A severe egg shortage has gripped the United States, pushing prices to unprecedented levels in early 2025. The average cost of a dozen eggs reached $4.95 in January, marking a staggering 15% increase compared to the previous year. This dramatic price surge vastly outpaces the general inflation rate of 3%, creating significant challenges for both consumers and retailers.
The root cause of this egg crisis lies in the devastating impact of the H5N1 avian flu outbreak. Since 2022, this highly contagious strain has necessitated the culling of more than 40 million egg-laying birds, severely disrupting the supply chain and causing widespread shortages in grocery stores across the nation. While economists predict a potential slowdown in price increases throughout the year, consumers continue to face significant challenges in both retail purchases and dining experiences.
Key Takeaways
- Egg prices have surged to $4.95 per dozen, representing a 15% increase in January 2025
- A widespread avian flu outbreak has decimated chicken populations, leading to severe supply shortages
- Major retailers have implemented purchase limits to manage dwindling egg supplies
Why Are Egg Prices Soaring?
Egg prices have reached unprecedented levels due to multiple factors affecting both supply and demand. Egg costs jumped 15% in January, with prices now reaching nearly $5 per dozen in many U.S. cities.
The primary driver behind these price increases is the devastating impact of avian influenza on commercial laying flocks. This highly contagious virus has decimated chicken populations across farms, significantly reducing egg production capacity. The process of replacing these laying hens is complex and time-consuming, creating a persistent supply shortage.
Prices have skyrocketed 170% since 2019, when consumers paid approximately $1.54 for a dozen eggs. Current market conditions have forced many retailers to implement purchase limits to manage inventory.
Two key factors are amplifying this supply crisis:
- Growing consumer preference for protein-rich diets
- Limited substitution options for eggs in cooking and baking
The average cost for a dozen Grade A eggs has now reached $4.95 in U.S. cities, setting new records. Many stores have begun restricting purchases to ensure fair distribution among customers.
Market analysts predict these elevated prices will persist while bird flu outbreaks continue affecting commercial flocks. The combination of supply constraints and steady demand creates significant upward pressure on prices, particularly as eggs remain an essential ingredient in both home cooking and commercial food production.
Retail Egg Purchase Restrictions
Major retailers across the United States are implementing egg purchase limits as prices continue to climb. Egg prices jumped 15% in January, leading many stores to establish buying restrictions.
Major Chain Policies:
- Walmart: Maximum 2 cartons of 60-count eggs
- Sam’s Club: 2-item limit at all 600 locations
- Target: Restrictions only in Hawaii stores
- Kroger: Select stores limit purchases to 2 dozen
- Giant Eagle: 3-carton maximum per customer
The price surge has affected restaurants too. The popular breakfast chain Waffle House now adds a $0.50 surcharge for each egg ordered.
Giant Eagle has taken additional steps by selling conventional eggs at cost price throughout their 470+ locations across five states. This decision helps maintain accessibility for customers in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia.
Consumer egg prices have risen dramatically from $1.54 per dozen in 2019 to $4.15 in 2024, marking a 170% increase. This significant price hike has forced retailers to balance inventory management with customer needs.
Trader Joe’s and other grocers are actively working with suppliers to maintain steady stock levels while keeping prices as manageable as possible. These restrictions aim to prevent hoarding and ensure fair distribution among all customers.
Many stores review their policies weekly and adjust purchase limits based on local supply conditions and customer demand patterns. The restrictions primarily affect larger carton sizes, with some flexibility remaining for smaller quantities.
When Will Egg Prices Drop?
Egg prices have surged 15% in January compared to last year, with current prices averaging $4.95 per dozen. The upward trend shows no signs of slowing, with projections indicating a 20% increase throughout 2025.
Price relief depends on two critical factors: controlling avian influenza outbreaks and replacing aging or infected laying hens with new stock. This process requires several months at minimum, with estimates suggesting 3-6 months before prices begin to stabilize.
Consumer demand remains strong despite rising costs. The approaching Easter holiday may drive prices even higher due to increased seasonal demand. Restaurant egg surcharges might eventually reduce consumption, potentially helping to stabilize prices.
Money-saving strategies for shoppers:
- Compare prices between different grocery stores
- Check weekly store circulars for deals
- Use cash-back credit cards for purchases
- Consider transportation costs when price comparing between stores
The Consumer Price Index data shows egg inflation is currently five times higher than the general U.S. inflation rate of 3%. For perspective, eggs cost around $1.54 per dozen in 2019, compared to today’s prices approaching $5.
Recent price tracking indicates steady increases across most regions, with some retailers implementing purchase limits to manage inventory. The combination of ongoing avian flu outbreaks and the time required to rebuild laying flocks suggests consumers should prepare for elevated prices throughout much of 2025.
