Why Are Eggs Still So Expensive in 2025?

Inside the Bird Flu Outbreak, State Laws, and Soaring Production Costs Driving the U.S. Egg Crisis

Eggs: once one of the most affordable grocery staples, now a source of sticker shock in nearly every U.S. household. From breakfast tables to bakeries, consumers are still feeling the financial pinch of skyrocketing egg prices, even as shelves start to refill. But what’s really behind the ongoing egg price crisis in 2025?

The truth? It’s not just inflation. A tangled mix of historic bird flu outbreaks, strict state farming laws, rising production costs, and consumer demand spikes have all contributed to a shortage that has reshaped the egg industry and consumer behavior across the country.

Let’s crack open the full story.

The Real Culprit: H5N1 Bird Flu

At the heart of the egg shortage is Highly Pathogenic Avian Influenza (HPAI), better known as H5N1 bird flu. Since February 2022, the U.S. has faced the worst avian flu outbreak in its history, with over 131 million birds affected.

In 2025 alone, more than 31 million egg-laying hens and 2.5 million pullets (young hens) have been culled to prevent the virus from spreading. That’s a staggering reduction in the supply chain, one that can’t be replaced overnight.

The process of disinfecting facilities and raising new flocks takes months—hens don’t lay eggs until they’re about 19–20 weeks old. As of April 1, 2025, the U.S. had 287 million table-egg-laying hens, down from the typical 320 million, underscoring just how hard the industry has been hit.

State Laws and Regulation Complications

The problem isn’t just the flu—it’s also regulation.

Seven states, including California, Colorado, Massachusetts, and Oregon, have implemented or are enforcing cage-free egg laws, banning the sale of conventionally farmed eggs. While these laws are aimed at improving animal welfare, they’ve also complicated supply.

Cage-free hens, which make up about one-third of all egg layers, have been disproportionately impacted by bird flu—accounting for nearly 60% of all flu-related cullings in 2024. These hens live in more open environments, which, while more humane, also make disease control more challenging.

So not only are farmers dealing with fewer hens, but those trying to comply with new regulations face higher costs, tighter restrictions, and longer delays in replacing their flocks.

Soaring Prices and Stock Shortages

The numbers tell a striking story:

• In March 2025, the average national price for a dozen large, Grade-A eggs hit $6.23—an all-time high.

• By May 2025, prices dropped to $4.55, but that’s still 41.5% higher than May 2024.

• Compare that to $1.41 in 2019, and you see the staggering increase.

Many grocery stores, especially in states with cage-free mandates, reported empty shelves and purchase limits. Retailers like Market Basket in Massachusetts limited sales to 2 cartons per family. Stores such as Costco and Whole Foods faced similar stock issues, leading to customer complaints on social media platforms like X (formerly Twitter).

Rising Costs Across the Supply Chain

Behind every carton of eggs are rising costs across the board:

• Feed prices (corn and soy) are up due to global demand and climate issues.

• Fuel and transportation costs remain high.

• Labor shortages, especially in the trucking industry, have increased delivery times and distribution expenses.

• Packaging and processing costs are higher post-pandemic.

Add in seasonal demand spikes around the holidays, and the pressure on producers and retailers becomes overwhelming.

Recovery Efforts and USDA Action

To address the crisis, the USDA launched a $1 billion plan, which includes:

• Boosting imports of table eggs (10 million cartons imported in March alone)

• Funding vaccine research ($100 million)

• Providing support for farmers affected by outbreaks

• Enhancing biosecurity to prevent future outbreaks

However, trade complications remain. Tariffs on imports from major producers like Mexico, Turkey, and Brazil could limit how much relief these imports actually offer.

Meanwhile, egg exports have been reduced, as U.S. producers focus on meeting domestic demand.

Consumers and Retailers: Adapting on the Fly

Faced with high prices and inconsistent stock, consumers are getting creative. Many have turned to backyard chicken farming for fresh, affordable eggs. Online communities have exploded with tips on raising hens, building coops, and caring for chicks.

Retailers are adapting too. Some are using eggs as loss-leader items, selling them at $4/dozen (while competitors charge $8) just to get customers through the door. It’s a risky strategy—one that sometimes leads to even more shortages.

Restaurants are also feeling the squeeze. The Montague Diner in Brooklyn, for instance, says eggs make up 40–50% of their menu ingredients. To stay afloat, they’ve had to cut costs in other areas while absorbing the egg price increases.

And in the background? The Department of Justice is investigating possible price fixing among major producers, adding legal tension to an already strained industry.

What’s Next for the Egg Industry?

While prices have cooled slightly, experts warn we’re not out of the woods. The USDA estimates that prices could still rise another 20% in 2025. Recovery is slow: it takes time to rebuild flocks, sanitize farms, and get approval to resume operations.

More outbreaks could set progress back by months, or worse. And even with vaccine research in motion, the virus is proving tough to control.

Still, March’s 10% rise in production and record-breaking imports show that the industry is actively fighting back. If efforts continue steadily and new outbreaks are contained, the hope is that by mid- to late-2026, egg prices and supply could stabilize.

Key Egg Industry Stats (as of June 14, 2025)

Metric	Value
Hens affected since Feb 2022	131 million
Hens culled in 2025	31 million hens + 2.5M pullets
Laying hens as of April 1, 2025	287 million (vs. 320M normal)
Peak egg price (Mar 2025)	$6.23/dozen
Price as of May 2025	$4.55/dozen
YoY price increase	41.5%
Egg imports (March 2025)	10 million cartons

A Fragile Recovery Ahead

The U.S. egg crisis is a case study in how disease, regulation, economics, and logistics can all collide to shake up a basic food item. While prices are no longer at their peak, they remain historically high—and the road to full recovery is still long and uncertain.

For now, consumers are paying more, buying less, and even building chicken coops in their backyards just to secure their breakfast staples. Retailers, farmers, and the government are working overtime—but the scrambled state of America’s egg industry is far from over.

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