The increase in overall demand for eggs and the growing preference for cage-free and other specialty products are intensifying the impact of reduced supply caused by highly pathogenic avian influenza (HPAI), according to a new CoBank report.
The combination of the factors is prolonging the timeline for bringing egg supply and demand closer together, which is keeping egg prices elevated, explained CoBank Animal Protein Economist Brian Earnest.
Per capita consumption of eggs has consistently grown for almost the last decade. According to the U.S. Department of Agriculture (USDA), U.S. consumer demand for eggs has consistently grown over the last few years, despite price increases, and 2025’s per capita egg consumption is expected to continue that trend.
“While seasonality remains an influencing factor, egg use has grown dramatically over the last 20 years. Eggs have become a staple item for innovation in quick-service restaurant entrees, and marketing trends like the emergence of all-day breakfast have significantly boosted egg demand,” stated Earnest.
Not only is overall demand increasing, but demand for cage-free eggs has grown and housing laws and customer commitments continue to hold steady, which makes supply challenges more complex.
Even though the cage-free egg supply has continued to grow, more birds will need to be housed in cage-free environments to meet customer pledges and cage-free housing law requirements. Approximately 40% of table egg layers in the U.S. are housed in cage-free production systems and nine U.S. states have implemented cage-free housing laws as of February 2025.
HPAI still the main concern
While demand plays a role, the current inflated egg prices are primarily due to supply challenges caused by HPAI. Earnest said higher egg prices are expected to last further into 2025 due to reduced production and egg promotions tied to the Easter holiday.
Additionally, the disease has become a year-round threat to egg producers, versus what was previously thought to be a seasonal issue due to migration.
“The last widespread outbreak of HPAI in 2015 was largely seasonal with most cases occurring during the winter and spring migration periods for wild birds,” said Earnest. “That seasonality appears to be gone.”
