Why Are Egg Prices So High? The Reality for Bakeries, Caterers & Food Businesses

Picture this: You walk into the supply store, ready to stock up on eggs for the week. But instead of the usual bulk stacks, you find empty shelves—or worse, a price tag that makes you do a double take. $7.09 a dozen?! That’s not just a spike—it’s an omelet-shattering crisis.

If you run a bakery, catering business, or food production company, you’ve probably been hit hard by the skyrocketing cost of eggs. The once-affordable ingredient has now become a premium-priced commodity, forcing businesses to rethink recipes, budgets, and, in some cases, menu prices.

So, what’s causing this mess? And more importantly, what can you do about it? Let’s crack open the facts.

If you thought inflation was the main reason eggs cost more than a latte, think again. The biggest villain in this saga is avian influenza, or bird flu. Since October 2024, nearly 25 million egg-laying hens have been wiped out due to outbreaks, slashing the U.S. egg supply by more than 7%.

Think of it this way: If a bakery suddenly lost 7% of its flour supply, prices would jump. The same principle applies here—fewer hens, fewer eggs, higher costs.

And it’s not just regular eggs taking the hit. Cage-free and organic eggs have been impacted even more because many of the affected farms specialized in these products. If your business relies on specialty eggs, you’re probably feeling the pinch even more.

Just when you thought things couldn’t get worse, food safety issues have thrown another wrench into the mix. Over the past year, multiple salmonella-related egg recalls have forced farms to pull products from shelves.

This has left large buyers scrambling (pun intended) to find safe, reliable egg sources. Bakeries, caterers, and food manufacturers that buy in bulk are feeling the squeeze as reliable suppliers shrink and costs climb.

If your usual supplier is taking longer to deliver, or if prices fluctuate from one week to the next, you’re not alone. The entire food industry is still dealing with supply chain headaches that started back in the pandemic era.

A nationwide truck driver shortage (about 80,000 drivers short, to be exact) means getting eggs from farms to stores is taking longer and costing more. Add rising fuel prices, labor shortages at processing plants, and general logistics chaos, and you have a recipe for delays and markups.

For businesses that rely on consistent bulk orders, this is more than just an inconvenience—it’s a budgeting nightmare.

If you’ve noticed your grocery bill creeping up across the board, you’re not imagining things. Inflation has hit every corner of the food industry, and egg production is no exception.

• Feed costs have soared due to global grain shortages, making it more expensive to raise hens.

• Labor costs are rising , as farms struggle to retain workers.

• Processing and packaging costs have increased , adding even more to the final price.

The result? A 36.8% jump in egg prices over the past year, and no clear sign of relief anytime soon.

If your business depends on eggs, you’re probably already looking for ways to stretch your supply, cut costs, or adjust pricing. Here’s how bakeries, caterers, and food manufacturers are making it work:

Many businesses are finding creative ways to reduce egg usage in recipes without sacrificing quality. Some are experimenting with egg substitutes, while others are tweaking formulations to require fewer eggs per batch.

For example:

• Some bakeries are using more butter or oil in cakes to replace moisture lost from fewer eggs.

• Custard-based desserts are being reformulated with starches or plant-based thickeners .

• Bread recipes are being adjusted to rely more on gluten development rather than egg structure.

Plant-based egg substitutes are no longer just for vegans. With traditional eggs becoming so expensive, more businesses are turning to products like:

• Liquid egg replacements made from chickpeas or mung beans

• Powdered egg alternatives for baking

• Aquafaba (chickpea water) for whipped textures

With prices fluctuating wildly, some businesses are working with suppliers to lock in bulk pricing for extended periods. This helps maintain stability and ensures a steady supply, even when market conditions change.

Some food businesses are modifying portion sizes rather than hiking prices outright. For example:

• Restaurants may slightly reduce omelet portions.

• Bakeries might offer smaller versions of popular egg-heavy items.

• Catering businesses may swap in more egg-free menu options to balance costs.

These small adjustments help keep customers happy without causing sticker shock.

Unfortunately, egg prices are expected to stay high through most of 2025. The USDA predicts another 20% increase this year, meaning businesses need to plan for continued cost challenges.

Bird flu recovery takes time. Supply chain issues aren’t vanishing overnight. Inflation is still a problem. So, while prices may stabilize by late 2025, a dramatic drop isn’t likely anytime soon.

For food businesses, that means strategic planning is key. Whether that’s adjusting recipes, securing supplier deals, or switching to alternative ingredients, staying flexible is the best way to survive the eggpocalypse.

The egg crisis of 2025 has turned a basic kitchen staple into a high-stakes commodity, forcing bakeries, caterers, and food manufacturers to rethink how they buy, use, and price eggs. While supply chain struggles and inflation are making it tough, smart strategies can help businesses stay ahead of the game.

At Baker’s Authority, we understand how essential bulk ingredients are to running a successful food business. Whether you’re looking for egg alternatives, specialty baking ingredients, or bulk supplies, we’re here to help you keep your kitchen stocked—even when the market is unpredictable.