Egg Products Market Analysis

Egg Products Market Deep Dive – PESTLE, Porter, SWOT

The Egg Products Market is undergoing a dynamic transformation. This is being driven by changing consumer preferences, advances in food technology, and growing interest in health and sustainability. As consumers are increasingly looking for convenient and nutritious food, the demand for liquid, frozen and dried egg products is on the rise. Also, the expanding food service sector and the increasing use of egg products in a wide range of culinary applications, from baking to ready-to-eat meals, are contributing to this change. In addition, the market is seeing innovation in the form of organic and free-range egg products that cater to the health-conscious. These factors are reshaping the Egg Products Market and presenting new opportunities for stakeholders who wish to capitalize on these trends and consumer demands.

PESTLE Analysis

• Political:
  In 2024, the market for egg products is influenced by a number of political factors, such as regulations on food safety and animal welfare. By 2025, the European Union is introducing a ban on cages for laying hens, which will affect around 300 million hens in the member states. This will boost demand for cage-free eggs as consumers increasingly favour ethically sourced food.
• Economic:
  In 2024 the market for egg products will be influenced by the varying feed costs and the changing consumption pattern. In 2024 the average price of corn, the main feed, will be around £5.50 per 100 litres, which will be a 10% increase over the previous year. The rising feed costs will have an effect on the price of egg products. The producers will probably pass on the increase in costs to the consumers, which will influence the demand elasticity of the market.
• Social:
  Amongst the consumers who were questioned, 65% said they preferred free-range or organic eggs. This tendency is particularly marked among millennials and Generation Z consumers, who are more inclined to put ethical considerations and health in the first place when they are making their choice. Accordingly, by 2024, brands which conform to these values will be able to count on a larger market share.
• Technological:
  The egg industry is one of the most important in the world, especially in terms of food safety and production efficiency. In 2024, the number of egg processing systems will increase by 20 percent, which will help to increase the efficiency of the whole production line and reduce labor costs. Pasteurization technology has also improved, and the shelf life of liquid egg products has increased, thus satisfying the convenience of food preparation.
• Legal:
  Legal aspects of the egg market include the regulation of food safety and labelling. In the USA, the Food and Drug Administration (FDA) has established new guidelines, which will require the pasteurization of all egg products by 2024, affecting the production of around a billion eggs. This is to reduce the risk of food poisoning and is expected to increase the operating costs of the industry, which must invest in pasteurization equipment.
• Environmental:
  Among the products whose markets are increasingly affected by the environment are those containing eggs, and in particular those whose production is based on sustainable farming. It is estimated that by 2024, a third of egg farmers will have adapted to the environment by adopting practices such as the recovery of waste products and the conservation of water, in response to the demand of consumers for products based on sustainable farming. In addition, the carbon footprint of egg production is being reviewed, with the aim of reducing it by 25% by 2030, which is leading to a search for more sustainable farming methods.

Porters Five Forces

• Threat of New Entrants:
  The barriers to entry to the egg products market are moderate, because of the high cost of production and the need to meet food safety regulations. However, the growing demand for egg products and the opportunities for innovation in the industry may attract new entrants and lead to increased competition.
• Bargaining Power of Suppliers:
  The supply of eggs is fairly abundant, and there are many suppliers in the market. Suppliers of eggs are not very strong, and the manufacturers are easy to buy.
• Bargaining Power of Buyers:
  The buyers in the egg products market, especially the food manufacturers and the food retailers, have considerable power to bargain, because they have many alternatives to choose from and are able to negotiate on price. They are further empowered by the increasing demand for transparency and quality in the food products they buy.
• Threat of Substitutes:
  The demand for eggs is inseparable from the demand for the products of the egg, and although there are several substitutes for eggs, such as products made from plants, there is no substitute for eggs which has the same properties and the same nutritional value as eggs. However, as the preferences of consumers are changing towards healthier and more sustainable foods, the threat of substitutes is expected to grow.
• Competitive Rivalry:
  The market for egg products is characterized by intense competition between established players and new entrants. In an effort to win market share, companies are constantly innovating and introducing new products. This leads to aggressive price competition and marketing efforts.

SWOT Analysis

• Strengths:
  • High nutritional value of egg products, making them a staple in many diets.
  • Diverse range of products available, including liquid, frozen, and dried egg products.
  • Strong brand loyalty among consumers for established egg product brands.
• Weaknesses:
  • Perception of egg products being high in cholesterol may deter health-conscious consumers.
  • Vulnerability to price fluctuations due to feed costs and supply chain issues.
  • Limited shelf life for some egg products, affecting distribution and sales.
• Opportunities:
  • Growing demand for plant-based alternatives may lead to innovation in egg substitutes.
  • Expansion into emerging markets with increasing protein consumption.
  • Rising trend of convenience foods can boost the demand for ready-to-use egg products.
• Threats:
  • Intense competition from alternative protein sources and plant-based products.
  • Regulatory challenges related to food safety and animal welfare standards.
  • Potential impact of avian influenza outbreaks on supply and pricing.

In 2024, the Egg Product Market will be characterized by a strong nutritional profile and diverse products, which are a major strength. Challenges such as health perceptions and price volatility, on the other hand, will be a weakness. Opportunities for growth lie in the development of plant-based alternatives and in expanding into new markets. Competition and regulatory pressures, however, will pose a threat to the stability and growth of the market.