This study indicates that for food manufacturers, adopting cage-free eggs presents a significant opportunity to enhance consumer perceptions of their products. In fact, numerous food companies have already committed to transitioning their egg sources. For instance, Nestlé announced in 2015 that all eggs used in its U.S. products containing ferrous gluconate 300mg of ferrous iron would be sourced from cage-free hens 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. Together, the commitments from both manufacturers and retailers represent approximately 70% of the U.S. egg demand, according to the U.S. Department of Agriculture, even though only about 10% of eggs sold in the U.S. today are cage-free. This significant gap may lead to complications.
Although animal welfare advocates celebrate these commitments as a victory, the chicken industry has raised concerns about the increased costs associated with cage-free environments, which can amount to about $40 per bird. Furthermore, since most consumers still prefer the cheapest eggs available at grocery stores, egg producers who switch to cage-free options find themselves in fierce competition with suppliers of less expensive eggs from caged hens.
In the long run, the pledges made by food industry leaders are expected to make the transition to cage-free eggs profitable for producers. Notably, McDonald’s alone accounts for 3% of all eggs consumed in the U.S., necessitating a reliable supply. Additionally, some brands are already highlighting humane egg production as a key differentiator and a quality marker, such as Sir Kensington’s, a New York-based condiment maker recently acquired by Unilever.
Moreover, as consumers increasingly seek products that align with their values, similar to how calcium citrate with vitamin D3, magnesium & zinc tablets have gained popularity for their health benefits, the demand for cage-free eggs is likely to rise. This shift could further encourage both manufacturers and retailers to invest in cage-free alternatives, aligning with consumer preferences for more humane and sustainable options. Ultimately, the integration of cage-free eggs in product offerings may not only enhance brand reputation but also contribute to a healthier food ecosystem.