Brewed to breaking point: Why Aussies are paying more than ever for this daily morning essential
- Replies 23
For many, a morning coffee is an essential ritual, a comforting routine that kickstarts the day. But as the cost of living continues to rise, so, too, does the price of that cherished cup of coffee.
Recently, a woman expressed her disbelief after spending $15 on her coffee, and she's not alone in her frustration.
With warnings that coffee prices are set to rise even further, it's time to take a closer look at what's behind this trend and what it means for coffee lovers across the nation.
On New Year's Day, Brisbane woman Phoebe Parsons ordered two small cappuccinos—one with oat milk and another with almond milk—and was taken aback by the price tag.
While she understood that holiday surcharges and the cost of alternative milk could inflate the price, the reality of a $15 charge left her and many social media users in shock.
‘I understand why you have to do that from a business perspective…(but) what?’ she said in a video.
Comments poured in from others sharing their own experiences of exorbitant coffee costs.
‘Hubby paid $19.80 for two small iced long blacks in Newcastle this morning,’ one commenter shared, adding that she ‘almost collapsed’ in shock.
‘I just was charged $8.10. Thought that was a bit much,’ another lamented.
‘My iced latte today was $13.80 with the surcharge,’ a third added.
Another person said they've stopped purchasing coffee outside their home to cut costs, saying, ‘I just ended up buying a nice barista-style coffee machine.’
‘It’s been a game changer for me and my fam, me and my hubby get freshly brewed coffees.’
The conversation quickly turned to the reasons behind these soaring prices, which others said is now the ‘standard’.
Some pointed out that the higher hourly rates for staff on public holidays, the popularity of alternative milks, and the general increase in operating costs for cafes all contribute to the price hike.
‘Realistically, most cafes are lucky to be making $0.50 profit on a $7-$8 coffee when you take all the expenses into account,’ they wrote.
However, there's more to the story than just holiday surcharges and fancy milk options.
Experts, including ANZ Agribusiness Insights Head Michael Whitehead, have indicated that the cost of coffee will continue to increase due to a combination of factors.
Experts have cautioned that the price of regular coffee may keep climbing in 2025 due to rising living expenses and higher bean costs.
The price of Arabica beans, a favourite among Australian coffee drinkers, hit a record high last year, reaching prices not seen since 1977.
Environmental challenges such as heavy rainfall and drought-like conditions have ravaged harvests in Brazil and Vietnam, the world's largest and second-largest coffee producers, respectively. This has led to a limited supply of coffee beans, further straining the market.
Inflation also plays a significant role, affecting the cost of rent, utilities, and ingredients, all of which are essential to running a cafe.
However, despite the rising costs, the demand for coffee remains strong.
Many Australians are unwilling to give up their daily caffeine fix, and as Whitehead suggested, ‘Lots of people say, “I'm not paying $6 for coffee,” but then they will.’
The love affair with coffee seems to be one indulgence that people are not ready to sacrifice, even in the face of tightening budgets.
You can watch Phoebe’s video here:
While the rising cost of café coffee has left many Australians frustrated, it’s also prompting a shift in how people enjoy their daily caffeine fix.
From investing in home coffee machines to exploring budget-friendly alternatives, savvy Aussies are finding creative ways to beat the cost-of-living squeeze without giving up their beloved brew.
We'd love to hear from you, our Seniors Discount Club members. Have you noticed a significant increase in the price of your coffee? Have you changed your coffee habits as a result? Share your thoughts and experiences in the comments below, and let's discuss how we're all navigating this caffeinated conundrum.
Recently, a woman expressed her disbelief after spending $15 on her coffee, and she's not alone in her frustration.
With warnings that coffee prices are set to rise even further, it's time to take a closer look at what's behind this trend and what it means for coffee lovers across the nation.
On New Year's Day, Brisbane woman Phoebe Parsons ordered two small cappuccinos—one with oat milk and another with almond milk—and was taken aback by the price tag.
While she understood that holiday surcharges and the cost of alternative milk could inflate the price, the reality of a $15 charge left her and many social media users in shock.
‘I understand why you have to do that from a business perspective…(but) what?’ she said in a video.
A Brisbane woman was shocked to pay $15 for two small cappuccinos, as coffee prices are set to climb. Credit: @phoebeparsons__ / Tiktok
Comments poured in from others sharing their own experiences of exorbitant coffee costs.
‘Hubby paid $19.80 for two small iced long blacks in Newcastle this morning,’ one commenter shared, adding that she ‘almost collapsed’ in shock.
‘I just was charged $8.10. Thought that was a bit much,’ another lamented.
‘My iced latte today was $13.80 with the surcharge,’ a third added.
Another person said they've stopped purchasing coffee outside their home to cut costs, saying, ‘I just ended up buying a nice barista-style coffee machine.’
‘It’s been a game changer for me and my fam, me and my hubby get freshly brewed coffees.’
The conversation quickly turned to the reasons behind these soaring prices, which others said is now the ‘standard’.
Some pointed out that the higher hourly rates for staff on public holidays, the popularity of alternative milks, and the general increase in operating costs for cafes all contribute to the price hike.
‘Realistically, most cafes are lucky to be making $0.50 profit on a $7-$8 coffee when you take all the expenses into account,’ they wrote.
However, there's more to the story than just holiday surcharges and fancy milk options.
Experts, including ANZ Agribusiness Insights Head Michael Whitehead, have indicated that the cost of coffee will continue to increase due to a combination of factors.
Experts have cautioned that the price of regular coffee may keep climbing in 2025 due to rising living expenses and higher bean costs.
The price of Arabica beans, a favourite among Australian coffee drinkers, hit a record high last year, reaching prices not seen since 1977.
Environmental challenges such as heavy rainfall and drought-like conditions have ravaged harvests in Brazil and Vietnam, the world's largest and second-largest coffee producers, respectively. This has led to a limited supply of coffee beans, further straining the market.
Inflation also plays a significant role, affecting the cost of rent, utilities, and ingredients, all of which are essential to running a cafe.
However, despite the rising costs, the demand for coffee remains strong.
Many Australians are unwilling to give up their daily caffeine fix, and as Whitehead suggested, ‘Lots of people say, “I'm not paying $6 for coffee,” but then they will.’
The love affair with coffee seems to be one indulgence that people are not ready to sacrifice, even in the face of tightening budgets.
You can watch Phoebe’s video here:
While the rising cost of café coffee has left many Australians frustrated, it’s also prompting a shift in how people enjoy their daily caffeine fix.
From investing in home coffee machines to exploring budget-friendly alternatives, savvy Aussies are finding creative ways to beat the cost-of-living squeeze without giving up their beloved brew.
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