As of the end of August, the production capacity of certified "cage-free" eggs has exceeded "100 million", an exciting small goal! - "100 million"; Cage-free certified eggs took off in the second quarter, with production ramping up.
This is an important milestone for the industry as cage-free certified egg production was quickly established, addressing the concerns many cage-free Commitment companies had about cage-free egg production. The achievement of the 100 million goal is encouraging to the industry, and the prosperity and success of cage-free egg certification also brings new hope and opportunities for future development!
Although the production capacity of cage-free certified eggs in 2023 has increased rapidly, compared with market demand, we still have huge development potential, and now the market demand gap is huge, according to the research data of Lever Food in China: In 2021, the annual market demand for cage-free eggs in China is as high as 1.15 billion eggs, and by 2023, the current achievement rate is only about 8.7%.
In order to better promote cage-free egg certification, Shanghai Yuezi (IQC) began the "cage-free egg supply chain Improvement Project", at present, there are 3-5 cage-free farms are participating in the certification process, and it is expected that by the end of 2023 and the middle of 2024, cage-free egg production capacity will have a greater leap.
This is an exciting time, and we will continue to work closely together and continuously strive to meet market demand
Huge demand gap. - Demand outstrips supply
More than 2,000 companies worldwide have committed to sourcing 100% cage-free eggs by 2025.
That includes more than 50 companies in China. For many companies, the timing enters a five-year cycle of fulfilling this commitment. In order to enable the supply side to prepare in advance in terms of capacity, Lever estimates that the annual demand for cage-free eggs in China will increase by 1.15 billion eggs due to the commitments of these enterprises, based on the consumption of these more than 50 enterprises. Details can be found in "China Cage-free Egg Industry Report 2022", reply "report" in this public number, will be free.
Lever's prediction methods for the demand quantity of cage-free eggs are divided into two kinds: actual investigation and prediction. The actual numbers come from Lever asking the company directly about the amount of eggs it gets. The estimated numbers will be benchmarked against known companies in the same industry, based on various parameters such as revenue ratio, product composition ratio, industry experience value and the number of stores sold. Some companies have already made the switch to cage-free eggs, but they are not included in this demand forecast because they have not yet made public their policy commitments.
By the end of 2022, the number of companies that have committed to sourcing 100% cage-free eggs in China has reached nearly 150. In 2020, the number of committed companies will be only about 50; This means that within three years, the number has tripled. These companies are all on the verge of switching to cage-free eggs by 2025 (and some by 2027 or 2030).
Based on the current pace of food industry commitments and the increasing demand for protein from Chinese consumers, Lever also estimates that the demand for cage-free eggs will double by 2026, increasing the annual demand by 2.3 billion eggs. Cage-free eggs still have great potential in the future...
Trends in animal welfare and food sustainability
With the development and continuous improvement of China's cage-free egg certification system and more and more enterprises committed to purchasing cage-free eggs, this industry is facing a huge opportunity and challenge - the demand for cage-free eggs in the Chinese market is in short supply.
Corporate commitment and consumer preferences will continue to drive cage-free egg production and market growth. In the coming years, we can expect to see more food companies fulfill their commitment to sourcing cage-free eggs. This will encourage more egg farms to improve production conditions, raise animal welfare standards and provide more high-quality cage-free eggs. At the same time, it is a reminder that sustainability and health are the future of the food industry, and the successful development of cage-free eggs is an inspiring example of the importance of animal welfare and food sustainability.
