Egg prices have finally taken a turn in a direction shoppers have been hoping for—down. After months of record highs and supply disruptions, the cost of a dozen eggs has plummeted in just a matter of days. While this might seem like welcome relief at the checkout line, the reality is more complicated.
Wholesale markets have seen significant declines, and supply levels are rebounding. But that doesn’t mean consumers are automatically seeing cheaper eggs at the grocery store. Retailers are adjusting cautiously, keeping prices higher than expected despite the sharp drop in wholesale costs.
So, what’s behind the sudden price shift? And will grocery stores follow suit? The latest Consumer Price Index (CPI) report, World Agricultural Supply and Demand Estimates (WASDE) report, and USDA Agricultural Marketing Service (AMS) Egg Markets Overview reveal a market in transition, one that may not return to pre-inflation norms anytime soon.
Egg Prices Have Dropped Sharply—But What’s the Catch?
Egg prices, which hit a record high of $8.17 per dozen in early March 2025, have since dropped rapidly to $4.90 per dozen within a week, marking one of the sharpest declines in recent history. While this might signal relief for consumers, it doesn’t necessarily mean grocery shoppers will immediately see prices return to normal.
According to the USDA Egg Markets Overview, wholesale prices for large cartoned shell eggs in New York fell to $4.78 per dozen, reflecting a $2.40 decline compared to earlier weeks. National egg inventory has grown by over 4%, and major retailers are now seeing stabilized supply, unlike earlier in the year when shortages were widespread.
However, retailers have been slow to pass these savings on to consumers, citing concerns over maintaining inventory and potential fluctuations in supply. While the wholesale market is showing relief, retail prices remain unpredictable.
February CPI Report–What the Numbers Say
The February 2025 CPI report highlighted that egg prices were a major driver of food inflation. Prices rose 10.4% in February alone, while year-over-year costs climbed 58.8%, far outpacing the 1.9% increase in the overall food at home index. However, more recent data suggests a sharp decline in prices, with retail egg prices dropping from February’s high of $8.17 per dozen to $4.90 per dozen in early April.
While this is promising, grocery stores are taking a measured approach before lowering prices, waiting to see if wholesale declines hold steady rather than immediately adjusting retail prices. Stores are still waiting to see if wholesale declines hold steady before making broader adjustments at the consumer level.
The WASDE Report Confirms Supply Is Stabilizing
Even with some movement in wholesale prices, the March 2025 World Agricultural Supply and Demand Estimates (WASDE) report shows that egg production is beginning to recover.
Additionally, feed costs remain stubbornly high, with corn and soybean meal prices elevated, adding financial strain for producers. While supply is improving, production costs remain a factor that could prevent a full return to pre-inflation pricing in the short term.
The ongoing transition to cage-free egg production in states like California and Massachusetts is also a factor in pricing, limiting how quickly the industry can adjust to demand shifts.
Why Did Egg Prices Fall—And What’s Next?
A combination of improved supply, lower wholesale costs, and declining demand following peak pricing has contributed to the drop. However, while prices have fallen, other pressures still exist.
According to the Animal and Plant Health Inspection Service (APHIS), 12 million egg-laying hens were removed from production in February 2025 alone due to the ongoing avian flu outbreak, primarily egg-laying hens. This means that more than 35 million egg-laying hens have been taken out of production so far in 2025, on top of the 31 million hens already lost earlier in the year. These losses had significantly impacted production earlier in the year, but as flock sizes increase, egg supply is gradually stabilizing, allowing for a gradual return to more typical production levels.
Meanwhile, the DOJ has launched a civil antitrust probe into potential price manipulation by egg producers, further complicating the pricing landscape. The investigation is looking into whether major egg suppliers artificially inflated prices during the shortages, a factor that could influence market behavior moving forward.
How Shoppers Are Adapting to the Drop in Egg Prices
With egg prices now declining, shoppers are adjusting their habits once again. For months, high prices led many to cut back on eggs, seek out alternatives, or change how they used them in daily meals. Now, with costs dropping, the question remains: will consumers return to their old habits, or has the past year permanently changed how people view eggs as a grocery staple?
Some households that turned to egg substitutes, like plant-based alternatives or powdered eggs, may find themselves sticking with these options even as fresh eggs become more affordable again. Others who reduced egg-heavy meals at home are slowly reintroducing them, particularly in baking and breakfast routines. However, the period of record-high prices seems to have changed how many consumers think about eggs—what was once considered one of the most affordable proteins has, at least temporarily, lost that reputation.
For many, the shift has also been psychological—after months of eggs being a luxury item rather than a household staple, shoppers may be more cautious in their purchasing habits moving forward. Eggs are back on the table, but consumer behavior will ultimately dictate whether demand returns to pre-inflation norms or if the past year has created a lasting shift in how people shop, cook, and eat.
Will Egg Prices Keep Dropping?
The short answer: Prices have already begun to fall.
The USDA now projects that egg prices will continue to decrease in the second quarter of 2025, reflecting the improving supply situation. While volatility remains a factor, and production costs could keep prices from falling too low, the worst of the pricing spikes appears to be over.
For now, consumers should continue to monitor USDA reports for further developments, but egg prices are finally showing signs of stabilizing—just not at pre-2024 levels quite yet.