Egg prices decrease, bacon prices approach 12-month peak
In the United States, the price of pork bacon has reached record highs, with the average cost of a pound reaching $6.61 in May 2025. This surge, which represents an 18% increase from May 2024, can be attributed to a complex interplay of factors, including tariffs, wages, supply and demand dynamics, and specific regulatory impacts such as California's Proposition 12.
Tariffs have played a significant role in inflating pork prices by affecting cost structures and international trade dynamics. With growing global demand for pork products, producers are finding it challenging to balance exports with U.S. supply needs, putting pressure on domestic prices.
Rising wages across the supply chain, from pig farming to processing and distribution, have also added to production costs. This labor cost escalation is reflected in the pricing of pork bacon, contributing to the overall price surge.
Despite high hog inventory levels reported in early 2025, the balance of supply and demand is intricate. While supply is growing, strong consumer interest and export demands sustain firm prices. Seasonal factors may temporarily temper supply growth, but demand remains resilient, supporting higher pricing.
California's Proposition 12, which mandates minimum living standards for farm animals, including pigs, has contributed to increased production costs for suppliers serving the California market. Compliance costs for improved animal housing and welfare are passed on to consumers, with California being a significant enough market to influence national prices.
Higher feed prices, energy costs, and transportation expenses have further driven up the cost of raising pigs and processing pork bacon. Combined with tariffs and labor costs, these factors create a cumulative effect on retail prices.
Jim Eadie, the founder and publisher of Swineweb.com, predicts that the high prices for pork bacon are likely to persist. He attributes the high prices to various factors, including tariffs, rising wages, product supply and demand, and the cost of producing a pig.
Interestingly, while the price of pork bacon has been on the rise, egg prices have been on a downward trend in May. However, despite this recent decline, egg prices are still 41% higher than they were in May 2024. The price data from NIQ includes figures from both fresh and processed meat departments, showing that prices for a pound of bacon vary depending on location, with Dallas having a price of $6.53 and San Diego having a price over $8.
In conclusion, the current high prices for pork bacon, along with the lingering effects of higher egg prices, are a result of a multifaceted scenario that requires careful consideration of various economic and regulatory factors. Consumers and restaurants nationwide are feeling the impact of these record-high prices for bacon products, such as bacon-egg-cheese sandwiches.
Finance experts are now analyzing the impact of the surge in pork bacon prices on people's lifestyle and food-and-drink expenses. For instance, a popular breakfast item like a bacon-egg-cheese sandwich might see a significant increase in cost due to the rise in pork bacon prices. Businesses in the food-and-drink sector are hence scrambling to adapt their recipes to minimize the impact on their bottom line, as the high prices are likely to persist in the near future. In the meantime, home cooks might consider exploring alternative recipes or switching to cheaper protein sources in their food-and-drink choices to maintain their financial stability.
