Asia-Pacific Cage-Free Eggs Market Size (2024-2030)

The Asia-Pacific cage-free egg market was valued at USD 859.65 million in 2023 and is projected to reach a market size of USD 1318.42 million by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 6.3%.

Cage-free eggs are eggs laid by free-roaming animals. When the egg carton is marked cage-free, it means that the laying hens are not caged and are free to roam around the coop, roost, and lay eggs. Uncaged eggs are wider and more orange. These types of eggs are thought to have nutritional advantages over commercial eggs.

Key Market Insights:

At almost 18% of the market, cage-free eggs have the second-highest percentage of the egg market.

According to estimates from the International Egg Commission, 10% of Chinese farms do not employ cages.

Nestlé said today that by 2025, all of its food items would solely use eggs from hens raised without cages worldwide.

By 2025, over 50 food companies and retailers have pledged to obtain cage-free eggs from China, according to Statista.

According to a poll conducted in 2022, almost 70% of participants identified a lack of standards and labeling as the primary obstacle to cage-free eggs. To tackle this, it is necessary to raise customer awareness of the importance of standards and labeling, as well as the methods used in the production of cage-free eggs. Additionally, for the production of cage-free eggs, establishing thorough guidelines and certification programs outlining the specifications for housing, welfare, and management techniques is beneficial.  

Asia-Pacific Cage-Free Eggs Market Drivers:

Industry initiatives are driving the market forward.

Stakeholders in the egg industry, including manufacturers, retailers, and food service companies, are increasingly seeking cage-free eggs. These commitments often stem from the company's corporate social responsibility goals and pressure from consumers and animal welfare organizations. These measures will strengthen the growth of the cage-free egg market by creating demand and encouraging producers to invest in cage-free egg products.

Technological advancements are boosting growth.

Advances in poultry farming technology, particularly in cage-free egg production, are leading to increased productivity and reduced costs. Innovations such as automated feeding and monitoring systems are improving the health and productivity of hens, resulting in cage-free eggs that are more feasible and attractive to producers in the Asia-Pacific region.

Animal activism sheds light on the importance of cage-free eggs, which are fueling the expansion.

Regional demand for cage-free eggs has skyrocketed after animal rights activists raised concerns over the years about cruelty to animals and humans linked to natural nesting. In the current business process, laying eggs are stored in cages. This process physically confines the birds, and hens restrict their natural behavior, resulting in poor health and disease or illness among them. On the other hand, a well-designed shelter ensures that chickens live a good and healthy life, which directly affects egg quality. Many animal welfare groups have generated awareness regarding this cruel farming practice involving caged chickens. Awareness of animal welfare leads to a rising need for environmentally friendly and cruelty-free products, which is expected to increase global demand for cage-free eggs during the forecasting period.

Asia-Pacific Cage-Free Eggs Market Restraints and Challenges:

High initial investment costs are a challenge.

Transitioning from traditional battery cage systems to cage-free production requires significant investment in infrastructure, equipment, and training. For many egg producers in the Asia-Pacific region, especially small and medium-sized enterprises, the high initial costs required to rehabilitate existing facilities or build new ones can lead to barriers to entry into the cage-free market. In addition, regular maintenance and operating costs of products may also be higher, causing manufacturers to experience greater financial burdens.

Complexities in distribution and logistics hinder market growth.

One significant challenge in the Asia-Pacific region is the complex distribution and logistics network, particularly in countries with vast and diverse geographical landscapes. Ensuring the efficient distribution of cage-free eggs to urban centers, rural areas, and remote regions can be challenging due to infrastructural limitations, transportation costs, and regulatory barriers. Additionally, maintaining product freshness and quality during transit, especially in tropical climates with high temperatures and humidity, presents logistical challenges for manufacturers and distributors. Developing robust distribution channels and implementing effective cold chain management solutions are crucial to overcoming these challenges and ensuring the timely delivery of cage-free eggs to consumers across the region.

Maintaining quality and standardization can create barriers.

Maintaining consistency in quality and standardization of cage-free eggs can be difficult due to differences between farming techniques and processing. Ensure batch-to-batch consistency and compatibility requirements, especially for companies sourcing from multiple suppliers or regions.

Asia-Pacific Cage-Free Egg Market Opportunities:

Driven by changing consumer preferences, regulatory requirements, and advances in technology, the Asia-Pacific cage-free egg market offers many business opportunities. The main opportunity lies in urbanization and increased disposable income, which support the need for healthy and sustainable food production. The cage-free egg market is expected to grow as consumers become more conscious of animal welfare issues and seek products with higher health standards. Additionally, government policies aimed at improving animal welfare standards in egg production, economic measures, and a commitment to purchasing cage-free eggs have created a conducive environment for business growth. Additionally, advances in cage-free poultry farming technology, such as automated feeding and monitoring, have increased productivity and efficiency and strengthened business potential. Additionally, increased consumer awareness of food safety and environmental sustainability provides cage-free egg producers with the opportunity to diversify their products and capture a larger market. Overall, the Asia Pacific cage-free egg market is promising for producers, retailers, and consumers, spurring the region's transition to sustainable and humane egg production.

ASIA-PACIFIC CAGE-FREE EGG MARKET REPORT COVERAGE:

Asia-Pacific Cage-Free Eggs Market Segmentation:

Asia-Pacific Cage-Free Eggs Market Segmentation: By Egg Color:

• Brown
• White

Based on the egg color, the white segment dominates the Asia-Pacific market, accounting for more than 65% of the market in 2023. White eggs dominate the Asia-Pacific egg market due to their low cost and are produced on a large scale due to the short time required. Brown eggs, on the other hand, are the fastest-growing category. Brown eggs are becoming more and more popular because consumers believe they are of higher quality, have more nutritional content, and are produced using more natural methods. Brown eggs are preferred because they are thought to have better qualities and are associated with organic or free-range production methods.

Asia-Pacific Cage-Free Eggs Market Segmentation by Distribution Channel:

• Offline
• Online

In 2023, the offline retail segment was the largest growing, accounting for more than 60% of the Asia-Pacific market. Retail stores have easy access to eggs for customers, which contributed to the growth of sales prices in this segment. Retail channels remain dominant in the Asia-Pacific cage-free egg market due to their widespread availability and consumer convenience. Online channels are the fastest-growing. This is because of the convenience. People can order their products from the comfort of their homes and have them delivered to their doorsteps. Furthermore, this channel offers many discounts, making it an attractive option.

Asia-Pacific Cage-Free Eggs Market Segmentation: Regional Analysis:

• China
• Japan
• India
• South Korea
• Australia & New Zealand
• Rest of Asia-Pacific

China is the largest and fastest-growing market. China's cage-free egg market is expanding rapidly. As the urban economy accelerates and disposable income increases, consumers are becoming more conscious of food safety and culture, and the demand for cage-free eggs is increasing. Retailers, especially supermarkets, specialty stores, and e-commerce sites, lead the distribution of goods in the city, again meeting the huge demand for healthy and nutritious food. In addition, government measures to improve food safety and regulations to strengthen animal welfare have also increased demand. As a result, China's cage-free egg market has experienced massive growth, with many opportunities for domestic and international manufacturers to capitalize on this trend.  There is a growing market for cage-free eggs in Australia, with strong consumer demand due to concerns about animal welfare and food safety. Cage-free eggs are widely sold in stores such as supermarkets, specialty stores, and grocery stores. The country's strong regulatory policies and consumer awareness have made it a major market for cage-free eggs in the Asia-Pacific region. The cage-free egg industry in India emerged in the face of changing consumer preferences and changing agricultural practices. As the population grows and urbanization increases, consumers are becoming more conscious of food safety, animal welfare, and environmental sustainability. Although conventional egg production continues in the market, the demand for cage-free eggs, especially from animal welfare consumers, is increasing. Markets such as supermarkets, specialty stores, and online sites are the main sources of cage-free eggs. Government initiatives to promote permaculture and animal welfare will lead to increased cage-free egg production in India.

COVID-19 Impact Analysis on the Asia-Pacific Cage-Free Eggs Market:

The COVID-19 pandemic has had a major impact on the Asia-Pacific cage-free market, creating challenges and opportunities for manufacturers and consumers. As the country imposes curfews and movement restrictions to contain the virus, the supply chain from production to distribution and consumption is being disrupted. One of the biggest impacts of the pandemic has been a shift in consumer behavior towards healthier, more nutritious food choices. As health and safety awareness increases, many consumers are looking for products considered safer and more ethical, including cage-free eggs. This has led to increased demand for cage-free eggs in some markets, as consumers prioritize products perceived as healthy and produced for many patients. However, the pandemic also created challenges for cage-free egg producers. Supply chain disruptions, including labor shortages, delivery delays, and logistics challenges, have impacted the production and distribution of cage-free eggs. In addition, the closure of food businesses such as restaurants and hotels caused the economy to decline, affecting sales for producers who were heavily dependent on food service channels. Despite these challenges, the Asia-Pacific cage-free egg market has proven to be resilient during the pandemic. Manufacturers quickly adapt to meet changing consumer needs and implement safety measures to ensure continued production. Additionally, government support and measures to improve the health and welfare of animals have provided support for the growth of the cage-free egg industry in some countries.

Latest Trends/ Developments:

The cage-free egg market in the Asia-Pacific has experienced some significant trends and developments that have shaped the market landscape. One of the most important factors is the increasing consumer demand for healthy and nutritious foods, including cage-free eggs. Increasing consumer awareness of animal welfare, environmental sustainability, and food safety has led to the use of cage-free eggs. Manufacturers can establish their presence in the market by adopting these measures in their production of cage-free eggs.

Another trend is the expansion of retail access to cage-free eggs, especially through e-commerce platforms. With the advent of online shopping, consumers are increasingly purchasing cage-free eggs from online stores that offer greater convenience and choice. Producers can either release their websites or partner up with different marketplaces to increase their revenue.

In addition, technological development plays an important role in increasing the value and production of cage-free eggs. Innovations such as automated feeding systems, smart devices, and data analysis are helping producers optimize and improve the health of cage-free animals. With proper consultation, one can learn about these technologies and implement them in their business model for more optimization of cage-free eggs.

Key Players:

1. Baiada Poultry
2. Sunny Queen Farms
3. Hy-Line International
4. Charoen Pokphand Group
5. Ise Foods Inc
6. AAA Egg Company
7. Eggriculture Foods Ltd
8. Seng Choon Farm
9. Ovostar Union (Prime One Capital Limited)
10. Sri Selvalakshmi Group

In August 2023, Baiada Poultry expanded with Two New State-of-the-Art Breeding Farms. The company, which incorporates the Lilydale Free Range and Steggles brands, is set to develop with the construction of two completely automated new breeding farms in the district, in progress to be commissioned in mid-2024.