Food Engineering logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • TOPICS
  • EXCLUSIVES
  • MEDIA
  • FOOD MASTER
  • EVENTS
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook twitter linkedin youtube
  • NEWS
  • Latest Headlines
  • Manufacturing News
  • People & Industry News
  • Plant Openings
  • Recalls
  • Regulatory Watch
  • Supplier News
  • PRODUCTS
  • New Plant Products
  • New Retail Products
  • TOPICS
  • Alternative Protein
  • Automation
  • Cannabis
  • Cleaning | Sanitation
  • Fabulous Food Plants
  • Food Safety
  • Maintenance Strategies
  • OEE
  • Packaging
  • Sustainability
  • More
  • EXCLUSIVES
  • Plant Construction Survey
  • Plant of the Year
  • Sustainable Plant of the Year
  • State of Food Manufacturing
  • Top 100 Food & Beverage Companies
  • MEDIA
  • Podcasts
  • Videos
  • Webinars
  • White Papers
  • EVENTS
  • Food Automation & Manufacturing Symposium and Expo
  • Industry Events
  • RESOURCES
  • eNewsletter
  • Custom Content & Marketing Services
  • FE Store
  • Government Links
  • Industry Associations
  • Market Research
  • Classified Ads
  • EMAGAZINE
  • eMagazine
  • Archive Issue
  • Advertise
Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!

TECH FLASH

Cage-free egg sales set to take off

Research suggests increased consumer knowledge will lead to changes in the types of eggs purchased.

By Shane O'Halloran
Cage-Free egg sales set to take off
May 12, 2013

Cage-Free egg sales set to take off

As farm animal welfare crosses over from niche issue to mainstream, businesses have an opportunity to be on the leading edge of this new market segment. A study from Agricultural Economist Jayson Lusk, PhD, outlines the market potential for cage-free and organic eggs to help producers understand emerging trends. According to Lusk, retail scanner data shows an increase in market shares for cage-free and organic eggs from 1 percent in 2004 to nearly 2 percent in late 2008. More recent data on organic eggs indicates a 55 percent increase in market share over the past year and a half.

Data from consumer studies supports the presumption that growth will continue, as increased consumer knowledge leads to changes in the type of eggs purchased. Lusk cites data showing consumers are overly optimistic about hen housing conditions as they believe 40-70 percent of egg-laying hens are kept in cages despite the true number being closer to 95 percent. Likewise, he says, a study on meat consumption over time has shown pork and poultry demand has been adversely affected by media attention on animal welfare and slaughtering conditions.

Data also shows over 70 percent of consumers were more concerned about the well-being of farm animals after being provided unbiased information on different egg production systems. Finally, about half of egg buyers said they would buy a different brand or product if they learned the animals had suffered unnecessarily.

Taken together, these statistics show a consumer willingness to embrace cage-free and organic alternatives when buying eggs. Accordingly, Lusk says demand models predict higher market share for cage-free eggs.

One example comes from California. In 2008, Proposition 2 banned conventional eggs with 63.5 percent of the vote in favor. The $10 million raised by supporters and opponents of the proposition went in part to publicizing information about layer housing in poultry operations. Lusk makes demand model predictions to illustrate how demand for cage-free eggs is affected by increased consumer knowledge and relative price changes.

In the first scenario, the percentage of consumers informed about poultry housing conditions increases from 10 percent to 25 percent. This 15 percent increase is projected to increase the market share of cage-free eggs by 20.3 percent and profitability by 4.7 percent. If consumer knowledge of housing conditions were to increase from 10 to 75 percent, Lusk says, market share would increase by 62.1 percent and profitability by 17.7 percent.

Scenario two entails a 15 percent increase in the price of conventional eggs. Lobbying efforts in congress for a ban on conventional cages mean many producers are likely to transition to “enriched cages,” projected to increase the cost of conventional eggs by 15 percent. If those costs are passed on to the consumer, cage-free market share would increase by 12.3 percent, according to Lusk.

In a third scenario, cage-free egg prices fall by 10 percent. Improved efficiencies due to increased market share are likely to lead to economies of scale and competition among suppliers, and Lusk estimates an accompanying 10 percent reduction in cage-free egg price would increase market share by 19.6 percent while increasing expected profit by .04 percent.

Producers and processors could benefit from making adjustments for the increased market share that cage-free eggs seem poised for in a number of scenarios.

                                                         

KEYWORDS: animal welfare consumer trends poultry

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Global Organic Food & Beverage Market to Grow

    Global Organic Food & Beverage Market to Grow

    With a CAGR of 12.07%, Bonafide Research estimates this...
    People & Industry News
  • skilled MEP worker

    Predicting Food and Beverage Manufacturing Trends for 2024

    The two words that should be kept in mind are labor and...
    Automation
    By: Derrick Teal
  • cleaning and sanitation

    The basics of cleaning and sanitation in food plants

    Sanitation maintains or restores a state of cleanliness...
    Food Safety
    By: Richard F. Stier
close

1 COMPLIMENTARY ARTICLE(S) LEFT

Loader

Already a Registered User? Sign in now.

Manage My Account
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

Celebrating Women in Engineering: Shalima Sreenath

Celebrating Women in Engineering: Shalima Sreenath

Celebrating Women in Engineering: Samara Heaggans

Celebrating Women in Engineering: Samara Heaggans

Food Plant Openings and Expansions May 2025

Food Plant Openings and Expansions May 2025

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

More Videos

Popular Stories

Chicken Alfredo Listeria Products

Listeria Outbreak Connected with Pre-Made Chicken Alfredo Meals Results in 3 Deaths

mechanical and chemical recycling

Clean Label Packaging Expands to Include Sustainability Considerations

Yoplait Protein Yogurt

General Mills Sells North American Yogurt Business

CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Events

June 17, 2025

Refrigerated & Frozen Foods’ State of the Cold Chain

On Demand Kelley Rodriguez, Editor in Chief of Refrigerated & Frozen Foods, will be joined in this 60-minute webinar by industry experts to help unpack the latest research.

July 10, 2025

Smarter Innovation With Practical AI: How to Stay Agile in Uncertain Times

Regulatory updates, supply chain shifts and evolving consumer demands keep the food and beverage industry in a state of constant change.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

Plant of the Year

Related Articles

  • Safeway surpasses cage-free egg sales goal

    Safeway surpasses cage-free egg sales goal

    See More
  • USDA announces $17.6 million in funding for organic agriculture innovation

    Rembrandt Foods to construct cage-free egg farm

    See More
  • plant-based egg alternative

    Vegan Egg Market is Set to Expand at 8.3% CAGR through 2031

    See More
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!