Egg Prices, Bird Flu, and the Changing Egg Industry: What Consumers Should Know
There’s a lot going on in the egg industry. In this blog, we’re diving deep into recent trends to answer your questions about why eggs have been so expensive––and sometimes even hard to get––and what is going on with bird flu and evolving regulations shaping the egg market.
Understanding these shifts will help consumers, farmers, and policymakers navigate short-term disruptions and be aware of larger, structural challenges that signal a need for further reform.
Bird Flu’s Impact on the Egg Supply
The current H5N1 avian flu outbreak is among the worst in U.S. history, affecting nearly 150 million poultry since early 2022. The virus has spread across all 50 states and Puerto Rico. In just November and December 2024, over 17.2 million egg-laying hens were lost, making up half of the year’s total losses.
What makes this outbreak particularly concerning is its spread beyond poultry to dairy cows and farm workers. While human cases remain rare, experts at the CDC and WHO warn that the virus’s continued presence in mammals increases the risk of mutations that could enable human-to-human transmission. There have been 64 human cases in the United States so far, with one confirmed death.
Surveillance of the virus is ongoing, but some epidemiologists have criticized the lack of mandatory nationwide testing for livestock, which could leave significant gaps in our understanding of how the virus spreads.
In response, the USDA has worked with egg producers to contain outbreaks and prevent further disruptions. However, some public health officials have noted delays in government response efforts, particularly in the early months of the outbreak. Scientists have raised concerns about the slow rollout of testing in dairy herds and the reluctance of some state officials to cooperate with federal agencies. While containment measures—such as culling infected flocks—are necessary, experts argue that stronger disease prevention efforts are essential to reduce the frequency and severity of these outbreaks in the future.
Egg Prices: What’s Driving the Cost Increases?
With millions of hens lost to bird flu, egg prices have risen sharply. By late 2024, the average price for a dozen large eggs had reached $4.15, reflecting a 37 percent increase from the previous year. While supply shortages from the flu outbreak have played a role, other factors—including industry pricing practices and market consolidation—are also at play.
Recent litigation has revealed patterns of price manipulation within the egg industry. In 2023, a federal jury found several of the country’s largest egg producers, including Cal-Maine Foods, guilty of price-fixing and ordered them to pay $17.7 million in damages. While this lawsuit covered pricing practices in the early 2000s, price-fixing has been a recurring issue in the animal protein industry; recent investigations into chicken and pork price manipulation have uncovered similar practices.
Some shoppers have raised concerns on social media that state laws that require cage-free production are to blame for rising egg costs. But this doesn’t line up with market realities. With thousands of major retailers and restaurants switching to use only cage-free eggs––including giants like McDonald’s and Costco––the industry has largely adapted to these new standards.
Recent attempts to reverse cage-free requirements have gained little traction. In Colorado, a bill to repeal the state's cage-free law failed in its first committee hearing this January, with industry representatives warning that such reversals could actually increase prices by disrupting established supply chains. Similar efforts in Michigan face strong opposition from egg producers who have already invested in facility upgrades and worry about unfair competition if conventional eggs were reintroduced to the market.
The Future of Cage-Free Laws
Ten states have implemented cage-free laws, a decisive move toward more humane production standards that reflects both changing consumer preferences and growing recognition of food safety concerns associated with conventional production methods.
Cage-free systems offer clear long-term benefits, including improved animal welfare, lower rates of disease transmission, and safer production standards. According to the Center for Food Safety, cage conditions can compromise food safety. Hens in battery cages are “often covered in feces from birds in overhead cages, and are prone to drowning in manure trenches”' leading to increased contamination risks. As the industry adapts, supporting farmers in their transition to cage-free is a more effective solution than repealing regulations as well as a step toward a more responsible food system.
The transition to cage-free egg production represents one of the most significant shifts in the industry in decades. Approximately 40 percent of U.S. eggs are now produced in cage-free systems.
Alternatives to Eggs Amid Rising Prices
As egg prices continue to fluctuate, many consumers are looking for alternatives. Plant-based egg substitutes—such as JUST Egg, tofu scrambles, and chickpea-based baking replacements—have gained popularity in recent years. Sales of plant-based egg alternatives grew by 30 percent in 2024, reflecting increased consumer interest in affordable and sustainable options. Consumers have reported seeing signage in the egg aisle providing ideas for baking with egg-alternatives.
Beyond plant-based options, some companies are working on lab-grown eggs, which could provide another sustainable alternative in the future. While these technologies are still in development, early prototypes show promise in replicating the taste and functionality of eggs while reducing environmental impact.
Looking Ahead
With egg prices projected to rise another 20 percent in 2025, consumers are under increasing financial pressure. However, this disruption also creates momentum for addressing systemic issues in food production, regulation, and market fairness.
Key priorities for reform should include:
Strengthening antitrust enforcement to prevent price-fixing and corporate manipulation of supply chains.
Separating regulatory oversight from industry promotion to ensure food safety policies prioritize public health over industry profits.
Accelerating the transition to more resilient and humane production methods, including improved biosecurity to reduce the risk of future outbreaks.
Implementing robust disease surveillance systems to provide early detection and response for animal-borne illnesses.
Supporting alternative protein development as a way to diversify food security and reduce reliance on fragile industrial farming systems.
While short-term supply challenges remain, the push for a more transparent, accountable, and sustainable egg industry continues.