The decision builds on the recent launch of its RSPCA Assured barn egg pilot across 35 stores.
Iceland committed to phasing out eggs from caged hens in 2016, but earlier this year it confirmed that supply chain disruption and the cost-of-living crisis made the original 2025 target unachievable.
Iceland said the new 2027 timetable reflects its long-term goal to offer only cage-free eggs while protecting access to quality food for families across the UK.
Stuart Lendrum, director of product, process and sustainability at Iceland Foods, said: “We’ve always been honest about the challenge of balancing improved animal welfare with the urgent need to help families through the cost-of-living crisis. That’s why we never stopped offering free-range eggs, and why we introduced barn eggs as an affordable additional higher welfare option.
“Now, after months of work with our suppliers, we’re pleased to set a new timeline delivering investment and increased capacity in British barn egg production enabling our transition to cage-free by June 2027. This is the right route to protect both affordable choice and welfare and reflects our ‘Doing it Right’ commitment in action.
“We value constructive engagement, but we also have a responsibility to our customers. This is a plan that delivers on both fronts.”
Iceland is currently the fourth largest retailer of caged eggs in the UK, and sales of these products have declined by almost 15% in the last year. The transition to 2027 will be supported by the rollout of barn eggs to all Iceland stores by January 2026.