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Egg aisles aren’t cheaper for dozens these days. And it’s becoming a big problem before Easter holidays.
The manufacturer of Easter Egg Dye Kits is braceed for potential fallout if the egg shortage is not resolved before the April 20th holiday. For many companies specializing in these activity sets, egg dye kits and related products make up a significant share of annual revenue. A decline in sales could have a major impact on their final line.
“I think sales will be down,” said Ashley Phelps, founder and CEO of Color Kitchen, a plant-based baking decoration company. “We haven’t seen that yet, but I think it will probably happen.”
Wholesale egg prices have shrouded record levels, reaching $8.58 per dozen amid the domestic bird flu outbreak, according to global commodity data company Expana. More than 52 million egg-selling birds have died, with the national flock at just 280 million levels, according to Expana market reporter Ryan Hojnowski.
He noted that price increases have slowed consumer demand as retail eggs average around $6 or more. Additionally, many stores have implemented purchase restrictions, limiting the number of cartons customers can purchase at once.
The combination of inflated prices and limited availability could reduce the sale of eggs on Easter holidays, and ultimately affects the demand for egg dye kits.
Natural Earth Paint, a company that manufactures natural art supplies and craft kits for kids, usually sells between 40,000 and 50,000 egg dye kits on Easter holidays, according to founder Leah Fanning. So far, the company’s retail partners have only ordered 7,000 kits.
“It’s definitely a big drop,” Fanning said. Most buyers said they cited the lack of eggs due to smaller orders.
Fanning told CNBC that the egg dye kit has been a bestselling product of natural earth paint for 13 years and has maintained the company for the first eight years. Of the company’s over 40 products, the Egg Dye Kit remains an “absolute bestseller.”
She said that while the majority of Natural Earth Paint sales come from retailers, online sales usually recover about three weeks before Easter. This could potentially improve consumer sales in mid-March.
New York City supermarket signs are asking customers to limit egg purchases to one carton on February 13, 2025. The US avian flu epidemic has resulted in a significant drop in supply and increased egg prices.
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Color Kitchen says Easter items represent 20% of the total inventory of items from all other items, including Christmas icing kits.
Phelps said most retailers ordered these egg kits a few months before their holidays to make sure they were in stock right after Valentine’s Day. She said that retailers “incorporated a little less product this year,” given their sensitivity to the inflation environment.
“One other concern is that some of the grocery stories are recharged from the store for the products we’re trying to try out,” Phelps said. “So, if something already shipped to the grocery store isn’t on sale, that’s where we’re going to hit. It could be very bad.”
Phelps said 75% of the colored kitchen sales come from the shelves. The remaining 25% is from direct consumer sales on its website and other sites Amazon.
Walking on the eggshell
There are some companies that still hope to see solid business this Easter. The holiday will be held in late April and offers an additional three weeks of sales compared to last year.
Hey Buddy Hey Pal, the company that makes Eggmazing Egg Decorator, is a craft tool that spins eggs, so kids use markers to color and generate 85% to 90% of their annual revenue from Easter products. Last year, the company generated $14 million in sales with 22% sales from the previous year.
Curtis McGill, co-founder of Hey Buddy Hey Pal, said the retailer ordered fewer of its products this year. Still, the company said it expects another jump of 18% of its annual revenue, as it plans to sell between 600,000 and 700,000 egg decorators this year.
Even if the price of eggs boils, some dye kit makers believe that even if the number of eggs is used less, they will still decorate eggs as an essential tradition of choosing to skip.
Paas, the leader of the egg dye kit space, is hoping that some families will decorate less eggs this year, but many say they will still be part of the tradition.
“It’s just that kind of sticky tradition,” said Joe Ens, CEO of Signature Brands, which owns the iconic Paas brand from 140 years ago.
The company recently completed a survey of 120 consumers, finding that 94% plan to decorate their eggs on this holiday.
“And the reason is that, except that tradition is extremely important to consumers, if you really break down the costs of tradition, it’s probably the most affordable family tradition during the holidays,” he said.
Paas expects to sell more than 10 million kits this year. This is one of the most powerful pitches he said.
Michaels, an art and craft store chain, said he has already seen shoppers pick egg-inspired products. The company told CNBC that 43% of its scheduled Easter sales this year will be targeted at gypsum, plastic and craft eggs.
Michaels said certain craft egg kits designed to “match the traditional egg decoration experience” are selling nearly three times more than the company expected.
Similarly, Hey Buddy Hey Pal expects some families to choose to buy wooden eggs instead of real eggs. The alternatives are usually more expensive than real eggs, but they are an opportunity to keep the piece long after the holidays are over.
“There can be a lot of things happening at times, but we can continue to see the outbreak of avian flu and several different egg farms that were not affected,” McGill said. “It could get worse before it gets better. That’s not a prediction, but at this point… I’ll hold my breath until I get to April in 2004.”
Fix: This story has been updated to correct it based on updated information from Michaels. 43% of the scheduled Easter sales this year are for plaster, plastic and craft eggs. Previous versions mischaracterized the metric.
