Quarterly Circana Lamb Report
The U.S. lamb category delivered another strong quarter at retail, with dollar sales posting robust gains despite continued pressure on volume. The latest American Lamb Board retail analysis shows consumers are spending more on lamb than ever before, even as higher prices temper pounds sold.
Key Takeaways
Dollar sales climbed nearly 10% in Q1.
During the first quarter of 2026, U.S. retail lamb dollar sales increased 9.8% compared with Q1 2025. Over the latest 52 weeks, dollar sales were up 10.2%, reaching nearly $981 million nationally.
While revenue growth remains strong, volume sales told a different story. Pounds sold declined 2.5% during Q1 and slipped 0.6% over the latest 52 weeks, highlighting the ongoing impact of rising retail prices.
Lamb Prices Return to 2022 Levels
The primary driver of sales growth continues to be pricing. Average retail lamb prices increased 12.6% year-over-year in Q1, rising from $8.13/lb. to $9.15/lb. Every U.S. region experienced price increases, with the Southeast posting the largest jump and becoming the highest-priced region at $9.74/lb.
Despite inflationary pressures and broader consumer concerns about household spending, lamb has demonstrated remarkable resilience, maintaining strong dollar performance nationwide.
Domestic Lamb Continues to Gain Ground
One of the most encouraging trends for American producers is the continued momentum behind domestic lamb.
For the fifth consecutive quarter, domestic lamb outperformed both imported lamb and the overall category. Over the latest 52 weeks, domestic lamb sales increased 12.4% in dollars and 5.7% in volume at participating ALB retailers.
This stands in sharp contrast to the broader lamb category, where volume remained essentially flat.
Domestic lamb's growing market share suggests consumers are increasingly seeking American-produced product, even in a higher-priced environment.
Ground Lamb and Racks Lead Category Growth
Several cuts delivered standout performances during the quarter.
Racks (rib roast) were the clear category leader, generating an 18.4% increase in dollar sales during Q1 and accounting for nearly half of the category's overall dollar growth.
Ground lamb continued its multi-year growth trajectory, posting a 12.0% increase in dollar sales despite a decline in pounds sold. Demand remains exceptionally strong, with ground lamb reaching a new weekly sales record of $1.68 million during January.
Other notable winners included:
Ingredient cuts (+15.0% dollar sales)
Whole leg (+12.8%)
Blade chops (+10.2%)
Ingredient cuts were especially noteworthy, recording a remarkable 29.3% increase in volume sales compared with Q1 2025.
Regional Growth Remains Broad-Based
Every major U.S. region recorded dollar growth during Q1.
Leading regions included:
South Central: +17.2%
Southeast: +14.0%
Plains: +13.4%
The South Central and Plains regions also posted meaningful volume growth, demonstrating that consumer demand remains strong in several developing lamb markets.
Houston Continues Its Rise
Among major metropolitan markets, Houston remains one of the industry's strongest growth stories.
Q1 dollar sales surged 20.6% year-over-year, while pounds sold increased 12.8%—one of only two major markets to post volume gains.
Seattle also delivered impressive results, with dollar sales up 14.3% and volume increasing 4.9%.
Meanwhile, traditional high-consumption markets such as San Francisco and Boston continued to generate sales growth but experienced significant declines in volume, reflecting the effects of higher prices.
Holiday Performance: Easter Strong, Christmas Mixed
The report highlights the continued importance of seasonal demand.
Easter remains the largest selling period for lamb, and Easter 2025 was the strongest Easter performance on record. Christmas 2025, however, produced mixed results. Dollar sales matched the previous year, but volume declined noticeably.
As the quarter closed, sales activity was already building in anticipation of Easter 2026, positioning the industry for another important holiday selling season.
Looking Ahead
The Q1 results reinforce a trend that has defined the lamb category for much of the past two years: consumers continue to value lamb enough to absorb higher prices.
The challenge for the industry moving forward will be sustaining demand while navigating elevated retail pricing and broader economic uncertainty.
Still, the continued growth of domestic lamb, record-setting ground lamb performance, and expanding opportunities in markets for example, Houston and Seattle provide strong signals that the category's long-term fundamentals remain healthy.
Bottom Line: Lamb continues to outperform expectations at retail. While higher prices are driving much of the category's dollar growth, domestic lamb is capturing market share, innovative cuts are finding new consumers, and key growth markets are delivering encouraging volume gains.