Egg prices reached an unprecedented peak of $5.90 per dozen in February 2025, a steep climb from about $2.50 per dozen a year earlier. That rise follows intense monthly increases — roughly 15% in January and another 10% in February — marking the fastest and most dramatic change in retail egg costs in recent memory.
The outbreak of highly pathogenic avian influenza, commonly called bird flu, is the primary factor behind the surge. In 2024 the virus decimated commercial laying flocks, killing nearly 40 million hens and sharply reducing the nation’s supply of shell eggs. Because egg production depends on large, continuous laying flocks, the sudden loss of so many birds had an immediate and deep impact on available inventory and the ability of producers to meet consumer demand.
Beyond the direct effects of bird flu, a combination of other forces has amplified the price shock. Production expenses have risen across the board: feed, labor, energy and transportation all cost more than in previous years. These higher input costs make it harder for smaller and mid-sized farms to recover quickly and raise the baseline cost for eggs even as flocks are rebuilt. At the same time, demand for eggs has remained steady or increased in some segments — for home cooking, foodservice and industrial uses — creating a tighter supply-demand balance that pushes prices higher.
Market structure and concentration also shape how quickly prices can respond. The commercial egg industry in the United States is relatively consolidated; a handful of large producers and vertically integrated firms control a substantial share of supply. That concentration can intensify price swings when supply shocks occur, because major producers control the bulk of inventory and decisions about flock replenishment, production capacity and distribution. In this context, the Justice Department has launched an inquiry into whether some large producers may have engaged in behavior that artificially inflated prices during the crisis. Investigators are examining pricing practices and communications among companies to determine whether unlawful coordination or other misconduct played a role.
Industry groups and some major producers maintain that the surge in retail prices is the direct result of the avian influenza losses and related operational challenges. The American Egg Board, for example, points to the scale of the hen mortality and to logistical constraints in rehousing, restocking and transporting birds as the real causes of higher prices. Rebuilding laying flocks is not an instant fix: it takes months for pullets to mature and begin producing at full capacity, so even after the outbreak is contained, supply recovery is gradual.
Retail prices also reflect factors beyond farmgate costs. Retailers set shelf prices according to wholesale purchase costs, contract terms, promotional strategies and regional competitive dynamics. Where retailers face higher wholesale prices or limited inventory, those costs are passed to consumers. In some cases, local shortages or distribution bottlenecks produce particularly sharp price differences between regions.
For consumers, the immediate effect is a heavier grocery bill for a basic staple. Households that rely on eggs for protein, baking or meal preparation have felt the impact directly, and foodservice businesses — bakeries, restaurants and institutional kitchens — face higher operating costs that can translate into higher prices for meals. Price volatility also complicates menu planning and budgeting for food producers that use eggs as an ingredient.
Looking ahead, several factors will determine how quickly egg prices normalize. Controlling and eradicating outbreaks of avian influenza is the first priority; sustained biosecurity measures, robust surveillance and careful flock management will help limit further losses. The pace of flock rebuilding matters too: as young hens reach laying age and more birds come online, supply should improve gradually. Changes in feed and energy costs, consumer demand patterns and any regulatory or legal outcomes from investigations into industry behavior will also influence the timeline for price relief.
In the near term, prices are likely to remain elevated until supply can catch up with demand. Policy responses — including support for affected producers, guidance on restocking and industry oversight to ensure fair practices — can help speed recovery and protect consumers. Until those pieces fall into place and the industry regains production stability, shoppers should expect higher-than-normal egg prices compared with pre-crisis levels.