The Reasons Chicken Is So Cheap Right Now

Chicken prices at grocery stores are currently low. This article explores the economic factors contributing to this affordability.

Factors Influencing Chicken Supply

The abundance of chicken in the market, a primary contributor to lower prices, stems from production efficiencies and favorable input costs. Advancements in poultry farming have significantly enhanced output through genetic selection for faster growth rates and increased meat yield. Technological innovations in housing and automation also optimize bird welfare and growth conditions, allowing producers to raise more chickens in less time and increasing overall supply volumes.

Production costs for chicken farmers have also seen some relief. Feed, a substantial portion of expenses, has experienced price moderation. Data from late 2024 and early 2025 shows a notable decrease in corn and soybean meal prices compared to the previous year, resulting in lower overall feed costs for poultry producers. This reduction enables producers to maintain profitability even at lower selling prices.

Expansion in processing capabilities further supports the increased supply. The U.S. Department of Agriculture (USDA) is investing nearly $110 million through programs like the Meat and Poultry Processing Expansion Program (MPPEP) and Local Meat Capacity (Local MCap) Grant Program. These investments strengthen supply chains and boost independent processing capacity, including building new facilities and upgrading existing ones, facilitating higher overall output and bringing more chicken products to market.

Despite localized outbreaks of highly pathogenic avian influenza (HPAI), overall production volume has remained robust. In 2024, 56 commercial flocks were affected, leading to the culling of approximately 21 million birds. U.S. chicken production increased by 3.2% in early 2025, driven by a higher number of birds processed and increased average weights. This indicates the industry’s capacity and efficiency have largely absorbed these disruptions, preventing widespread supply shortages that would drive prices upward.

Frozen poultry stocks in cold storage facilities reflect this dynamic. As of October 2024, total frozen poultry supplies were down 6% year-over-year, but total chicken stocks were up 4% from the previous month. Increased broiler production has helped maintain frozen poultry stocks throughout 2024. This suggests that despite ongoing demand, the supply chain effectively prevents scarcity from pushing prices higher.

Factors Influencing Chicken Demand

Consumer behavior plays a significant role in market pricing, and shifts in demand contribute to current chicken price levels. A general increase in consumer focus on protein intake has been observed, with 61% of consumers reporting increased protein consumption in 2024. Animal proteins, including chicken, continue to be a preferred choice due to their taste, nutritional value, and versatility. Chicken’s affordability also positions it as a staple protein source for many households.

Economic conditions, particularly inflation, influence consumer purchasing decisions. While overall food prices have seen substantial increases, chicken prices were one of the few categories that decreased in the past year, as of June 2024. This makes chicken an attractive option for consumers seeking value amidst rising household budgets. Many individuals are adjusting their spending habits, prioritizing more affordable protein sources and reducing discretionary expenses like dining out.

The competitive pricing of alternative proteins also impacts chicken demand. Compared to beef and pork, chicken remains a more economical choice. While beef prices increased significantly, boneless chicken breast prices were projected to decrease in 2024. This price disparity can steer consumer demand towards chicken, particularly for those looking to manage food expenses.

Demand from the foodservice sector has shown resilience and growth. Sales for chicken menu items in some foodservice outlets increased in 2024. Chicken-focused restaurant concepts experienced faster growth than burger-focused ones, indicating a strong and expanding market for chicken in prepared meals. This sustained demand from restaurants and other bulk purchasers helps absorb a substantial portion of the chicken supply.

Market Dynamics and Retail Pricing

The interplay between supply and demand, coupled with specific retail strategies, directly translates into the observed low prices for consumers. Competition among grocery chains and food retailers is a significant driver. Chicken is frequently used as a “loss leader,” a product intentionally sold at a reduced price, sometimes even below cost, to attract customers. This strategy encourages shoppers to purchase other, more profitable items once inside the store.

Large retailers like Costco exemplify this approach, reportedly losing between $30 million and $40 million annually on their rotisserie chickens, sold at a consistent low price for many years. The strategic placement of these promotional items, often at the back of the store, encourages customers to navigate through other aisles, increasing the likelihood of additional purchases. This tactic leverages consumer psychology to boost overall sales and customer loyalty.

Inventory levels also play a role in retail pricing. Recent reports indicate robust demand is managing cold storage inventories effectively. Although total frozen poultry supplies were down year-over-year in late 2024, total chicken stocks showed a month-over-month increase. This suggests that rather than an overwhelming surplus forcing prices down, the market efficiently absorbs the available supply, and retailers strategically price chicken to maintain turnover and attract customers.

Global market influences, specifically changes in export demand, can impact domestic supply. While overall U.S. chicken export value is projected to increase, the volume of broiler exports remained at historically low levels in early 2024. Increased competition from other poultry-exporting nations, such as Brazil, has affected the competitiveness of U.S. broiler meat in international markets. When export demand is challenged, a larger portion of the chicken supply remains within the domestic market, contributing to overall availability and potentially influencing domestic pricing.