Shoppers stocking up on breakfast staples may have noticed a significant increase in their grocery bills, with eggs taking a leading role in the rising costs.

According to the Consumer Price Index, egg prices have soared by 36.8% compared to this time last year. The U.S. Bureau of Labor Statistics reports that the average price for a dozen Grade A large eggs reached $4.15 in December 2024, up from $2.51 in December 2023—nearly a $2 increase.

A primary driver behind this surge is the devastating impact of the recent bird flu outbreak. The Highly Pathogenic Avian Influenza (HPAI) has been a critical factor, directly or indirectly leading to the loss of over 20 million egg-laying hens in the last quarter of 2024, according to the U.S. Department of Agriculture. Farms with infected flocks are mandated to cull all birds, which has severely disrupted the egg supply chain.

Higher Prices Expected to Persist Into 2025

Adding to the strain on the industry are new cage-free egg laws, which went into effect in states like Michigan at the start of 2025. These regulations, stemming from amendments to Michigan’s Animal Industry Act in 2019, require that all shell eggs sold in the state come from cage-free housing systems. Additionally, the law prohibits the sale of eggs from hens that lack adequate floor space or are confined.

The combination of supply chain challenges and regulatory changes has led analysts to predict further price hikes. Estimates suggest the average price for a dozen large eggs could climb to nearly $5 by the end of 2025, potentially setting a record for the highest-ever recorded average price. In certain areas, such as California, prices have already reached nearly $9 per dozen.

The highest average price on record was $4.82 per dozen in January 2023. While prices temporarily eased to just over $2 later that year, the ongoing challenges facing the industry indicate that relief may not be on the horizon anytime soon.