Why Are Egg Prices So High? Understanding the Surge in Egg Costs.

Have you recently walked into the grocery store to find the egg section half empty or barely stocked at all? You’re not alone. Many shoppers are facing empty shelves, and when eggs are available, they’re shockingly expensive – $7.09 per dozen in January 2025, to be exact. To make matters worse, some stores, like Aldi, have even imposed limits on purchases, allowing customers to buy no more than two cartons each. So, what’s going on? Why is there an egg shortage, and why are prices so high?

Eggs are a staple in countless households and industries, from restaurants to packaged food manufacturers. But in 2025, the cost of eggs has surged dramatically, leaving both consumers and businesses scrambling to understand the root causes of this sharp increase. What’s driving the price hikes, and how is it impacting the broader food industry? In this article, we’ll explore the key factors behind the soaring cost of eggs and discuss how it’s affecting consumers and businesses across the food sector.

Egg Production: Key Figures and Producers 

Global Egg Production

Egg production is a major industry worldwide, with several countries contributing significantly to global supply. The U.S. is one of the largest producers of eggs, but other key contributors include China, India, and Mexico. Together, these countries account for a substantial portion of the world’s egg production. Globally, the egg industry is valued at over $200 billion, driven by the growing demand for eggs as an affordable and versatile protein source. The industry’s growth is also influenced by shifting consumer preferences towards more sustainable and ethical practices, prompting increased demand for cage-free and organic eggs. This trend has led many producers to invest in more innovative farming techniques to meet the rising demand for higher welfare products.

U.S. Egg Production

In 2023, the U.S. produced approximately 100 billion eggs, with Iowa, Ohio, and Pennsylvania being the top egg-producing states. Iowa alone produces about one-fifth of the nation’s total eggs, largely due to its favorable farming infrastructure and ideal conditions for raising hens. The state’s extensive farmland and established agricultural systems allow it to maintain its status as the leader in egg production. With a rapidly growing demand for both conventional and specialty eggs, such as cage-free and organic varieties, U.S. producers are adapting to meet consumer expectations while ensuring supply remains strong. This dynamic landscape has solidified the U.S.’s role as a global powerhouse in egg production, impacting domestic pricing, industry standards, and international trade.

Key Factors Behind the Skyrocketing Egg Prices

Eggs are being recalled

There has been a concerning rise in food recalls over the past year, and eggs have not been exempted. During the holiday season, certain organic eggs were recalled due to potential salmonella contamination. Earlier in the year, a major salmonella outbreak led to the recall of eggs from a poultry farm, affecting multiple brands. This increase in recalls highlights the ongoing risks associated with food safety and the need for stricter monitoring and quality control in the food production process.

The Bird Flu Crisis and Its Impact on Egg Supply

This sharp rise in egg prices is largely due to an ongoing outbreak of highly pathogenic avian influenza (AI), or bird flu. The outbreak has put significant strain on the egg supply. In fact, it has become one of the most severe AI outbreaks in U.S. history. Since mid-October 2024, nearly 25 million egg-laying hens have been culled, accounting for over 7% of total U.S. egg production. A large portion of these losses has occurred in the cage-free sector. The AI virus has spread across several key regions, including California, Missouri, and North Carolina. It has also affected other poultry species, further compounding the issue.

The U.S. Department of Agriculture (USDA) reports that over 145 million birds have been affected, making it one of the largest bird flu crises in history. As a result, egg production has dropped, leading to a supply shortage that drives up prices.

For consumers, this means paying higher prices at the grocery store. Food businesses such as restaurants and manufacturers are facing increased ingredient costs, impacting their expenses and pricing strategies. Waffle House, America’s largest breakfast chain, has responded by implementing a 50-cent surcharge per egg, instead of raising prices across the menu. This temporary surcharge addresses the surge in egg prices while minimizing broader price hikes.

Waffle House is not the only company feeling the impact of rising egg prices. Several other restaurant chains have also implemented surcharges or price adjustments in response to the bird flu crisis. Denny’s introduced a 25-cent surcharge per egg, while IHOP increased the cost of egg-based dishes by approximately 10%. Cracker Barrel added a 15-cent surcharge per egg to its menu items. These changes reflect the widespread strain the avian influenza outbreak is placing on the foodservice industry, as companies struggle to manage higher operational costs while trying to keep prices manageable for consumers.

U.S. egg prices reached an all-time high of 7.09 USD/DOZEN in January 2025. The Department of Agriculture’s price outlook predicts that egg prices will increase by about 20% in 2025, compared to a 2.2% increase for overall food prices.

Supply Chain Disruptions and Rising Transportation Costs

In addition to the avian influenza outbreak, the global supply chain disruptions that began during the COVID-19 pandemic continue to have a lingering effect. Shortages of truck drivers, labor challenges at processing plants, and logistical issues have made it difficult for eggs to reach stores and foodservice providers in a timely manner. The trucking industry is facing a significant shortage, with an estimated 80,000 truck driver vacancies in the U.S. as of 2025, leading to delays and increased transportation costs.

These supply chain disruptions, combined with rising fuel costs, have led to increased transportation expenses for egg suppliers. As a result, the price of eggs has risen, affecting both consumers and businesses alike. For the food industry, this means that restaurants, bakeries, and food manufacturers are seeing significant increases in their production costs, which may be passed on to customers. These combined factors have led to a 36.8% year-over-year increase in retail egg prices, significantly impacting both consumers and businesses.

Increased Demand for Eggs: Protein-Rich Diets

The surge in egg prices is significantly influenced by the growing demand for protein-rich diets. Eggs are a cost-effective and versatile source of high-quality protein, containing approximately 6.4 grams of protein per medium-sized egg. This nutritional profile makes them a staple in various high-protein and low-carbohydrate diets, such as ketogenic and paleo diets, which have gained popularity in recent years.

In the United States, per capita egg consumption has increased from 30.2 to 33.2 pounds per person annually, reflecting a 10% rise in demand. This uptick is partly due to the adoption of high-protein diets, with eggs serving as a primary protein source. Additionally, eggs are recognized for their digestibility, with a protein digestibility-corrected amino acid score (PDCAAS) of 1.0, indicating they provide all essential amino acids in optimal proportions.

Inflation and Rising Production Costs

Inflation is another critical factor driving up egg prices. As the cost of feed, fuel, and labor has risen, it has become more expensive for farmers to raise poultry and maintain egg production. Suppliers pass these increased production costs down the supply chain, ultimately leading to higher egg prices for consumers and businesses.

For food producers, this means that the overall cost of production has increased, making it harder to maintain profit margins. Restaurants, manufacturers, and retailers may need to adjust their pricing or find ways to absorb these costs in order to stay competitive in a market where prices continue to climb.

Egg Prices in 2025: What Can We Expect?

Looking ahead to 2025, experts expect egg prices to remain high for the foreseeable future. While pricing may stabilize by late 2025, the recovery from the bird flu crisis will take time. In addition, the supply chain challenges and inflationary pressures that have impacted egg production are unlikely to resolve quickly.

The food industry should anticipate higher costs for eggs in the short term and plan accordingly. With demand remaining high and the supply of eggs constrained, businesses may need to explore alternatives or adjust their pricing structures to accommodate these increased costs.

How to adapt?

Egg Alternatives and Innovations

As egg prices continue to soar, food manufacturers are looking for innovative solutions to cope with the rising costs and keep products affordable for consumers. Some companies are reducing the number of eggs used in their products, opting for recipes that incorporate egg alternatives like plant-based proteins or egg replacers made from ingredients such as chickpeas, tofu, or aquafaba. For instance, plant-based egg brand Eat Just has seen tremendous growth, securing significant investments to expand its alternative egg products as demand for plant-based options rises. Similarly, Follow Your Heart and The Vegg are producing plant-based egg replacements, tapping into the increasing consumer interest in cruelty-free and sustainable food options.

In addition, some brands are leveraging technology to develop egg-free alternatives. One example is JUST Egg’s collaboration with Impossible Foods, focusing on creating sustainable, high-protein, eggless breakfast solutions. Their plant-based eggs cater to health-conscious consumers seeking protein without the price hike tied to traditional eggs. Another major player, Eat Just, has partnered with Miyoko’s Creamery, which specializes in plant-based dairy, to create joint solutions that expand their egg-free offerings to more markets.

However, not all companies are raising prices for consumers. Many have instead adopted a strategy similar to “shrinkflation,” where they reduce product sizes or tweak recipes to cut back on egg usage without visibly changing the price. This practice allows them to manage costs while maintaining consumer trust. For example, bakeries such as Panera Bread and Starbucks may reduce the size of muffins or pastries that require eggs or alter recipes to use fewer eggs in cakes and dough products. Kroger and Whole Foods Market are also offering egg-free and reduced-egg versions of their store-brand products.

In the face of rising egg prices, both innovation and strategy are key for manufacturers looking to adapt to the current market challenges.

PastryStar, Clean Label and Non-GMO ingredients

For ingredient manufacturers like PastryStar, the current rise in Egg prices poses significant challenges. Companies are reassessing their strategies for sourcing raw materials, formulating products, and adjusting sales approaches to remain competitive. 

We are supporting our clients through this evolving landscape. Our dedication to innovation allows us to assist businesses in expanding their product lines beyond egg-based products. Discover our range of products and find out how we can help you craft exceptional desserts and baked goods that meet today’s demands. At PastryStar, we offer an extensive array of products designed to meet the diverse needs of the baking and culinary industries.

Our Fillings and Jams provide rich, flavorful options to enhance any pastry or dessert, from classic fruit preserves to innovative combinations. We craft our Flavors and Pastes to deliver bold, consistent tastes that transform your recipes and create unforgettable experiences. Moreover, for those seeking a glossy finish or a touch of elegance, our Glazes, Ganaches, and Fondants offer versatile solutions that elevate both the appearance and flavor of your creations. Our Pastry Mixes & Bases simplify the baking process, delivering high-quality results with ease and efficiency. Also, we provide a comprehensive range of Bakery Ingredients & Additives to support various baking needs, from improving texture to enhancing flavor profiles. Contact us to request samples and discover how PastryStar can help you innovate and meet the evolving demands of today’s market!

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