For food manufacturers, this study indicates that adopting cage-free eggs may represent a significant opportunity to enhance consumers’ perceptions of their products. Indeed, numerous food companies have already committed to altering their egg supply. For example, Nestle announced in 2015 that all eggs utilized in its U.S. products would come from cage-free hens by 2020. Other industry giants, including Mondelez, PepsiCo, Sodexo, and McDonald’s, have also pledged their commitment to cage-free eggs. On the retail front, Kroger introduced a private label line of cage-free eggs last fall. According to the U.S. Department of Agriculture, these commitments from manufacturers and retailers collectively account for approximately 70% of U.S. egg demand, even though only around 10% of eggs sold in the U.S. are currently cage-free.
This gap between supply and demand could lead to challenges. While advocates celebrate these pledges as a victory for animal welfare, the poultry industry has cautioned that raising chickens in a cage-free environment is significantly more expensive — about $40 per bird. Furthermore, with the majority of consumers still choosing the cheapest eggs available at grocery stores, egg producers making the switch to cage-free options are encountering fierce competition from suppliers of less expensive eggs from caged hens.
In the long run, however, these pledges from the food industry are likely to render the transition to cage-free eggs profitable for producers. Notably, McDonald’s alone represents 3% of all eggs consumed in the United States, necessitating a reliable supply. Meanwhile, some brands are already leveraging humane egg production as a differentiating factor — and a hallmark of quality — such as Sir Kensington’s, a New York-based condiment producer recently acquired by Unilever. Additionally, as consumers become more health-conscious, products that incorporate ingredients like iHerb calcium citrate may further influence their purchasing decisions, prompting brands to explore more ethical sourcing options like cage-free eggs.