Record-high egg prices lead to panic buying, economist explains why
Americans are witnessing record-high egg prices in stores, resulting in panic buying and shortages across the country. Virginia Tech economist Jadrian Wooten explains the factors behind these high prices and the panicked consumer response.
Why are people panic buying eggs?
“We’re seeing some disruptions in the supply of eggs, but consumers are panic buying because they think prices will be even worse in the future,” Wooten said. “As media coverage amplifies those fears, shoppers increase their behavior and make the problem worse.”
This kind of behavior is causing sudden spikes in demand at local grocery stores.
“The current stock of eggs flies off the shelves faster than stores can restock,” Wooten explained. “While supply is already limited, panic buying further strains the system.”
Psychological factors behind bulk buying
“There’s a herd mentality that drives consumers to buy in bulk when they feel uncertain about the future,” Wooten said. “This behavior is reinforced by the belief that prices may continue rising. It’s the same behavior we saw with toilet paper during the COVID-19 pandemic — a natural response that’s difficult to stop.”
How retailers are addressing egg shortages
“Retailers can try to prevent this by implementing purchase limits, but the easiest way to slow down the problem is often the most painful — raise prices,” Wooten said. “Egg prices are almost double what they were at this time last year. Higher prices, however, can discourage excessive purchasing.”
“Unfortunately, there’s no way of knowing when things will recover and it’s not productive to predict an end date for something like this,” Wooten said. “Once the avian flu subsides and production begins recovering, prices and supply should adjust fairly quickly.”
Avoiding panic buying and adjusting your grocery shopping
Many families rely on eggs as a cheap source of protein and panic buying can disrupt their routines.
“It’s important that families stick to their normal shopping habits as much as possible to avoid further disruptions,” Wooten advised.
“Some individuals may find that other forms of protein, like meat, are more cost-effective,” Wooten said. “While egg substitutes exist, it may be easier to rethink meal planning rather than focusing on replacing eggs directly.”
— Written by Meredith Murphy
About Wooten
Jadrian Wooten is a collegiate associate professor with the Virginia Tech Department of Economics. Wooten’s weekly blog, Monday Morning Economist, tackles economic issues in pop culture and current events. Wooten has been featured in The New York Times, TIME, USA Today, and NBC News, among scores of other media outlets. Read more about him here.
Schedule an interview
To schedule an interview with Jadrian Wooten, contact Mike Allen at mike.allen@vt.edu or 540-400-1700, or Margaret Ashburn at mkashburn@vt.edu or 540-529-0814.