Are you in Europe? This isn't entirely a demand issue as such; the EU has introduced regulations (relating to cage size, treatment etc) which make battery farming of chickens a less attractive proposition for producers, especially for egg production. The production cost difference is now small enough that, given that there _is_ a bit more demand for free-range, it's not really worth it, at least for eggs to be sold commercially.

Or more likely, all farmers increased the size of the cages or connected them with the outside so they can now class them as free range, even though the conditions have not improved that much?

No, "free range" is a classification in Sweden with rules and cages are not allowed in those.

"free range indoors" means large stables, no cages, multiple levels and a maximum of 9 hens per m^2.

"free range indoors and outdoors" is the same as indoors, but with the addition of an outside yard with at least 4m^2 per hen.

Battery cages were banned in 1988, but cages are still allowed. max 13 hens per m^2 and max 16 hens per cage, and there needs to be a nesting area.

So it's not all crap, but the day when we can synthesize food cannot come fast enough.

Increasing the size of the cages and allowing them outside, is not improving the conditions 'that much'??

No,it's not. "Outside" could mean an equally small space,just outside of building. Sure,it's better,but it's no where near the real "free range" where chickens are just free to go wherever they like. It's more about space that they get rather than whatever they are outside or not.

Where are you? It is not helpful to say that without context.

Sweden.