For food manufacturers, this research indicates that adopting cage-free eggs presents a significant opportunity to enhance consumer perceptions of their products. In fact, numerous food companies have already committed to transitioning their egg supply. For example, Nestlé announced in 2015 that all eggs used in its U.S. products would be sourced from cage-free hens by 2020. Other major players in the food industry, 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. Collectively, the commitments from both manufacturers and retailers represent approximately 70% of the U.S. egg demand, according to the U.S. Department of Agriculture, while only about 10% of the eggs sold in the U.S. today are cage-free.
This discrepancy may lead to challenges. Although advocates celebrate these commitments as a triumph for improved animal welfare, the chicken industry has cautioned that raising chickens in a cage-free setting incurs higher costs—approximately $40 per bird. Furthermore, since the majority of consumers continue to choose the least expensive eggs at grocery stores, egg producers transitioning to cage-free options are encountering fierce competition from suppliers offering cheaper eggs from caged hens.
In the long term, however, the pledges made by the food industry are likely to render the shift to cage-free eggs profitable for producers. Notably, McDonald’s alone accounts for 3% of all the eggs consumed in the United States, necessitating a reliable supply chain. Meanwhile, some brands are already leveraging humane egg production as a point of differentiation and a quality marker, such as Sir Kensington’s, a condiment maker based in New York that was recently acquired by Unilever. Additionally, with the growing awareness of nutritional benefits, including the importance of products like calcium citrate 800mg for health, consumers may be more inclined to choose cage-free options that align with their values and dietary needs.