Can Japan Crack Its Egg Problems?

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Happy Tuesday Market Shakers. Today we embark on a new series about an alternative to one of the world’s most consumed foods: the chicken egg.

Chicken egg alternatives are one of the fastest-growing categories of alternative protein. But how much potential do they have here in Asia, a region accounting for over half the world’s egg production?

In this article, we lay down the context for this series by exploring the main challenges facing chicken egg production and consumption. We’ll conclude by reviewing how the challenges translate in Japan. 

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We recently wrote our Alt Protein Primer - a series of articles about how alternative proteins are made. We aimed to simplify the complex topics of alternative proteins and the technologies used to make them. If you have a second, please tell us what you thought about the series:

Eggs: a fragile pillar of our food system

If you had to personify the egg, Jekyll and Hyde would be a fitting character. No other food product is as divisive. It’s lauded as a protein-rich, affordable superhero. At the same time, it’s derided as the super-villain poisoning us all with lethal doses of cholesterol. 

However you split it, eggs are one of the most consumed foods on the planet. A global average shows we each consume 161 eggs per year. But high-consuming countries like Mexico, China and Japan consume well over 300 eggs per person, per year. 

In 2021 the global population ate an estimated 46 billion kilograms of eggs. For perspective, that’s the same weight as 140 Empire State buildings. In lay terms: a lot of eggs.

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There are plenty of reasons to love eggs. Eggs are affordable, easy to produce, and high in protein and other nutrients. They are also an important functional ingredient thanks to their binding properties. 

The global egg market is worth $110 billion dollars in 2022. It is expected to grow at 2.2% CAGR up to 2027. Over 4 million people worldwide rely on the egg industry for their livelihoods.

But, eggs are also not all they’re cracked up to be. From health concerns to unethical production practices, there are compelling reasons to reduce egg consumption around the world. Let’s review them below!

Why should we consider cutting down our egg intake?

Ethical Concerns

Animal welfare has long been a major reason for reducing or quitting egg consumption.

Some of the practices used in egg farming are notoriously cruel. Battery farming, where chickens are crammed into packed cages, has been heavily scrutinized. In such conditions, chickens have approximately 500 square centimetres of space. This is less than enough to stretch their wings or perform other natural behaviours such as nesting and perching. In human terms, think of living your life in an overcrowded elevator. 

Except for bans on battery farming in the EU in 2012, most of the world still keeps chickens in battery cages for egg production. For example, in 2020, 74% of the national laying flock of North America lived in cages.

It’s worth noting that countries and businesses around the world are actively taking steps to transition away from battery farming. Over 400 businesses in the U.S. have committed to only using cage-free eggs by 2026. Australia is taking steps to completely transition away from battery farming by 2036. Companies and organizations in Asia are also working to make the region’s egg supply more ethical.

Some lesser-known practices than battery farming are equally harsh. Male chicks are often culled because they are superfluous to the egg production process for example. This results in the death of 600 million male chicks each year which cannot be used for meat. 

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“Forced moulting” is another ethically-questionable technique used in parts of the egg industry, especially in Asia. As winter approaches, birds' natural egg production decreases and they lose feathers. “Forced moulting” involves depriving birds of light and nutrition for days to force their moulting cycle. The process increases egg production but causes physical and mental stress to hens, sometimes resulting in death. 

Sustainability concerns

Eggs, compared to other animal foods, have a low carbon footprint. 2.2KG of Co2 is emitted per dozen eggs according to recent research, similar to dairy production and considerably lower than beef, pork and lamb footprints. Yet poultry is the fastest-growing livestock sector, so it’s essential to implement sustainable practices now for sustainable growth.

Studies into the exact carbon footprint of industrial egg production pinpoint feed as the biggest GHG contributor. Replacing imported soya-based feed with locally produced feed can help reduce eggs' carbon footprint. Some UK supermarkets are already producing carbon-neutral eggs by feeding their chickens with feed made from insects that have been fed on food waste from stores.

Health Concerns

What’s the crack with eggs and health? Are they healthy? Are they unhealthy? 

Cholesterol Controversy 

The conventional debate about chicken eggs focuses on high cholesterol content versus high protein and vitamin content. 

Some studies suggest that eggs increase the risk of heart disease because they are high in cholesterol. A recent study found that for every additional 300mg of cholesterol a person consumed, regardless of the food it came from, they had a 17% increased risk of cardiovascular disease, and 18% increased risk of all-cause mortality.

However, no studies have conclusively proved a link between egg consumption and heart disease. Many studies have shown the opposite, that egg consumption may be beneficial for heart health. What’s more, the potential benefits of eggs, such as high amounts of vitamin D and choline, a compound which may protect us against Alzheimer's, may outweigh the risks.

Allergy Alert

What is for sure is that eggs are a major allergen for children. An estimated 2% of all kids have an egg allergy. Egg allergies affect quality of life, and in 28% of cases can cause severe reactions. 

Egg allergies are a serious worry for kids and their parents. From baked goods to restaurant dishes, eggs are commonly used functional ingredients. A simple family trip to a restaurant can become fraught with anxiety and stress from ensuring that menu items are egg free. 

Animal born diseases

Cases of Avian Flu (“Bird-flu”) are increasing globally and pose a major challenge for the poultry industry. Infected chicken flocks are generally culled en masse; often inhumanely. 

Antibiotics use in poultry farming has been linked to Antimicrobial resistance. Efforts to reduce the use of antibiotics have, however, been linked to an increase in the spread of infectious diseases. Antibiotics are used for several reasons such as egg production enhancers in laying hens for example.

With reports that COVID-19 originated in livestock before being transferred to humans, consumers are more sensitive to animal-born diseases. Reports of Avian flu and antibiotic resistance in poultry are likely to affect purchase rates and even drive consumers to seek alternatives.

Solutions for making eggs more sustainable

With a flock of problems facing them, extraordinary solutions are being hatched to

make eggs more ethical and sustainable.

Free-range chicken farming is the solution of choice for ethical egg farming. Giving chickens the space to roam in natural conditions and eat natural - non-GM foods means a better quality of life for the birds and a better quality product. 

Free-range chicken farming has been prevalent in industrialized economies in North America and Europe since the 90s. It’s generally agreed that free-range and “cage-free” farming presents a considerable improvement in the quality of life of egg-laying birds. Though definitions and requirements for these kinds of ethical farming differ by country and recent investigations suggest the practices are less beneficial for chickens than previously thought. 

There are also companies hatching more novel solutions for the egg industry.  

To address the issue of male-chicken culling, Israeli company EggXYT uses gene editing to identify male eggs in ovo, rerouting them to the food system before they are hatched and culled.

The EVERY Company is one of a few companies working to create egg protein without involving chickens. The company announced in 2021 that it had cracked the production of egg white using precision fermentation.

Some startups are working on solutions to improve the conditions in which chickens are conventionally farmed. A Scottish company Greengage Lighting Ltd has developed a lighting system for hen farming that can mimic the light required for poultry to grow consistently. The result is that chickens have fewer health conditions caused by stress and are more likely to perform natural behaviours, such as “perching”, which conventional commercial farming conditions prevent.

Last but not least, there are a growing number of companies that are creating egg substitutes from plant-based sources. JUST, Nabati Foods, Float Foods and Umami United to name a few. We’ll cover the activities of alt-egg innovators in detail in the next few weeks! 

The state of the egg industry in Japan

When it comes to eggs, Japan is a big consumer: the average per capita egg consumption is 337. Consumption of eggs is divided evenly between shelled eggs and egg products, such as mayonnaise and rolled-egg omelettes. 

Japanese consumers enjoy eggs in a wide variety of dishes. From simple fried and scrambled to local dishes such as dashi-maki tamago (rolled egg omelette), or popular breakfast dish tamago-kake gohan (raw egg mixed into hot rice). Raw eggs are a big part of Japanese cuisine, used in many dishes.

Unfortunately, more than 90% of eggs consumed in Japan are battery farmed. According to the animal rights website PETA the conditions that Japanese chickens are kept in are highly unethical. 

Despite this, awareness amongst Japanese consumers about animal welfare issues, including those relating to egg farming, is low. There are a few cage-free products available on the market targeting ethically minded customers. Recently, demand for such products may be rising. Japan’s largest supermarket chain AEON announced in September 2022 that they are rolling out cage-free eggs across 390 of their stores nationwide.

This year we’ve also seen a rise in consumers seeking chicken-free eggs. In a similar way to meat alternatives, Japanese consumers are driven to seek egg alternatives for health reasons. Particularly in the case of allergies, with eggs being the most common trigger in Japan. When Kewpie launched an egg alternative in 2022, they were reportedly swamped with requests from customers wanting to know more about the products.

In addition to allergens, there are reasons to be concerned about antimicrobial resistance in Japanese chickens. A report released in 2018 by the Japanese government found over 50% of domestic chickens that were tested contained drug-resistant bacteria. The report pointed to the use of antibiotics in chicken feed as a key reason for this. Research from the Netherlands has confirmed that antibiotic resistance in chickens can transfer to eggs also.

Japanese consumers remain hungrier than ever before for eggs, however. To meet demand and overcome the challenges of conventional eggs, companies are turning to alternatives. Over the past year, several such products have cracked the Japanese market. Not only big players like Kewpie and Kagome, but also startups such as Umami United have been hatching egg innovations.

It’s important to note that this is just the first flutter of activity for Japan’salt-egg industry. But, given the prevalence of eggs in Japanese cuisine and concern over allergies, eggs are an alternative with potential in Japan.

That’s all folks

Thank you for reading today’s introduction to some of the challenges facing the egg industry around the world and in Japan. We hope this provides useful context as we explore the emerging market for alternative eggs over the next few weeks.

See you next Tuesday!

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