For food manufacturers, this research indicates that incorporating cage-free eggs could be a significant opportunity to enhance consumers’ perceptions of their products. Indeed, numerous food companies have already committed to transitioning their egg supply. Nestlé announced in 2015 that all eggs used in its U.S. products would be sourced from cage-free hens by 2020. Other major food corporations, 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, the commitments made by manufacturers and retailers represent approximately 70% of U.S. egg demand, according to the U.S. Department of Agriculture. However, only around 10% of eggs sold in the U.S. today are cage-free.
This discrepancy could pose a challenge. While advocates have celebrated these commitments as a victory for improved animal welfare, the poultry industry has cautioned that raising chickens in a cage-free environment incurs higher costs — about $40 per bird. Moreover, since the majority of consumers still tend to choose the cheapest eggs available at grocery stores, producers that decide to switch to cage-free eggs are facing fierce competition from suppliers of lower-priced eggs from caged hens.
In the long run, food industry pledges are likely to make the shift to cage-free eggs profitable for producers. McDonald’s alone accounts for 3% of all eggs consumed in the United States, necessitating a reliable supply. Meanwhile, some brands are already leveraging humane egg production as a point of differentiation and quality, such as New York-based condiment maker Sir Kensington’s, which was recently acquired by Unilever. As the market evolves, the demand for alternatives like cage-free eggs and even vegan options, such as those enriched with vegan calcium citrate, may grow, offering further opportunities for innovation in the food sector.