After a turbulent year of extreme climate and war-related challenges, coffee prices are now at heights not seen in 50 years. Unbelievably, coffee prices have risen more than 20% over the last year. This jump represents the largest one-month spike of any type that the federal government tracks. This spike has forced many Americans to reevaluate their coffee consumption habits, as the cost of their daily caffeine fix continues to climb.
The recent spike in coffee prices can be mostly blamed on the damaging effects of climate change on coffee-producing areas. Jacob Aiken-Phillips, Vice President of Melius Research, stated, “There’s been drought and weather conditions in Brazil and Southeast Asia,” which have significantly impacted coffee yields. Due to this, roasted coffee prices are at a 50-year high.
As a result of these increasing costs, many consumers have started to buy more products with sustainable practices. More Americans are saving their uneaten coffee by refrigerating and freezing them to avoid wasting them. This new strategy is part of a national trend toward reacting to fiscal duress rather than preparing, a trend we’ve discussed before. Consumers have gone all-in on new at-home barista routines. Now, they’re experimenting with alternatives such as instant espresso or instant coffee to savor their favorite beverage at a lower price point.
Coffee customers at specialty coffee shops today routinely spend upwards of 6.50 each for a cup or more. As a result, smaller independent roasters and coffee shops may find prices increase and decrease much sooner than larger chains. This volatility can create challenges for local businesses as they navigate the complexities of supply and demand amidst rising costs.
The increase in coffee prices has apparently led consumers to find new ways to be innovative. Now they’re turning to social media platforms like TikTok to find exciting and creative coffee substitutes. These insider tips and hacks save consumers the money they need to offset the financial pinch while still getting their daily caffeine hit.
From experts to advocates, everyone has been putting forth creative and pragmatic ideas to address increasing costs. Think about purchasing dried beans in bulk and signing up for loyalty programs to earn complimentary beverages. These are all good, positive approaches to give consumers a little relief from the rapid increase in the price of coffee.
