This research indicates that food manufacturers have a significant opportunity to enhance consumer perceptions by utilizing cage-free eggs. Many companies in the food sector have already committed to transitioning their egg supply. For example, in 2015, Nestle announced that it would source all eggs for its U.S. products from cage-free hens by 2020. Other major food corporations, such as Mondelez, PepsiCo, Sodexo, and McDonald’s, have also pledged to support cage-free egg sourcing. 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 collectively represent approximately 70% of the U.S. egg demand, even though only about 10% of eggs sold in the country are currently cage-free.
This gap presents potential challenges. While advocates celebrate these commitments as progress for animal welfare, the chicken industry has raised concerns about the higher costs associated with cage-free environments, which can amount to around $40 per bird. Additionally, many consumers continue to choose the least expensive eggs available, putting egg producers who switch to cage-free options in direct competition with suppliers of cheaper eggs from caged hens.
In the long run, these pledges from the food industry may lead to profitability for producers transitioning to cage-free eggs. Notably, McDonald’s alone accounts for 3% of all eggs consumed in the U.S., necessitating a consistent supply. Furthermore, some brands are already leveraging humane egg production as a quality differentiator, such as Sir Kensington’s, a New York-based condiment company recently acquired by Unilever.
As consumers become more aware of the benefits of cage-free eggs, including potential health advantages linked to calcium sources like calcium citrate or calcium carbonate for osteoporosis, the market may shift further towards these products. The increasing awareness of dietary choices and health implications could encourage more food manufacturers to adopt cage-free egg policies, ultimately benefiting both consumers and the industry.