Why would there be a toilet-paper panic?
COVID-19 has impacted business operation as well as customer behaviors tremendously. The so-called "toilet-paper panic" is one of the most noticeable things that's closely related to the public. This is the phenomenon where people worry that COIVD-19 would last long and the supply for toilet paper would run into a shortage. Buying a large amount of toilet paper rolls to "save for future" has become a panic behavior and shelves of toilet paper in many grocery stores have been cleared out by the public in a panic. This hoarding behavior not only appears in the US, but also emerges in other countries. In the UK, the sales of paper products have increased by more than 134%. France also experienced a 98% increase. Other hygiene products like soap and personal wash also boosted sales for many countries. This change in customer behaviors has been a global issue.
This hoarding behavior not only appears in the US, but also emerges in other countries. In the UK, the sales of paper products have increased by more than 134%.
Something similar also happened in 1973 when U.S. consumers cleared store shelves of the rolls for a month based on little more than rumors, fears and jokes. In 2011, "salt panic" appeared in China over the nuclear crisis in Japan, while U.S. residents were hoarding Iodine tablets and Korean buying tons of seaweed. Various historical events indicate that this type of behavior is not unique and hoarding appears to be a frequent event when a crisis occurs. But why do people hoard and why they did not learn from the past events and continue to panic buying?
There are two basic concepts behind this phenomenon to explain these customers' behaviors: "psychology of hoarding" and "zero risk bias". Psychology of hoarding indicates that people hoard when they believe that an item will be useful or valuable in the future. Most hoarders are motivated by a combination of three factors: emotional or sentimental attachment, aesthetic appreciation, and utility. But according to Frost, hoarders of toilet paper are impacted by the utility factor. Toilet paper is such a necessity good for daily use that people can feel insecure about, as an average person in the U.S. uses about 100 rolls of toilet paper each year. The primary reason for toilet panic then occurs. "Zero risk bias" brings out further reason and capability for people to hoard. Economists suggested that people are more likely to eliminate one risk if it is relatively easy and costless. As buying toilet paper only costs little and almost puts no risks, people are willing to use a small amount of money to eliminate potential risk.
Another economic reason is that there are almost no substitutes for toilet paper, which further heightens the importance of toilet paper and the urgency to buy it. Due to the prevalence of social media and the quick spread of news, one news headline about empty shelves of toilet paper at a single store could put thousands or even millions of people in a panic. When people realized the possibility of not getting such necessary utility supplies, they would all rush to the store. Especially during the self-isolation time, time spent in apps in the US have 10% growth in average. The quick spread of news helps spread the panic around. When more people start to stockpile toilet paper in a short period, more stores will experience a shortage of supply. A vicious circle thus follows.
Many people will question why it takes so long to get toilet paper back on shelves. This is due to the information gap between stores and warehouses. When the store experiences a shortage of supplies, the manager will make an order and wait for the stocks to arrive, which takes a much longer time than the time needed to spread the fear around.
In conclusion, the psychology of hoarding, higher demand, great social media effect during self-isolation, low cost to eliminate a potential risk, and the nature of almost no substitute for toilet paper have all contributed to the global panic of toilet paper shortage.