Abstract
This report focuses on the two segments of the egg market: shell eggs and liquid eggs/egg substitutes. Besides presenting sales data on a segment-by-segment basis, the report considers a range of topics, including the following:
- The size of the market and its growth potential now that food costs are rising across the board
- What manufacturers and retailers can do to innovate in a market that is commodity driven.
- The role of private label and the inroads store brands are making into the specialty egg segment.
- The room for growth in the liquid egg segment.
- The growing role of ethical issues in egg production and packaging.
- The loyalty of consumers to the egg market, and their strong opinions concerning the value of specialty products.
Table of Contents
- Scopes and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Market topped $5.1 billion in 2007
- Regardless of price, consumers still buy eggs
- Store brands control most of shell egg market
- Supermarkets control almost two-thirds of sales
- Price and health considerations drive egg market
- Product innovation
- American Egg Board leads advertising programs
- Eggs are a breakfast staple, but other occasions weak
- Consumer perceptions about eggs
- Market Size
- Strong long-term trend, but too hazardous to make a short-term forecast
- Key points
- Egg prices continue to climb
- Figure 2: Total U.S. sales of eggs and egg substitutes at current prices, 2002-07
- Figure 3: Total U.S. sales of eggs and egg substitutes at inflation-adjusted prices, 2002-07
- Wal-Mart sales
- Competitive Context
- Key points
- Price increases do not reflect volume changes
- Figure 4: Volume and dollar sales of eggs through FDMx, 2002-07
- Cage-free in California?
- Too expensive to expand
- Segment Performance
- Key points
- Fresh egg sales start to increase after diet fad crash
- Other market forces also take hold
- Figure 5: U.S. sales of eggs, by segment, 2005 and 2007
- Segment Performance--Eggs
- Key points
- Changing diet fads champion, then challenge, egg sales
- Market forces lead to extreme price rises
- Figure 6: U.S. sales of fresh eggs, 2002-07
- Segment Performance--Liquid Eggs/Egg Substitutes
- Key points
- Egg substitutes subject to similar market forces
- Figure 7: U.S. sales of egg substitutes, 2002-07
- Retail Channels
- Key points
- Eggs are a supermarket staple
- Figure 8: U.S. sales of eggs, by retail channel, 2005 and 2007
- Retail Channels--Supermarkets
- Key points
- Supermarkets "under emphasize" eggs, according to AEB report
- Add four feet, increase sales by more than 1 percentage point
- Figure 9: U.S. sales of all eggs at supermarkets, 2002-07, in current prices
- Figure 10: U.S. sales of all eggs at supermarkets, 2002-07, at inflation-adjusted prices
- Retail Channels--Natural Supermarkets
- Figure 11: Natural channel retail sales of eggs, at current and inflation adjusted prices, 2005-07
- Market Drivers
- Key points
- The rising cost of food
- Figure 12: Average retail food costs, selected products, 2000-08
- Health and diet
- Leading Companies
- Key points
- In an unbranded industry, a move towards branded products
- Egg substitutes/liquid eggs dominated by ConAgra
- Figure 13: Sales of leading egg companies, 2005 and 2007
- Brand Share--Eggs
- Key points
- More than two-thirds of the market is private label
- Keeping pace with innovation, but not with price
- Figure 14: FDM brand sales of fresh eggs in the U.S., 2005 and 2007
- Brand Share--Egg Substitutes
- Key points
- ConAgra created the segment and now has to hold onto it
- Innovate in order to stand out
- Figure 15: FDM brand sales of egg substitutes in the U.S., 2005 and 2007
- Brand Qualities
- Liquid eggs
- Innovation and Innovators
- More than one way to peel an egg
- And more than one way to save time on cooking them
- New product forecast
- Figure 16: New product claims, egg and egg products, 2006-07
- Advertising and Promotion
- Overview
- American Egg Board (AEB)
- Figure 17: American egg board, television ad, 2008
- Figure 18: American egg board, television ad, 2008
- ConAgra
- Eggland' s Best
- Figure 19: Eggland' s best, television ad, 2008
- Purchase of Eggs and Egg Substitutes
- Key findings
- Figure 20: Types of eggs purchased, by income, February 2008
- Trended usage of eggs
- Figure 21: Trended usage of eggs, 2001-07
- Consumption per Capita and per Household
- Key findings
- Figure 22: Per-capita and household consumption of eggs, February 2008
- Figure 23: Average household size, by race/Hispanic origin of householder, 2001-06
- Occasions for Eating Eggs
- Key findings among egg consumers
- Figure 24: Occasions for eating eggs, by age, February 2008
- Know Your Eggs!
- Key findings among egg buyers
- Figure 25: Assessing the healthfulness of brown vs. white eggs, by age, February 2008
- Eggs and Health
- Key findings among egg buyers
- Age matters in this market
- Knowledge of Omega-3 and health concerns
- Figure 26: Health issues concerning eggs, by age, February 2008
- Egg Freshness
- Key findings among egg buyers
- Figure 27: Length of time eggs can be kept in refrigerator and still be good, by income, February 2008
- The Cost of (Specialty) Eggs
- Key findings
- Figure 28: Respondents who do not purchase specific types of specialty eggs because of price, February 2008
- Appendix: Other Useful Consumer Tables
- Figure 36: Types of eggs used, by age, February 2008
- Figure 37: Types of eggs used, by race/Hispanic origin, February 2008
- Figure 38: Occasions for eating eggs, by income, February 2008
- Figure 39: Occasions for eating eggs, by race/Hispanic origin, February 2008
- Figure 40: Health issues concerning eggs, by income, February 2008
- Figure 41: Health issues concerning eggs, by race/Hispanic origin, February 2008
- Figure 42: Length of time eggs can be kept in refrigerator and still be good, by age, February 2008
- Figure 43: Length of time eggs can be kept in refrigerator and still be good, by race/Hispanic origin, February 2008
- Appendix: Trade Associations
