The latest data from the Sheep Industry Review and Q4 Retail Report highlights a resilient and evolving US lamb market, driven by strong demand, premium positioning and expanding opportunities for American lamb.

Demand holds strong

In 2025, lamb continued to demonstrate its strength as a premium protein. Even in a dynamic economic environment, consumers remained engaged, balancing everyday value with meaningful, high-quality purchases.

Retail performance reflects this strength, with total lamb dollar sales increasing 7.4% year-over-year. Elevated retail prices and continued consumer interest reinforced lamb’s position as a sought-after protein in the marketplace.

American lamb builds momentum

American lamb continues to gain traction with both consumers and retailers. Domestic lamb outperformed the overall category, with dollar sales up 9.4% and volume increasing 5.9%. This is a clear indication of the growing preference for American-raised lamb.

This momentum reinforces the importance of origin, quality, and the strong connection consumers feel to American agriculture.

Supply: opportunity to grow in a tight market

Supply conditions continue to support strong pricing; however, ongoing tight supplies also highlight the opportunity and need for thoughtful growth in the United States to ensure long-term market stability and continued demand for American lamb.

• Total US sheep and lamb inventory stands at 4.99 million head
• Production held steady in 2025, with a 0.4% increase
• Historically low frozen inventories continue to underpin price strength
• While imports declined from 2024 levels, they remain the second-highest volume on record, continuing to play a significant role in meeting US demand

Strong prices are a positive signal of demand, but tight supply alone does not create a stable or growing market. As consumer interest in lamb continues to expand, there is a clear opportunity for U.S. producers to capture more market share.

Strategic flock growth and increased production can help:

• Strengthen market stability over time
• Reduce reliance on imports
• Ensure consistent availability for retail and foodservice partners
• Support the continued growth of American lamb’s market share

With demand momentum already in place, the focus moving forward is not just maintaining price strength but building a more resilient, growing supply that positions the U.S. lamb industry for long-term success.

Retail trends: versatility drives growth

Consumer interest is expanding across a range of lamb products, particularly those that offer versatility and ease of preparation:

• Ground lamb led growth with +13% in dollar sales and +7.5% in volume
• Blade chops also posted solid gains in both dollars and pounds

These trends highlight an opportunity to introduce lamb into more everyday meal occasions while maintaining its premium appeal.

Strong performance across markets

Growth was seen across major US markets, with standout performances in key regions. Markets like Denver and Houston led in dollar growth, demonstrating the expanding reach and appeal of lamb nationwide.

Global demand for U.S. lamb is also on the rise. Export volumes increased 44% year-to-date, reaching the highest levels in over a decade, while export value climbed significantly, reflecting strong international interest.

This continued growth in exports provides additional support and opportunity for the industry moving forward.

“As we look at the momentum in 2025, it’s clear that demand for American lamb remains strong and continues to grow,” said ALB Chairman David Fisher. “From retail performance to export growth, our industry is well-positioned to build on this success and connect with consumers in new and meaningful ways.”

As the industry moves into 2026, the outlook remains positive. Strong consumer demand, growing market share for American lamb, and expanding product versatility all point to continued opportunity.

Source: American Lamb Board