The Eclipse Economy

Once every 12 years, North America witnesses a total solar eclipse, as is what happened on April 8th, 2023. People from all across the country skip school and work to travel to the line of totality, purchasing special ISO 12312-2 verified glasses, viewing tickets, and even special eclipse-themed food items. While eclipses hold fascination as scientific phenomena, they also present multifaceted economic opportunities. One estimate by The Perryman Group even suggested that, when accounting for all indirect downstream effects, the eclipse alone will boost the U.S. economy by more than $6 billion.

The seemingly most obvious way in which this happens is through travel – to reach the optimal viewing destinations along the strip from Texas to Maine, people spend on fuel, mobile transportation services, and even plane tickets. Many eat in restaurants and spend the night in hotels, further allowing local businesses to benefit from the influx of tourists. For small cities and towns located near or within the path of totality, the revenue potential can be comparable to that of hosting a major sporting event. This is because people are compelled to spend on memorabilia and souvenirs to commemorate the rare, 3-minute occurrence.

But, what’s even more interesting is how large companies capitalize on the event by offering limited-edition products. Krispy Kreme, for example, launched an exclusive donut that was available for just three days. Sonic, Oreo, Snapple, and many other food and beverage companies followed suit with a similar product.

Do any of the items mentioned have anything to do with eclipses? None whatsoever.

Still, the exclusivity of the product makes people feel special and creates a sense of urgency in purchasing them, which is why these companies tend to reap huge profits from limited-edition products. This highlights the broader aspects of consumerist culture in the United States, where even a simple donut can evoke a sense of exclusivity and pride.

One important pattern one may notice is the fact that the majority of exclusive products that stocked the shelves were food items. The reasoning is simple: it is far more cost-effective to launch a new food product with similar ingredients than to synchronize alternative products to arrive in stores for a select period of time, especially when it is as short as an eclipse. Additionally, the development process that a company would have to undergo when designing a new toy, for example, as opposed to adding an oreo on top of the existing donut is drastic. People are also unlikely to purchase a solar eclipse shirt on the day after the event, whereas food items are more likely to sell quickly and continue to attract buyers even after the eclipse, minimizing potential losses.

While these trends were visible during the eclipse, they apply to any special event and shed light on the motivations behind exclusive product offerings and the allure of exclusivity.