The world’s emerging markets hold the most opportunity for red meat sector growth according a new report by Rabobank.

The report says consumers in the high-value EU and US markets have traded down to cheaper meat cuts and dropped back on consumption.

Despite this, global sheep meat consumption is expected to increase 21% by the end of the decade, and Rabobank senior analyst Hayley Moynihan says while much of this growth will come in less established markets, they shouldn't be relied upon too heavily.

“We’ve got some very good quota access into the US and into Europe in particular for both beef and sheep meat respectively so they are high value markets.

"I think emerging markets provide the opportunity to lift the overall value of New Zealand’s meat exports by capitalising on that volume and value growth that enables a greater return over time.”

Beef consumption is expected to increase 15% by 2019.