Love coffee? Heads up—you might be paying more for it soon
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For many Australians, especially those in their golden years, starting the day without a warm cup of coffee is akin to skipping breakfast—it's simply unthinkable.
But it seems this beloved ritual is about to face a challenge that could hit us right where it hurts: our wallets.
Coffee prices are on the rise, and it's not just a slight uptick; we're looking at a significant increase that could have all of us rethinking our daily habits.
The global market is buzzing with news that could sour even the sweetest cup of coffee.
Arabica beans, the most used by producers worldwide, have seen their prices skyrocket. On a recent Tuesday, the cost for 0.45 kg of Arabica beans hit an eye-watering $US3.44 ($AUD 5.39), marking an 80 per cent increase this year alone, according to the BBC.
And it's not just Arabica; Robusta beans, known for their stronger and more bitter flavour, have also reached new price heights.
Why is this happening? Well, it's a storm of unfortunate events.
Brazil, the coffee powerhouse responsible for a large portion of the world's Arabica production, has been hit by its worst drought in 70 years, followed by heavy rains that have raised serious concerns about the quality of the harvest.
Vietnam, the top producer of Robusta beans, has faced similar challenges with drought and excessive rainfall.
These weather woes have come at a time when the global thirst for coffee remains unquenched, creating a supply-demand mismatch that's pushing prices up.
Coffee companies, which have so far been absorbing these cost increases, are reaching their breaking point.
‘Brands like JDE Peet (the owner of the Douwe Egberts brand), Nestlé and all that, have [previously] taken the hit from higher raw material prices to themselves,’ Vinh Nguyen, CEO of Tuan Loc Commodities, said.
‘But right now, they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025.’
But it's not just the price of beans that's causing concern. The cost of living in Australia has been on the rise, and it's affecting where and how we get our coffee fix.
Data from last month revealed a trend of coffee lovers turning to service stations and convenience stores for their daily brew as a more budget-friendly option.
For instance, 7-Eleven sold an additional 50,000 cups of coffee per week this year, with similar growth seen in comparable retailers like Reddy Express.
With a starting price of just $2, a cup from these outlets is less than half the price of one from a local café, translating to potential savings of over $1000 a year for daily coffee drinkers.
What are your thoughts and strategies for dealing with the rising cost of coffee? Share them with us in the comments below.
But it seems this beloved ritual is about to face a challenge that could hit us right where it hurts: our wallets.
Coffee prices are on the rise, and it's not just a slight uptick; we're looking at a significant increase that could have all of us rethinking our daily habits.
The global market is buzzing with news that could sour even the sweetest cup of coffee.
Arabica beans, the most used by producers worldwide, have seen their prices skyrocket. On a recent Tuesday, the cost for 0.45 kg of Arabica beans hit an eye-watering $US3.44 ($AUD 5.39), marking an 80 per cent increase this year alone, according to the BBC.
And it's not just Arabica; Robusta beans, known for their stronger and more bitter flavour, have also reached new price heights.
Why is this happening? Well, it's a storm of unfortunate events.
Brazil, the coffee powerhouse responsible for a large portion of the world's Arabica production, has been hit by its worst drought in 70 years, followed by heavy rains that have raised serious concerns about the quality of the harvest.
Vietnam, the top producer of Robusta beans, has faced similar challenges with drought and excessive rainfall.
These weather woes have come at a time when the global thirst for coffee remains unquenched, creating a supply-demand mismatch that's pushing prices up.
Coffee companies, which have so far been absorbing these cost increases, are reaching their breaking point.
‘Brands like JDE Peet (the owner of the Douwe Egberts brand), Nestlé and all that, have [previously] taken the hit from higher raw material prices to themselves,’ Vinh Nguyen, CEO of Tuan Loc Commodities, said.
‘But right now, they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025.’
But it's not just the price of beans that's causing concern. The cost of living in Australia has been on the rise, and it's affecting where and how we get our coffee fix.
Data from last month revealed a trend of coffee lovers turning to service stations and convenience stores for their daily brew as a more budget-friendly option.
For instance, 7-Eleven sold an additional 50,000 cups of coffee per week this year, with similar growth seen in comparable retailers like Reddy Express.
With a starting price of just $2, a cup from these outlets is less than half the price of one from a local café, translating to potential savings of over $1000 a year for daily coffee drinkers.
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