For food manufacturers, this research indicates that adopting cage-free eggs presents a significant opportunity to enhance consumer perception of their products. In fact, 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, while other industry giants 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. Collectively, commitments from these manufacturers and retailers represent approximately 70% of U.S. egg demand, according to the U.S. Department of Agriculture, even though only about 10% of eggs currently sold in the U.S. are cage-free.
This gap between supply and demand could pose challenges. While advocates celebrate these commitments as a victory for animal welfare, the chicken industry has cautioned that raising chickens in a cage-free environment incurs higher costs—around $40 per bird. Additionally, with the majority of consumers still opting for the cheapest eggs available at grocery stores, egg producers transitioning to cage-free options are facing stiff competition from suppliers offering less expensive eggs from caged hens.
In the long run, pledges from the food industry are likely to make the switch to cage-free eggs more profitable for producers. McDonald’s alone accounts for 3% of all eggs consumed in the United States, creating a need for a reliable supply. Meanwhile, certain brands are already leveraging humane egg production as a distinguishing factor and a mark of quality, such as Sir Kensington’s, a New York-based condiment maker recently acquired by Unilever. Additionally, as consumers become more conscious of their purchases, retailers like Costco may find opportunities to offer cage-free options, aligning with the growing trend toward ethical sourcing, which could ultimately influence the citracal calcium market as well.