The cost of eggs, an everyday household staple, has recently soared to all-time highs. According to the USDA, as of March 2025, the average retail price for a dozen eggs reached $8.17, marking an eye-watering 84% increase since early 2024 and double what consumers paid just one year ago.
While eggs make up a small piece of the Consumer Price Index (CPI), they can significantly impact the grocery price category. Before recent market disruptions, Americans were accustomed to paying around $2 per dozen. The current prices have left many shoppers shell-shocked at checkout counters.
Why Are Egg Prices So High?
Several factors have scrambled the market. A devastating outbreak of highly pathogenic avian influenza (HPAI) has forced producers to cull millions of egg-laying hens. Since 2022, over 166 million birds have been affected, including 127 million egg layers, severely restricting supply.
Inflation has compounded the problem, driving costs for crucial inputs like chicken feed, labor, and fuel. These increased production expenses inevitably get passed on to consumers. Replacing lost flocks has become more expensive, further straining the supply chain.
Finally, despite rising prices, demand remains relatively steady. Eggs are an “inelastic good” – people continue buying them regardless of price increases. Consumer preference for specialty eggs, such as cage-free varieties, has also grown faster than producers can accommodate.
Some watchdog groups have raised concerns that major producers might leverage the crisis to inflate prices artificially and consolidate market power. These allegations have prompted a Department of Justice antitrust investigation into pricing practices.
Who’s Profiting from Higher Prices?
Cal-Maine Foods (CALM) controls approximately 20% of the nation’s egg supply and has seen its profits soar due to higher egg prices. The company reported a staggering 101% increase in net sales revenue for the third fiscal quarter of 2025. While shareholders have benefited from strong stock performance, the company faces DOJ scrutiny over potential price manipulation.
Another specialty producer, Vital Farms (VITL), has also flourished over the past year. The company’s focus on free-range eggs has aligned with consumer preferences, helping drive a 108% net income increase in 2024, with continued growth expected through 2025.
Meanwhile, food distributors like The Chefs’ Warehouse (CHEF) and Performance Food Group (PFGC) are feeling the ripple effects as they have been forced to adjust their pricing strategies to account for elevated egg costs.
What’s Ahead for Egg Prices?
While wholesale egg prices slightly declined in March 2025, these reductions have yet to reach grocery store shelves fully. Market analysts suggest stabilization could take 3-6 months, though seasonal demand spikes for Easter and Passover might temporarily push prices even higher.
Unfortunately, the long-term outlook remains concerning. The USDA forecasted egg prices would rise 41% in 2025, indicating prices could remain elevated and stay near $7.95 per dozen through December 2025
For now, consumers will continue to face hard-boiled decisions at the grocery store as this once-budget-friendly staple remains a luxury item for many American households.