The egg processing market involves cracking, separating, mixing, and blending of eggs to produce egg products such as liquid, frozen, dried and ultra-pasteurized eggs. These products have increased applications in food industry as ingredients in preparations such as baked goods, sauces, snacks and desserts due to benefits like consistency, longer shelf-life and ease of transportation. The growing demand for convenience and packaged food has fueled the need for egg products in the market.
The egg processing market is estimated to be valued at US$ 51.9 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends fuelling growth in the egg processing market is the rising demand for processed egg products from the foodservice industry. Foodservice establishments such as restaurants, cafes and catering companies increasingly prefer egg products for their consistency, shelf-stability and ability to provide portion control in preparations. Also, the growing vegan and flexitarian population has boosted demand for plant-based egg substitutes. Companies are investing in developing innovative plant-based egg replacements using ingredients such as aquafaba, tofu and mung beans to cater to the vegan demographic. Furthermore, technological advancements in membrane filtration processes for production of egg white protein and whole egg powder have increased applications of egg products in dietary supplements, infant nutrition and clinical nutrition.
Porter’s Analysis
Threat of new entrants: Low capital requirements for egg processing poses a low threat of new entrants. However, established players enjoy economies of scale and brand recognition.
Bargaining power of buyers: Large supermarket chains and food service companies have significant bargaining power over egg processors. They can negotiate lower prices and demand high product quality and food safety standards.
Bargaining power of suppliers: Egg farmers have moderate bargaining power as there are plenty of alternate buyers in the market. However, large processors can influence prices.
Threat of new substitutes: Other protein sources like meat, dairy, plant-based alternatives pose a moderate threat to eggs. However, eggs have strong brand image and are relatively affordable.
Competitive rivalry: Intense competition exists among established processors. Companies compete based on product quality, food safety, distribution network, and raw material sourcing.
SWOT Analysis
Strengths: Eggs are a highly nutritious, affordable, and versatile ingredient. Leading processors have efficient operations and supply chains.
Weaknesses: Industry is exposed to volatility in egg and feed prices. Smaller players have limited resources.
Opportunities: Growing demand for processed, convenience and organic eggs present opportunities. Expanding into new product categories like liquid, frozen or dried egg products.
Threats: Strict food safety and quality standards increase compliance costs. Vulnerable to outbreaks of avian diseases threatening egg supply. Trade barriers and geopolitical issues pose threats.
Key Takeaways
The global egg processing market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing consumer demand for processed and convenience foods. The food processing industry is undergoing rapid modernization in developing regions of Asia Pacific and Latin America, which is projected to drive the demand for processed eggs.
Regional analysis North America dominates the global egg processing market currently, owing to large consumption of eggs and processed products in the US. However, Asia Pacific is expected to witness the fastest CAGR during the forecast period with China and India emerging as high growth markets. Egg consumption is culturally ingrained in these regions and rising incomes are driving demand for branded and packaged eggs.
Key players operating in the egg processing market include Avril, Cal-Maine Foods, Inc., Eurovo S.R.L., Lactosan-Sanovo Holding A/S, Moba B.V., and ACTINI GROUP. Leading players are focusing on capacity expansions, new product launches, and mergers and acquisitions to consolidate their market positions. They are also investing in automation and digitization to improve efficiencies in production, supply chain and food traceability.
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