Processed Eggs Market Analysis

Processed Eggs Market Deep Dive – PESTLE, Porter, SWOT

During the course of this century the egg market has grown considerably, mainly due to changing tastes and the increasing demand for convenience in meal preparation. The demand for products ready for use has also grown. Liquid eggs, dried eggs and egg dishes offer time-saving solutions and versatility in the kitchen. Also, the growing knowledge of the nutritional value of eggs and the technological developments in the industry have contributed to the increased attractiveness of the market. There is a wide range of products available to cater for various dietary needs and food trends, including organic and free-range eggs, which are increasingly popular among health-conscious consumers. And the market will continue to develop. For this reason, a good understanding of the changing demands of consumers, the regulatory framework and the competitive situation will be of great importance to the industry if it is to make the most of the opportunities offered by the egg market.

PESTLE Analysis

• Political:
  In 2023, the processed eggs market will be influenced by various political factors, such as government regulations on food safety and agricultural practices. The U.S. Department of Agriculture (USDA) has established strict guidelines to ensure the safety and quality of eggs. For example, in June 2017, the Food and Drug Administration (FDA) Food and Inspection Service (FSIS) reported that more than 90 percent of egg processing plants in the United States have complied with these regulations, which are designed to reduce foodborne illnesses.
• Economic:
  In 2023, the economic landscape for the egg market will be shaped by the rise and fall of commodity prices and the spending habits of consumers. In early 2023, the wholesale price of eggs in the United States was $2.50 per dozen, an increase of 15% over the previous year. This price increase is the result of transportation and feed costs, which have lowered the profit margins of egg producers. Also, consumers’ spending on processed foods, including egg products, has increased by 5%, indicating a growing preference for convenience.
• Social:
  The egg processing market is influenced by social trends. These include a growing desire for healthy and convenient food. In 2023, a survey showed that 68% of consumers wanted to eat more food with a high percentage of animal protein in their diets. Eggs are a popular choice because of their versatility and nutritional value. However, the increasing popularity of plant-based diets has led to an increase in the demand for egg alternatives. For example, in 2023, a survey showed that 25% of consumers were interested in replacing eggs with a plant-based alternative.
• Technological:
  The egg market is being affected by the influence of technology, particularly in terms of production efficiency and product innovation. By 2023, the automation level of egg production and processing plants will have increased by 30 percent. Pasteurization technology has been improved, and the shelf life of pasteurized products has been extended. At the same time, the new method has reduced the time for pasteurization by half, while maintaining the quality of the product.
• Legal:
  Regulations affecting the processed eggs market are those concerning food safety and labeling. The FDA has ordered that by 2023 all processed egg products must be clearly labeled as to their ingredients, which will affect about 40 per cent of the market. This regulation is intended to protect consumers with food allergies and to ensure transparency in labeling. It will affect the production and marketing strategies of the egg industry.
• Environmental:
  The market for processed eggs is becoming increasingly aware of the importance of the environment, especially in terms of sustainable farming. It is estimated that by 2023, 60% of egg producers will have adopted environmentally friendly methods such as cage-free systems and organic methods. This trend is driven by the demand for ethically sourced products, with 55% of consumers willing to pay a premium for eggs produced under sustainable farming methods. Furthermore, the industry is under pressure to reduce its carbon footprint, with a target to reduce greenhouse gas emissions by a quarter by 2030.

Porters Five Forces

• Threat of New Entrants:
  The market for processed eggs has medium-level entry barriers, notably the need for special equipment and adherence to food-safety regulations. This market is growing, but new entrants may face difficulties in establishing brand awareness and distribution channels.
• Bargaining Power of Suppliers:
  “The supply of raw eggs is abundant, and there are plenty of sellers. The buyers have a large choice of suppliers and can therefore negotiate prices and conditions with them.”
• Bargaining Power of Buyers:
  The buyers of processed eggs, such as food manufacturers and retailers, have a high degree of bargaining power. They have alternative products and are able to haggle over price. They are further strengthened by the existence of private label products which offer similar products at competitive prices.
• Threat of Substitutes:
  There are several substitutes for coagulated eggs, such as egg substitutes and other sources of protein. However, the unique properties of coagulated eggs limit their threat. However, as the trend towards a more vegetarian diet increases, the threat from substitutes will increase over time.
• Competitive Rivalry:
  The market for processed eggs is characterized by intense competition between established companies and new entrants. The companies compete on price, quality and innovation, which creates a very competitive environment and may affect profit margins and market share.

SWOT Analysis

• Strengths:
  • High nutritional value and versatility of processed eggs.
  • Growing demand for convenience foods among consumers.
  • Longer shelf life compared to fresh eggs, reducing waste.
  • Established supply chains and distribution networks.
• Weaknesses:
  • Higher production costs compared to fresh eggs.
  • Limited consumer awareness about the benefits of processed eggs.
  • Potential quality perception issues among traditional egg consumers.
  • Dependency on specific processing technologies and equipment.
• Opportunities:
  • Expansion into emerging markets with rising protein consumption.
  • Innovation in product offerings, such as organic and fortified processed eggs.
  • Increasing trend towards plant-based diets may lead to hybrid products.
  • Growing foodservice sector providing new distribution channels.
• Threats:
  • Intense competition from alternative protein sources.
  • Fluctuations in raw egg prices affecting profitability.
  • Regulatory challenges and food safety concerns.
  • Changing consumer preferences towards fresh and organic products.

In 2023 the processed eggs market will be characterized by its strengths in terms of nutrition and convenience, and its weaknesses in terms of higher production costs and increased awareness of consumers. Opportunities for growth lie in the development of new markets and product innovations, while competition and regulations will affect the dynamic of the market. Strategic emphasis on education and diversification may help to improve market positioning.