Several aspects of the water‐holding capacity of fresh meat are discussed. After some compositional and structural characteristics of muscle are outlined, special attention is paid to post mortem muscle physiology and related mechanisms of fluid loss from meat. Finally, determinants of water‐holding capacity (physiological factors, rearing conditions and processing factors) are described. From this review it can be concluded that the water‐holding capacity and the subsequent drip loss are complex attributes of meat which are influenced by factors in the whole meat production chain. However, the effects of many factors, such as rearing conditions, administration of growth promoters, feed, and ageing of meat, are still not clear. To be able to optimize and control the water‐holding capacity of meat, it is important to have information about the effects of each processing factor and the basic mechanisms involved. Once these mechanisms are known, the influence of biological and technological factors will be more predictable and more easy to control. Veterinarians can play an important role in this.