Panic buying (alternatively hyphenated as panic-buying; also known as panic purchasing) occurs when consumers buy unusually large amounts of a product in anticipation of, or after, a disaster or perceived disaster, or in anticipation of a large price increase, or shortage.
Panic buying during various health crises is influenced by "(1) individuals' perception of the threat of a health crisis and scarcity of products; (2) fear of the unknown, which is caused by emotional pressure and uncertainty; (3) coping behaviour, which views panic buying as a venue to relieve anxiety and regain control over the crisis; and (4) social psychological factors, which account for the influence of the social network of an individual".[1]
Fishing-rod panic buying in Corpus Christi, Texas, during the COVID-19 pandemic
Panic buying can lead to genuine shortages regardless of whether the risk of a shortage is real or perceived; the latter scenario is an example of self-fulfilling prophecy.[4]
Examples
Panic buying occurred before, during, or following:
In September 2013 during the Venezuelan economic crisis, the Venezuelan government temporarily took over the Aragua-based Paper Manufacturing Company toilet paper plant to manage the "production, marketing and distribution" of toilet paper following months of depleted stocks of basic goods—including toilet paper—and foodstuffs, such as rice and cooking oil. Blame for the shortages was placed on "ill-conceived government policies such as price controls on basic goods and tight restrictions on foreign currency" and hoarding.[29]
Dakazo – Amid decreased support before the 2013 Venezuelan municipal elections, Venezuelan president Nicolás Maduro announced the military occupation of stores on 8 November 2013, proclaiming "Leave nothing on the shelves!"[30] The announcement of lowered prices sparked looting in multiple cities across Venezuela.[31] By the end of the Dakazo, many Venezuelan stores were left empty of their goods.[30] A year later in November 2014, some stores still remained empty following the Dakazo.[30]
In May 2023, the Malaysian states of Penang and Kedah experienced panic buying of bottled water due to an interruption in tap water supply lasting less than 24 hours.[35]
Panic buying became a major international phenomenon between February and March 2020 during the early onset of the COVID-19 pandemic, and continued in smaller, more localized waves throughout during sporadic lockdowns across the world. Stores around the world were depleted of items such as face masks, food, bottled water, milk, toilet paper,[38]hand sanitizer, rubbing alcohol, antibacterial wipes and painkillers.[39][40][41][42][43][44] As a result, many retailers rationed the sale of these items.[45]
Online retailers such as eBay and Amazon began to pull certain items listed for sale by third parties such as toilet paper,[46] face masks, pasta, canned vegetables, hand sanitizer and antibacterial wipes over price gouging concerns.[47][48] As a result, Amazon restricted the sale of these items and others (such as thermometers and ventilators) to healthcare professionals and government agencies.[49] Additionally, panic renting of self-storage units took place during the onset of the pandemic.[50]
The massive buyouts of toilet paper caused bewilderment and confusion from the public. Images of empty shelves of toilet paper were shared on social media in many countries around the world, e.g. Australia, United States, the United Kingdom, Canada, Singapore, Hong Kong and Japan. In Australia, two women were charged over a physical altercation over toilet paper at a supermarket.[51] The severity of the panic buying drew criticism; particularly from Prime Minister of AustraliaScott Morrison, calling for Australians to "stop it".[52]
Research on this specific social phenomenon of toilet paper hoarding suggested that social media had played a crucial role in stimulating mass-anxiety and panic.[53] Social media research found that many people posting about toilet paper panic buying were negative, either expressing anger or frustration over the frantic situation. This high amount of negative viral posts could act as an emotional trigger of anxiety and panic, spontaneously spreading fear and fueling psychological reactions in midst of the crisis. It may have triggered a snowball effect in the public, encouraged by the images and videos of empty shelves and people fighting over toilet rolls.
Gallery
A pro-rationing poster from the United States in World War II showing the effects of panic buying goods
^Bruce Jones & David Steven, The New Politics of Strategic Resources: Energy and Food Security Challenges in the 21st Century (eds. David Steven, Emily O'Brien & Bruce D. Jone: Brookings Institution Press, 2015), p. 12.
^Mamdouch G. Salameh, "Oil Crises, Historical Perspective" in Concise Encyclopedia of the History of Energy (ed. Cutler J. Cleveland: Elsevier, 2009), p. 196.
^Ding, Huiling (2014). Rhetoric of a Global Epidemic: Transcultural Communication about SARS. Southern Illinois University Press. pp. 70, 72, 83, 103, 111.
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