The company said it developed its BakeRite ingredient systems as an alternative to using whole egg solids which have "skyrocketed" in price in the last two years.
It can replace up to 65 percent of whole egg solids in baked goods such as pound cake, muffins, cupcakes and cookies, according to the New Jersey-based company, which develops and manufactures ingredient systems for the food processing and food service industries.
AFS senior food scientist Mark Purpura told FoodNavigator-usa.com: "We have done egg replacement products in the past but this is a new line especially for bakery.
"It was mostly price driven because the egg market is so unstable. Also, by taking whole egg out, we reduce some fat and cholesterol and some of the ingredients help to extend shelf life and delay the staling process."
In 2007 eggs averaged 88.5 cents per dozen, compared with 58.2 cents in 2006. But in the first-quarter of 2008 the wholesale price for large eggs was $1.59 per dozen in the New York market, according to the US Department of Agriculture.
AFS's proprietary product is a blend of starches and gums and other ingredients that are said to maintain "natural texture and flavor, excellent air cell structure, and finished product volume, whilst remaining tender and moist through extended storage periods".
Different replacement formulations have been developed to suit specific formulation requirements because pound cake for example, is typically higher in egg solids than cup cakes.
Currently it targets bakery goods but AFS is also looking at egg noodles, waffles and pancakes, according to Purpura.
He added: " It seems to work best where there is a substantial amount of egg. That is why bakery right now seems to be one of the best applications.
"We don't replace all the eggs because they are pretty complex substances.
"When we replace such a large amount of such a functional ingredient, we have got to make sure that what we are putting in mimics what we are taking out without sacrificing the end texture."
Companies have been developing new solutions for food manufacturers to avoid the damaging effects of rising commodity prices pushing up the cost of production.
Gum Technology recently introduced a new line of hydrocolloid and stabilizer blends to replace eggs in custards, doughs and baked goods to try and help manufacturers tackle rising egg prices.
AFS recently launched an ingredient system to reduce semolina with the aim of saving costs on pasta production to ease the impact of rising wheat prices.
And last October, ADM launched a new line of soya proteins for use in place of expensive dairy ingredients or to extend milk supply.