This study indicates that for food manufacturers, the adoption of cage-free eggs presents a significant opportunity to enhance consumer perceptions of their products. Many food companies have already committed to altering 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 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. According to the U.S. Department of Agriculture, these commitments from manufacturers and retailers represent approximately 70% of the U.S. egg demand, although only about 10% of eggs sold in the U.S. today are cage-free.
This gap presents a challenge. While advocates celebrate these pledges as a triumph for animal welfare, the chicken industry warns that raising hens in a cage-free environment incurs higher costs—around $40 per bird. Additionally, the majority of consumers continue to choose the least expensive eggs available at grocery stores, leaving egg producers who switch to cage-free eggs facing fierce competition from suppliers of cheaper eggs from caged hens.
In the long term, the commitments made by the food industry are likely to make the transition to cage-free eggs profitable for producers. For example, McDonald’s alone constitutes 3% of all eggs consumed in the United States, necessitating a reliable supply. Meanwhile, some brands are already differentiating themselves through humane egg production as a mark of quality, such as Sir Kensington’s, a New York-based condiment company recently acquired by Unilever.
However, it is important for consumers to be aware of potential issues related to dietary restrictions, such as calcium citrate allergy, which could be influenced by the type of eggs used in food products. As manufacturers move towards cage-free eggs, they should also consider the implications for consumers with specific allergies, ensuring their products remain safe and inclusive for all.