Egg Shortages Boost Demand for Plant-Based Egg Startups

Egg prices have been climbing sharply, and in many places shoppers are struggling to find cartons on store shelves. The spike is largely tied to supply disruptions and the ongoing spread of avian flu, which has affected poultry farms around the world. While consumers may be frustrated by the situation, one group is quietly benefiting: startups building alternatives to traditional eggs.

As egg supplies tighten and prices rise, interest in plant-based egg substitutes is growing. For companies developing these products, the current moment could open the door to new customers who might not have considered alternatives before. With supply concerns making headlines, startups in the alternative protein space suddenly look well-positioned to attract attention.

There’s already a growing list of companies experimenting with egg replacements. Data from the startup ecosystem shows several well-funded ventures exploring ways to replicate the taste, texture, and functionality of eggs without relying on chickens.

One of the most heavily funded players is The Every Co., a San Francisco startup previously known as Clara Foods. The company has raised more than $240 million to date to develop proteins created through fermentation. Its product, called Every Egg, is made using yeast-derived egg protein and is designed for use in restaurant dishes. Although the company’s last major venture funding round took place in 2021, it received additional support in December through a grant from the United States Department of Defense. The funding will help the company study manufacturing feasibility as part of a broader initiative to strengthen food supply chains against risks like animal disease outbreaks.

Another rising name in the egg-alternative space is Onego Bio, based in Helsinki. The startup, founded about three years ago, raised more than $55 million last year. It uses precision fermentation technology to create egg white proteins without animals, aiming to supply ingredients to food manufacturers.

Several smaller startups are also entering the market. Berlin-based Neggst focuses on plant-based versions of familiar egg styles, including boiled, poached, and sunny-side-up alternatives. Meanwhile, Paris startup Yumgo raised $3.1 million in a Series A round last summer. Its products are aimed at cooks and bakeries looking for egg substitutes, especially for baked goods where eggs are often a key ingredient.

Some companies working on alternative proteins have expanded into egg replacements as well. One example is Perfect Day, a Berkeley, California-based startup that has raised more than $800 million so far. Known for producing dairy proteins through fermentation under the brand ProFerm, the company also markets the ingredient as a potential replacement for eggs in certain food applications.

Another notable player is Eat Just, a San Francisco company that has raised around $465 million over the years. Its plant-based lineup includes the well-known “Just Egg” products, such as a liquid egg substitute for omelets and breakfast burritos, as well as a folded version that can be heated in a toaster.

With egg prices reaching some of their highest levels in years — and shortages appearing in many grocery stores — startups offering alternatives may find it easier than ever to pitch their products. Beyond the sustainability and animal-welfare arguments they typically promote, plant-based eggs might simply become the most accessible option for some consumers.

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