Egg sales are expected to rise as the population grows and consumers demand enriched egg products.
New York, NY (PRWEB) July 12, 2014
The Chicken Egg Production industry has experienced steady growth over the past five years, buoyed by stable demand for industry products as well as the agricultural sector's supply management system. “Eggs are a relatively affordable staple for most families across Canada; as a result, per capita egg consumption generally grows in line with the size of the population,” according to IBISWorld Industry Analyst Will McKitterick. Furthermore, demand for new specialty egg products with enriched qualities, such as omega-3 eggs has risen dramatically. Consumers are also purchasing more varieties of ethically raised cage-free or free-range eggs. The combination of these factors has boosted industry revenue at an annualized rate of 2.6% over the period, including a 2.2% increase in 2014 to $1.2 billion.
The number of egg producers has shrunk over the past five years even as the industry exhibited steady revenue growth. Farming in Canada has become increasingly capital intensive. Egg producers are equipping their layer facilities with more technology to ensure the greatest yield for their investments. “This has led to an intensification of the industry, in which smaller farms are bought up and merged in order to achieve economies of scale,” says McKitterick. Larger farms can generate more revenue and are better situated financially to afford the constant technological upgrade necessary to survive in the industry. Nevertheless, industry operators have not consolidated at a rapid pace. While the number of farms has fallen over the period, Canada's unique supply management system has helped preserve some smaller operators that would have otherwise been edged out of business.
Chicken and egg producers can expect to maintain steady growth over the next five years. Year-on-year sales of eggs are expected to rise steadily as the Canadian population grows. Furthermore, as per capita disposable income increases, household consumers are likely to consume more processed egg products at home and at restaurants. Demand for specialty and ethically raised eggs is expected to continue to rise, providing even more demand for egg products. However, how well Canadian egg producers are able to capitalize on new demand trends will depend on the ability of the state and provincial egg marketing boards to change regulatory laws to enable more flexible production models.
For more information, visit IBISWorld’s Chicken Egg Production in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry primarily raises chickens for egg production. The eggs produced may be sold for use as table eggs or hatching eggs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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