Reformulating for resilience: managing egg and meat costs

Two ingredients under particular pressure are eggs and meat, which play essential functional roles across bakery, ready meals and processed meat products.

Eggs are a cornerstone of many bakery and dessert formulations, contributing to structure, aeration, emulsification and colour development. However, egg supply and pricing have been increasingly volatile in Australia and New Zealand, with egg prices increasing by up to 27% over the past two years (1).

The main factors contributing to this supply and price volatility include avian influenza outbreak, rising feed cost, and shifting consumer preference toward free-range eggs. Together, these pressures are putting pressure on manufacturers to explore egg reduction and substitution strategies to help manage ingredient cost without compromising on quality.

However, reformulation challenges vary depending on product type, level of replacement, and whether whole egg or egg white powder is being replaced. Eggs perform multiple critical functions and making careful ingredient selection is essential, particularly in bakery and dessert applications.

Similar pressures are also evident in meat formulations across Australia and New Zealand. According to the Australian Bureau of Statistics, prices for meat and seafood rose 3.9% in the 12 months leading up to January 2026 due to strong overseas demand for Australian red meat. Rising raw meat costs, combined with increasing health awareness, environmental concerns, and ethical considerations around animal welfare, are reshaping product development strategies. Manufacturers are increasingly exploring reformulation strategies within processed meat formulations, including reducing or partially replacing meat. 

Manufacturers face a clear choice: stand still or reformulate using functional ingredients that maintain product quality while improving cost efficiency and sustainability.

To support manufacturers in navigating these reformulation challenges, a combination of functional ingredients can be used to replicate the role of eggs and meat in food systems. IMCD supports customers in egg and meat reduction or replacement across a wide range of applications, leveraging advanced technologies in:

By collaborating with IMCD, manufacturers gain tailored solutions that often combine multiple ingredients to replicate the functional and sensory properties of eggs and meat, ensuring products meet market expectations while controlling costs.