Cage free challenges and potential solutions

The transition to cage-free egg production in Asia faces significant hurdles such as the lack of legislation for laying hen welfare in most countries, and the lack of transparency on implementation in the region. According to the Asia Cage-Free Benchmark Report, there is currently no legal framework to protect laying hens across much of the region. An estimated 89.2% of commercial egg production is from conventional cages in the Asia-Pacific region, with just 1.4% of hens in free-range and organic systems (Guyonnet, 2022). This lack of availability makes it difficult for businesses to fulfil their cage-free commitments. However, the Asia-Pacific market is the fastest-growing cage-free market due to increased demand, product innovation, and increased disposable income.

According to De Luna et al. (2022), who surveyed egg producers in China, Japan, Indonesia, the Philippines, Malaysia, and Thailand, key barriers to cage-free egg production cited by producers included lower profitability compared to caged systems, limited land availability and high land costs, and higher production costs, making cage-free systems less financially viable in the short term. However, 65% of respondents believed cage-free production was feasible in their country, and industry and market development, increased sales, and higher price points were identified as key solutions for overcoming these barriers in Asia (De Luna et al., 2022).

Despite these challenges, the EggTrack 2024 data shows notable progress in cage–free implementation among selected companies in the APAC region. This analysis excludes companies that had already achieved 100% implementation in previous years and those that did not report data last year. Between 2023 and 2024, the implementation rate increased by approximately 9.9 percentage points, while the year-on-year (YoY) across reporting companies.

However, progress is uneven across the region. While some companies have demonstrated strong growth, others have experienced slower transitions. The overall pace of transition remains inconsistent, with many businesses still struggling to scale up implementation.

Corporate responsibility and the role of business

With no legal requirements in place for laying hens in most of Asia, corporate accountability is essential for accelerating progress. Companies must develop robust policies for cage-free commitments, incorporating clear timelines, both regional and global targets, and metrics for tracking progress. Transparent reporting practices are critical and should include annual updates, regional breakdowns, and clear progress indicators. Companies adopting cage-free credits are encouraged to report both the physical percentage of cage-free eggs and the use of cage-free credits. Additionally, they should have a clear strategy to ensure that reliance on credits decreases year-on-year as cage-free eggs become more widely available. Reporting clearly and consistently sends a strong market signal of a company’s commitment and interest in driving change, fostering accountability and encouraging progress across the supply chain.

It is essential for companies to boost conversion by supporting producers in taking steps toward cage-free systems. Providing guidance, resources, and collaboration opportunities can make this transition more achievable and impactful. Transitioning to cage-free systems is more than a policy change, requiring industry-wide support.

Global commitments drive change

Many global food companies have successfully transitioned to cage-free systems in Europe and North America, but progress in APAC has lagged. While companies like Marriott, Compass Group, and Domino’s (Australia & New Zealand) have made cage-free commitments, implementation remains slow, and several major brands have yet to publicly disclose any data on their progress in the region. Global companies must take urgent action; Asia accounts for the majority of land animal production worldwide, reinforcing the urgency of initiatives that drive systemic change and reshape the production landscape in this region.

The need for comprehensive, enforceable commitments is essential. Companies that fail to act risk falling behind as consumer awareness, regulatory discussions, and market trends continue to drive demand for higher welfare products.

Moving forwards to a cage-free future

Compassion is committed to supporting companies on their journey toward improved animal welfare. In 2025, our focus will be on knowledge-sharing, fostering collaboration, and driving collective action to accelerate the transition to cage-free systems. We will provide practical guidance on policy development, transitioning to higher welfare production, and supply chain collaboration, ensuring companies can navigate this transition smoothly.

Our goal is to help companies meet their commitments while driving meaningful progress for animal welfare across the APAC region. To support this, we offer resources such as our newly launched 'Laying Hens The business case for a cage-free transition', which highlights the tangible benefits of prioritizing animal welfare.

For more information on how our Food Business programme can support your initiatives and help embed farm animal welfare into a future-fit food system, please contact us.

Slow progress in China

Progress towards implementing 2025 cage-free commitments in China has been slow. For example, while Aldi has committed to being cage free (on shell eggs only) by 2025, the retailer has not yet reported any progress in China.

Currently, cage-free egg production accounts for only 10% of China’s annual output (which is over 600 billion eggs; FAO, 2022), According to the Lever China 2024 update, the number of companies committing to sourcing 100% cage-free eggs in China has indeed increased significantly, growing from around 50 companies in 2020 to nearly 150 by 2023.

The term “cage-free” (非笼养) is not commonly used in China’s market at present, and there may be a lack of awareness of what “cage-free” means; in a survey by FAI Farms and IQC in 2020, 80% of respondents reported being unsure of what “cage-free” eggs are and do not recognise the value of cage-free production (The Poultry Site, 2022). Consumers tend to have a greater focus on things like food safety and price. Cage-free eggs can cost up to three times as much as caged eggs, and consumers may not be incentivised to pay more for higher welfare products. This may be due to a lack of education, clear labelling and messaging on pack, and on marketing the higher welfare attributes of cage-free eggs. (Yang, 2011; The Poultry Site, 2022; reviewed in Chen et al., 2023)

Currently, China does not have legislation directly addressing animal welfare, but industry standards are being published, and certified organizations, along with local and international NGOs, are actively engaging in the market. Meanwhile, renowned local egg producers, such as Sun Daily and TianChengMuYuan, are starting to adopt cage-free systems. Compassion’s Good Egg Award winners, TuDaMa and Coconut Grove Eggs, have both made significant cage-free commitments, with a production capacity of 500,000 birds.

In 2024, Compassion in World Farming promoted 11 award-winning companies on JD.com, China’s second-largest e-commerce platform, that sell cage-free products and assisted JD in formulating platform cage-free access criteria. This initiative provides Chinese consumers with the opportunity to better understand the concept of “cage-free” and access these products for purchase.

While progress among international brands promoting cage-free practices in China has been relatively slow in recent years, we have seen some positive developments in 2024 and are hopeful that this trend will continue to accelerate in 2025.