According to data from SPINS, LLC, the U.S. shell egg market accounted for approximately $9.4 billion in retail sales for the 52 weeks ended December 25, 2022.

With a broader perspective, Vital Farms refers that this market grew at a Compound Annual Growth Rate (CAGR) of 10.5% between 2018 and December 2022.

Vital Farms is an Austin, Texas, U.S.-based company specializing in the promotion of pasture-raised poultry and the sale and distribution of pasture-raised eggs.

This has relatively low household penetration of 7.0%, compared to shell egg category penetration of approximately 98%, which offers a significant long-term growth opportunity for its business.

According to SPINS data, the U.S. retail market for pasture-raised eggs accounted for about $428.0 million in retail sales during the 52 weeks ended Dec. 25, 2022, and grew at a 32% CAGR between 2018 and Dec. 2022.

Meanwhile, the specialty egg market (including pasture-raised, free-range and cage-raised) accounted for approximately $1.7 billion in retail sales during the 52 weeks ended December 25, 2022 and grew at a CAGR of 15% between 2018 and December 2022.

Egg Market

Vital Farms operates in the large and growing U.S. natural food and beverage industry.

According to the company, consumer awareness of the negative health, environmental and agricultural consequences of processed foods and factory farming standards has led to increased demand for ethically produced foods.

Vital Farms believes this trend has had a significant impact on the growth of the natural foods industry, which is increasingly penetrating the U.S. food market as retailers respond to consumer demand.

The company also believes that increased demand for natural foods and a willingness to pay more for brands focused on transparency, sustainability and ethical values will continue to be a catalyst for its growth.