Eggs

Eggs Global Market Outlook:

• The global production and consumption of egg is expected to grow at a CAGR of 4 percent during 2022–2026. Rise in demand is driven by increased protein consumption globally and growing demand for cage-free eggs. Further, recovering demand from the HoReCa and retail sector post-pandemic will strengthen the market

Porter's Analysis on Eggs

The market is driven by fundamental factors; thus the supplier and buyer powers are medium. Developed countries have consolidated supplier base whereas the supplier base is becoming consolidated in the developing countries

Supplier Power

• The bargaining power of egg products suppliers is medium

• Smaller farms will be unable to compete with larger businesses

• Large supermarket chains require formalized distribution channels with the ability to supply regionally and nationally

Barriers to New Entrants

• The shell egg production industry remains highly fragmented

• Except top five suppliers, every supplier is trying to augment its market share leading to potential consolidation in the near future

Intensity of Rivalry

• The shell egg production industry remains highly fragmented

• Except top five suppliers, every supplier is trying to augment its market share leading to potential consolidation in the near future

Threat of Substitutes

• There is a low threat of substitution for ingredients

• This is because eggs have unique qualities and applications that can not be carried out by substitutes

• Furthermore, the price difference between close substitutes is too wide, hence it is unlikely to replace in those processes anyway

• Plant based eggs may pose a little threat, but no major threats are being seen for the next two years

Buyer Power

• The bargaining power of egg products buyers is medium

• Food business operators ensure that suppliers are offering safety, security, and traceability

• They also ensure that all the guidelines laid out by USDA in the egg product inspection process are being followed

Cost Structure Analysis : Eggs

• The feed, housing and equipment costs constitute the major cost, followed by operating cost, consisting of maintenance, livestock expense, insurances, and taxes

• Components, like labor, machinery, packaging, and transportation, vary with specific products (like dried/frozen/yolk/albumen products)

• Adverse weather conditions in the pasture lands influence the feed cost causing prices to trend high