Nestlé USA is to use only cage-free eggs in all of its food products within the next five years, becoming the latest food company to make this commitment amid growing pressure from animal rights activists and consumers.
Annually, the firm uses approximately 20 million pounds of eggs in its food brands including Häagen-Dazs, Dreyer's and Edy's ice creams, Nestlé Toll House cookie dough and Buitoni pasta.
Eggs also form an important ingredient in Lean Cuisine and Stouffer's breakfast items.
Nestlé USA chairman and CEO Paul Grimwood said: "Our products are in the fridges and pantries of socially conscious consumers across the United States, and we share their belief in the importance of responsibly sourced ingredients.
"The move to using exclusively cage-free eggs is one more way that we're responding to consumers and establishing a precedent for farm animal welfare."
Nestlé claimed that its vow to use cage-free eggs by 2020 will build on its significant commitment on farm animal welfare, which was launched in 2012 and bolstered in 2014.
As part of this commitment, the company detailed its strategy to eliminate particular farming practices, such as tail docking for cattle and pigs, gestation crates for pigs and veal crates.
To meet this commitment, Nestlé is working with World Animal Protection, a global animal welfare organisation, and SGS to review its suppliers.
World Animal Protection official Martin Cooke said: "We are proud to partner with Nestlé who are listening to their customers' concerns and putting animal welfare at the forefront of their purchasing power.
"They are taking a responsible approach to their sourcing of eggs, which will ultimately improve the lives of millions of hens. Major food companies like Nestlé have the power to bring about positive change at every level of the supply chain."
Nestlé is developing pilot projects with its suppliers and World Animal Protection to establish a roadmap for sourcing cage free eggs in Europe and the rest of the world.
Earlier this month, Dunkin' Donuts announced plans to serve only cage-free eggs in the US by 2025, a move that comes after McDonald's and Yum Brands' Taco Bell also made similar announcements.
Last week, pizza chain Papa John's announced that it will serve products of chicken that have been raised without antibiotics by the second quarter of next year.