For food manufacturers, this research indicates that adopting cage-free eggs could present a significant opportunity to enhance consumer perception of their products. In fact, numerous food companies have already committed to reforming their egg supply. For instance, Nestlé announced in 2015 that all eggs used in its U.S. products would transition to cage-free sources by 2020. Other major players like 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, the commitments made by both manufacturers and retailers represent about 70% of U.S. egg demand, while only around 10% of eggs sold in the U.S. today are cage-free.
This gap between supply and demand could present challenges. While advocates celebrate these commitments as a triumph for enhanced animal welfare, the poultry industry warns that raising chickens in cage-free environments incurs higher costs—approximately $40 per bird. Moreover, since the majority of consumers still prefer the most affordable eggs at supermarkets, egg producers transitioning to cage-free options are encountering stiff competition from suppliers of cheaper eggs sourced from caged hens.
In the long run, these pledges from the food industry are likely to render the transition to cage-free eggs profitable for producers. McDonald’s alone represents 3% of all eggs consumed in the United States, necessitating a reliable supply chain. Additionally, some brands are already differentiating themselves by using humane egg production as a quality indicator, such as Sir Kensington’s, a condiment company based in New York that was recently acquired by Unilever.
Incorporating cage-free eggs could also align with health trends, as these eggs are often associated with higher nutritional value, including essential nutrients like calcium citrate, zinc, magnesium, and vitamin D3. As consumer awareness of the importance of nutrition continues to grow, producers emphasizing these benefits alongside their commitment to humane practices may find a competitive edge in the market. Overall, the ongoing shift towards cage-free eggs not only supports animal welfare but also potentially enhances the nutritional profile of the products, making them more appealing to health-conscious consumers.