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.