are selling for about $US17.68 per pound or $A56/kg in the US.
