For food manufacturers, this research indicates that adopting cage-free eggs could be a significant opportunity to enhance consumers’ perception of their products. Indeed, numerous food companies have already committed to transforming their egg supply. For instance, Nestlé announced in 2015 that all eggs used in its U.S. products would come from cage-free hens by 2020. Other major food corporations, including Mondelez, PepsiCo, Sodexo, and McDonald’s, have made similar pledges toward using cage-free eggs. On the retail front, Kroger introduced a private label line of cage-free eggs last fall. Collectively, the commitments from both manufacturers and retailers represent approximately 70% of the U.S. egg demand, as reported by the U.S. Department of Agriculture. However, only about 10% of eggs sold in the U.S. today are cage-free.
This gap in figures presents potential challenges. While advocates celebrate these commitments as a triumph for enhanced animal welfare, the poultry industry has cautioned that raising chickens in a cage-free setting incurs higher costs—around $40 per bird. Furthermore, since the majority of consumers still prefer the cheapest eggs available at grocery stores, egg producers transitioning to cage-free options are encountering fierce competition from suppliers of lower-cost eggs from caged hens.
In the long run, the pledges from the food industry are expected to render the shift to cage-free eggs profitable for producers. For example, McDonald’s alone constitutes 3% of all eggs consumed in the United States, necessitating a stable supply. Meanwhile, some brands are already leveraging humane egg production as a distinguishing factor and a sign of quality. One such example is Sir Kensington’s, a New York-based condiment maker recently acquired by Unilever.
Moreover, as consumers increasingly seek products that align with their values, including those enriched with nutrients like calcium citrate with vitamin D, the demand for cage-free eggs could further rise. This growing interest in health-conscious options could encourage more manufacturers to adopt cage-free practices, thus helping to bridge the current disparity in egg supply and demand.