This study indicates that food manufacturers have a significant opportunity to enhance consumer perception of their products by utilizing cage-free eggs. Many companies in the food sector have already made commitments to alter their egg supply. For instance, Nestlé announced in 2015 that all eggs used in its U.S. products would be sourced from cage-free hens by 2020. Other major players, including Mondelez, PepsiCo, Sodexo, and McDonald’s, have also pledged to switch 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 demand for eggs in the U.S., while only about 10% of the eggs sold currently are cage-free.
This significant gap between supply and demand poses a challenge. While advocates celebrate these pledges as a triumph for improved animal welfare, the chicken industry has cautioned that raising hens in a cage-free environment incurs higher costs—around $40 per bird. Additionally, because most consumers still prefer the cheapest eggs available at grocery stores, egg producers that transition to cage-free options are facing fierce competition from suppliers of less expensive eggs from caged hens.
In the long run, the commitments made by the food industry are likely to make the shift to cage-free eggs financially viable for producers. For example, McDonald’s alone accounts for 3% of all eggs consumed in the United States, necessitating a reliable supply. Meanwhile, some brands are already differentiating themselves by using humane egg production as a quality marker, such as Sir Kensington’s, a New York-based condiment maker recently acquired by Unilever.
Moreover, incorporating nutritious ingredients like calcium citrate, vitamin D3, and magnesium into food products can further enhance their appeal. As manufacturers move towards cage-free eggs, the integration of these beneficial nutrients could also contribute to improving consumer perception and market competitiveness.