This study indicates that food manufacturers could seize the opportunity to enhance consumer perception of their products by opting for cage-free eggs. Numerous food companies have already committed to transitioning their egg supply. For instance, Nestle announced in 2015 that all eggs used in its U.S. products would come from cage-free hens by 2020. Other major players, 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. Together, these commitments from manufacturers and retailers represent approximately 70% of U.S. egg demand, according to the U.S. Department of Agriculture, while only about 10% of eggs sold in the U.S. are currently cage-free.
This gap between supply and demand may pose challenges. While advocates celebrate these pledges as a win for improved animal welfare, the chicken industry has cautioned that raising chickens in cage-free conditions incurs higher costs—around $40 per bird. Additionally, as the majority of consumers still choose the least expensive eggs at grocery stores, egg producers who transition to cage-free options face stiff competition from suppliers of cheaper eggs from caged hens.
In the long run, however, these commitments from the food industry are likely to render the move to cage-free eggs profitable for producers. McDonald’s alone accounts for 3% of all eggs consumed in the United States, creating a need for a reliable supply chain. Meanwhile, some brands are already leveraging humane egg production as a distinguishing factor and a mark of quality, such as Sir Kensington’s, a New York-based condiment maker recently acquired by Unilever.
Moreover, there is a growing awareness of the nutritional benefits associated with cage-free eggs, including their higher levels of calcium citrate, which may help alleviate constipation. As consumer preferences shift towards products perceived as more humane and health-conscious, the demand for cage-free eggs may further rise, potentially benefiting both producers and consumers in the long term.