Egg Processing Market

[292 Pages Report] The egg processing market is estimated at USD 33.3 billion in 2024 and is projected to reach USD 41.9 billion by 2029, at a CAGR of 4.7% from 2024 to 2029.

The global egg processing market is influenced by various factors that shape its trajectory. Fluctuations in consumer preferences, advancements in processing technologies, and regulatory frameworks governing food safety are key determinants. Factors such as population growth, urbanization, and dietary trends also play crucial roles in defining the demand and supply dynamics within the global egg processing market.

In October 2022, a seminal study published in Frontiers in Animal Science explored the intricate landscape of consumer perceptions regarding egg processing across 14 countries, encompassing Australia, Brazil, China, India, Malaysia, Nigeria, the UK, and the US. With a comprehensive participant pool of 4,292 individuals, the research uncovered nuanced insights into attitudes toward egg production systems and hen welfare. Notably, a significant majority, comprising 76% of respondents (excluding Nigeria), preferred eggs sourced from hens not confined to cages. The study shed light on the global concern for hen welfare, which consistently emphasized avoiding suffering in the egg production process, as 72% of participants underscored. These findings provide perspectives for industry stakeholders and animal welfare advocates, offering strategic guidance in aligning with the diverse expectations of consumers.

Market players have been strategically adjusting their production practices in response to evolving consumer preferences for eggs sourced from cage-free hens. Companies such as Cal-Maine Foods and Rose Acre Farms have made significant investments in transitioning to cage-free egg production systems. Cal-Maine Foods, one of the largest egg producers in the United States, has been expanding its cage-free operations to meet the consumer demand for ethically sourced eggs. Additionally, Rose Acre Farms has pledged to transition all its hens to cage-free housing by 2026, demonstrating a commitment to aligning production practices with consumer values and emphasizing animal welfare and ethical sourcing.

Amidst the ever-evolving landscape of the egg processing industry, several ongoing trends shape its trajectory. The industry is witnessing a paradigm shift from increased demand for cage-free and organic eggs to developing innovative processing techniques that enhance product quality. Sustainability practices, traceability, and technology adoption for efficiency improvements are notable trends influencing the egg processing market. Staying abreast of these trends is crucial for industry stakeholders to make informed decisions and capitalize on emerging opportunities in this dynamic sector.

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Drivers: Widespread popularity of multi-functionality of egg products

Egg products have a wide range of functions, including whipping, thickening, and emulsification, making them essential in the food industry. In baking and confectionery, eggs play various roles such as binding, adding moisture, and acting as natural leavening agents, which contribute to the texture and flavor of baked goods. Additionally, eggs enhance the color, flavor, and richness of pasta, giving it a distinctive golden hue. Processed eggs, whites, and yolks are important functional substitutes in the growing market of plant-based alternatives. They provide thickening, gelling, and emulsification properties essential for creating the desired textures and stability in plant-based meat and dairy alternatives. Eggs also bring essential nutrients like protein and choline to plant-based products, boosting their nutritional value. With global pasta consumption reaching 16 million tons in 2020, eggs are crucial in pasta manufacturing, helping to create a smooth texture and golden appearance in the final product.

Restraints: Increase in consumer demand for ethical sourcing and animal welfare practices

Meeting ethical demands poses challenges for processors. Cage-free and organic production methods often result in higher costs due to factors such as more expensive organic feed, lower egg production from cage-free hens, and increased labor requirements. These higher costs usually lead to higher egg prices for consumers, creating a competitiveness challenge for processors, especially in price-sensitive markets. Despite these challenges, government initiatives and industry efforts are underway to address ethical concerns in egg production. Measures such as banning conventional battery cages and implementing certified cage-free programs aim to create a more level playing field for ethical egg producers. However, processors still need to innovate and find ways to balance affordability with ethical practices to meet the growing demand for ethical eggs in the marketplace. According to a May 2023 article by Food Ingredients First, cage-free egg production is experiencing widespread adoption as food corporations respond to growing concerns about animal welfare. The Cage-Free Fulfillment Report by the Open Wing Alliance reveals that 89% of companies worldwide have met their committed deadlines to transition to cage-free egg supply chains by 2022. This rapid response to consumer demand is evident in the over 2,500 global commitments, with 1,157 companies successfully transitioning to cage-free systems. Nevertheless, despite the significant progress, some companies still lag in fully transitioning, with only 4% not meeting their cage-free commitments publicly. The swift adoption of cage-free eggs reflects the increasing emphasis on ethical sourcing and animal welfare, aligning with the challenges faced by egg processors in balancing affordability with ethical production methods. As more corporations prioritize ethical considerations, the egg processing market faces the ongoing challenge of meeting consumer demands while maintaining competitiveness.

Opportunities: Use of cutting-edge technology in egg processing

The integration of advanced automation technologies in egg production presents a significant opportunity for the industry’s growth and efficiency. In Canada, where labor shortages and the transition to cage-free systems are driving forces, investments in automated packing, stacking, and palletization technologies are enhancing operational efficiency and egg quality.

For instance, adopting automated packing and stacking equipment, such as Damtech's systems, streamlines egg collection and processing, reducing labor-intensive tasks and improving productivity. Additionally, innovations like the Ovoconcept palletizing robot at Rose Valley Colony exemplify how automation can significantly increase efficiency, with the ability to palletize 10,000 eggs in just 30 minutes. These technological advancements optimize operations and improve egg quality and cleanliness, leading to fewer cracked and broken eggs. With potential return on investments as short as four to five years for equipment like the Ovoconcept robot, adopting automation offers a promising opportunity for egg processing companies to enhance efficiency, reduce costs, and meet evolving consumer demands.

According to Egg Farmers of Canada’s article "Three Cutting-edge Technologies Used in Egg Farming," published in October 2020, Canada has taken bold initiatives to advance technological capabilities within the egg processing industry. Through the adoption of cutting-edge technologies, such as advanced analytics, video monitoring systems, and renewable energy sources, Canadian egg farmers are revolutionizing their operations.

Advanced analytics systems enable farmers to meticulously monitor and regulate various factors within the barn environment, such as lighting, temperature, and feed consumption, ensuring optimal conditions for the hens. Moreover, smartphone-connected apps provide remote access for farmers to adjust settings and address potential issues promptly. Additionally, video monitoring technology allows farmers to observe their flocks remotely, enhancing animal welfare and farm management practices. Furthermore, integrating renewable energy sources, such as wind turbines, underscores Canada's commitment to sustainability, reducing environmental impact while powering farm operations.

Overall, these technological advancements signify a significant opportunity for the Canadian egg processing market to enhance efficiency, sustainability, and productivity, positioning it at the forefront of innovation in the global industry.

Challenges: Consumers misconceptions regarding risks associated with conventional and processed eggs

Consumers' perception of eggs, including processed ones, can be influenced by negative associations with cholesterol and potential salmonella risks. Despite the nutritional benefits of eggs, such as serving as a good source of protein and essential vitamins, concerns about cholesterol levels and food safety remain prevalent among some consumers. These perceptions may deter certain individuals from purchasing or consuming eggs, impacting overall demand in the egg processing market. By actively engaging in consumer education and fostering transparency throughout the supply chain, egg producers and processors can work to shift perceptions and enhance consumer trust in processed eggs. This proactive approach promotes informed consumer choices and supports the continued growth and sustainability of the egg processing market.

According to the NIH article published in August 2022 titled "Assessment of Consumers’ Perception of Chicken Eggs Consumption and Associated Health Implications in the Volta Region of Ghana," there exists a prevalent misconception linking egg consumption to increased cholesterol levels and various health risks, such as cardiovascular diseases, stroke, and diabetes. This erroneous belief contributes to a low patronage of egg intake, particularly in sub-Saharan Africa. The study revealed that despite the nutritional benefits of eggs, including affordability and desirable characteristics like deep yellow yolk, many consumers perceive egg consumption as a health risk due to concerns about cholesterol and associated health problems. Addressing these negative perceptions through comprehensive public education efforts is imperative to promote the nutritional and health benefits of egg intake and mitigate the egg processing market's challenges.

Market Ecosystem

Based on the product type, liquid egg products is estimated to account for the largest market share of the egg processing market.

In 2019, a report by WATT Poultry indicated that liquid egg products were gaining popularity. In the United States, about 30% of egg production is being processed into liquid and frozen forms to meet the demands of various sectors such as retail, food service, food manufacturing, and export industries. These products are categorized into whole egg, yolk, and albumen (egg white). Some are converted into liquid form and then dried for different final products. Liquid egg products have numerous advantages, including ease of handling and storage, as well as enhanced safety achieved through pasteurization, significantly reducing the risk of bacterial contamination. Key market contributors to the growth and expansion of this segment include Rembrandt Foods (US), Avril SCA (France), and Bouwhuis Enthoven (Netherlands), which offer a diverse range of liquid egg products.

Based on the nature of egg processing products, organic egg products is anticipated to have the highest growth rate in the egg processing market.

Organically farmed eggs contain significantly higher levels of essential elements in both the yolk and white compared to eggs from conventional cage systems. According to an article from the National Library of Medicine published in March 2023, organic eggs have about 8% more calcium in the egg white and up to 18% more in the yolk, showing consistently higher levels in both parts. Additionally, the zinc content in the yolk and in the combined yolk and white of organic eggs is over 50% higher than in cage eggs, indicating a substantial difference in the presence of this essential element. Therefore, eggs from organically raised hens have higher levels of calcium, magnesium, and zinc. This highlights the nutritional advantages of organic egg products, emphasizing their enriched elemental composition. This could strongly appeal to health-conscious consumers in the competitive egg processing market.

The Asia-Pacific market is projected to contribute the largest share of the global egg processing market.

The Asia Pacific (APAC) market is divided into Japan, China, India, Australia, New Zealand, and the Rest of Asia Pacific. According to a 2023 WATT Poultry Article, Asia's poultry and egg producers are expected to have a positive outlook. This is due to factors such as increasing income levels, urbanization, improved disease control, and the adoption of new technologies, all of which contribute to favorable long-term market conditions. However, the industry faces several challenges, including price instability, evolving welfare standards, and increasing pressure to adopt sustainable practices due to growing environmental awareness. Disease threats also persist, which requires continuous innovation and investment in biosecurity measures to safeguard poultry health and maintain market stability. These complex challenges emphasize the need for comprehensive strategies and collaboration within Asia's poultry and egg sectors.

The article also points out that more eggs are sold in bulk than through branded packaging in Asia. This reflects a change in customer preferences and market dynamics. This shift offers enterprises opportunities to take advantage of the growing demand for processed egg products such as liquid eggs, powdered eggs, and egg derivatives. By offering a variety of convenient and value-added egg products, egg processors can meet the needs of consumers and food manufacturers.

Key Market Players

Key players in this market include Cal-Maine Foods, Inc. (US), Ovobelfoods.com (India), SKMEgg.com (India), Rose Acre Farms (US), Interovo Egg Group BV (Netherlands), Avril SCA (France), Eurovo Srl (Italy), Rembrandt Foods (US), IGRECA (France), and Venky’s India (India). These players in this market are focusing on increasing their presence through expansion and collaboration. These companies have a strong presence in North America, Asia Pacific, and Europe.

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Scope of the Report

Key stakeholders

• Egg producers and suppliers
• Egg product suppliers and manufacturers
• Egg processing equipment manufacturers
• Foodservice companies
• Food safety agencies
• Importers and exporters of egg products
• Intermediary suppliers, which include traders and distributors of egg processing products
• Government and research organizations
• Associations and industry bodies:
  • Food and Drug Administration (FDA)
  • European Food Safety Authority (EFSA)
  • Animal Welfare Organizations
  • United Egg Producers (UEP)
  • United States Department of Agriculture (USDA)
  • Food Safety and Inspection Service (FSIS)
  • The Canadian Food Inspection Agency (CFIA)
  • Environmental Protection Agency (EPA)
  • Directorate-General for Health and Food Safety (DG SANTE)
  • Occupational Safety and Health Administration (OSHA)
  • Ministry of Agriculture or Department of Animal Husbandry
  • Department of Animal Husbandry and Dairying (DAHD)
  • Food Safety and Standards Authority of India (FSSAI)

Egg Processing Market:

By Product Type

• Dried Egg Products
• Liquid Egg Products
• Frozen Egg Products

By End-User Application

• Food Processing and Manufacturing
  • Processed Foods and Ready Meals
  • Bakery and Confectionery
  • Dietary Supplements
  • Others
• Foodservice
• Retail

By Nature

• Organic Egg Products
• Inorganic Egg Products

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In January 2024, Cal-Maine, Inc. is in the process of acquiring a broiler processing plant, hatchery, and feed mill. The company intends to repurpose these facilities for egg and egg production operations. Initially, the focus will be on converting the broiler processing plant into an egg grading facility.
• In November 2023, Rose Acre Farms unveiled a groundbreaking initiative in collaboration with Tideland Electric Membership Corp., to establish a cutting-edge microgrid at its Hyde County facility. This innovative project ensures an uninterrupted power supply by incorporating advanced solar technology and battery energy storage systems. This would reinforce the company’s position as a leading player in the egg processing market.
• On January 2024, Kewpie Egg Corporation expanded in Australia, establishing its first local subsidiary to bolster sales of condiments, such as mayonnaise and dressings. With demand on the rise, the move aimed to deepen brand penetration and strengthen supply systems.

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