Key Takeaways:
- Recent surveys show that consumers are now more willing to pay higher prices for eggs compared to earlier in the year. The percentage of people willing to pay over $5 per dozen eggs has nearly doubled since January, according to data from Numerator.
- Despite the increase in consumer willingness to pay more for eggs, there is still a gap between the maximum amount consumers are willing to spend and the average price for a dozen eggs in March.
- Consumer tolerance for higher egg prices varies depending on factors such as age, ethnicity, and shopping preferences.
Insights:
Concerns about the affordability and availability of eggs have slightly decreased since the beginning of the year, as reported by Numerator.
By the numbers
$5.56
Average price consumers are willing to pay for a dozen eggs in April
$6.54
Average price for a dozen eggs in March, marking an 82% increase from March 2024
66%
Year-over-year increase in egg dollar sales in Q1 due to higher prices
-2%
Year-over-year decline in egg unit sales in Q1
Shopper perceptions of egg prices are influenced by their existing beliefs and relative price increases rather than actual prices. Different demographics have varying opinions on egg pricing, with factors like historical context and geographic location playing a role.
A willingness to pay more for eggs is evident across various consumer groups, including younger shoppers, Hispanic consumers, and individuals in urban areas. Historical prices and expectations from preferred retailers also impact consumer tolerance for higher egg prices.
While urban shoppers tend to pay more for eggs, they are accustomed to higher grocery prices and are less likely to find current egg prices expensive compared to suburban or rural shoppers.
Grocers’ store brands are benefiting from the increased willingness to pay more for eggs, with private brands capturing a significant market share. Brands under Walmart, Costco, and Kroger are leading in this category.
Concerns about egg affordability, availability, and safety have slightly decreased, with some consumers expressing worries about recent government cuts affecting egg safety and reduced confidence in egg producers and supply chains.
Recent demand for shell eggs improved ahead of Easter, although major retail grocers opted out of running traditional egg promotions. Shell egg supplies have started to recover, leading to lower price levels for consumers compared to earlier in the year.