In the US consumers are witnessing record-high egg prices in stores, as the Wall Street Journal reports. The price increase is due to the raging bird flu (H5) epidemic. This has required farmers to kill millions of chickens and this has consequently pushed the cost of eggs to an all-time high. To date, 166,065,938 poultry have been affected (US Centers for Disease Control and Prevention data, as of 26th February 2025).
This situation has led panic buying and significant shortages across the country. Virginia Tech economist Jadrian Wooten (collegiate associate professor with the Virginia Tech Department of Economics) has assessed the factors behind these high prices and the panicked consumer response.
The psychological factors that may motivate people to engage in hoarding the necessities, even when there is little reason to believe they are in short supply however, is still not well understood. Wooten provides an economic assessment.
“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 explains. “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 adds. “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 notes. “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.”
Herding is the phenomenon of individuals deciding to follow others and imitating group behaviours rather than deciding independently on the basis of their own, private information.
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 acknowledges. “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 continues. “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 finds.
“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.”
