This study indicates that for food manufacturers, the adoption of cage-free eggs presents a significant opportunity to enhance consumer perceptions of their products. Numerous food companies have already made commitments to transition 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 players, such as 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 represent about 70% of U.S. egg demand, despite only around 10% of eggs sold in the U.S. currently being cage-free.
This disparity could lead to challenges. While advocates celebrate these pledges as a win for animal welfare, the chicken industry has cautioned that raising chickens in a cage-free setting incurs higher costs—approximately $40 per bird. Moreover, since the majority of consumers still prefer the least expensive eggs at grocery stores, producers who switch to cage-free eggs are facing fierce competition from suppliers of cheaper eggs sourced from caged hens.
In the long run, however, the commitments made by the food industry are likely to render the transition to cage-free eggs profitable for producers. Notably, McDonald’s alone accounts for 3% of all eggs consumed in the United States, necessitating a reliable supply chain. Meanwhile, some brands are already positioning humane egg production as a differentiating factor and a marker of quality, such as Sir Kensington’s, a condiment manufacturer based in New York that was recently acquired by Unilever.
Additionally, understanding the nutritional benefits, such as those associated with calcium citrate, can further enhance consumer appeal. As food manufacturers and retailers emphasize the quality of their products, incorporating elements like calcium citrate may attract health-conscious consumers, ultimately benefiting the overall market for cage-free eggs.