Coffee Prices Surge Amid Inflationary Pressures
Coffee prices continue to climb as poor harvests, rising business costs and global supply pressures push up the cost of everything from supermarket beans to café flat whites.
By The Guardian
Coffee lovers are facing higher prices both in cafés and supermarkets as poor harvests, rising business costs and global supply pressures continue to affect the industry.
Some independent cafés in central London are now charging as much as £6.50 for a flat white, while even major chains have increased prices over the past year.
Industry leaders say the increases are being driven by a combination of soaring coffee bean prices, higher wages, increased energy bills and rising operating costs.
Giuseppe Lavazza, chairman of Italian coffee company Lavazza, said arabica coffee prices have risen by around 230% since 2021, while robusta beans have increased by 325% over the same period.
He described the market as experiencing “exceptional volatility” and warned it could take at least two years of favourable harvests before prices begin to stabilise.
Extreme weather has become one of the biggest challenges facing coffee growers.
Brazil, the world’s largest producer of arabica coffee, has experienced unusually heavy rainfall that has delayed harvesting and affected bean quality. Meanwhile, Vietnam, the world’s biggest producer of robusta beans, has been hit by drought alongside sharply rising fertiliser, fuel and labour costs.
Analysts say climate change is making weather patterns increasingly unpredictable, leaving global coffee supplies more vulnerable to disruption.
The rising cost of raw coffee is feeding through to consumers.
At Lavazza’s flagship London café, a takeaway flat white now costs £4.40, up from £4, while customers drinking in pay £6.50, compared with £5.50 previously.
Other chains have also increased prices, with a flat white costing around £5.20 at Starbucks and £4.70 at Costa, although prices vary by location.
David Abrahamovitch, founder of artisan coffee chain Grind, said his company has kept the price of a flat white at £4.10, despite the wholesale cost of green coffee beans more than doubling since 2024.
He said the business is making only a very small profit on each cup as it tries to avoid passing the full increase on to customers.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said consumers have so far accepted higher coffee prices, but there are limits to how much people are prepared to pay for their daily drink.
Paul Rooke, executive director of the British Coffee Association, said the sector continues to face significant volatility in global coffee markets, alongside rising domestic costs.
Despite the pressures, demand for coffee remains strong, with cafés continuing to invest in new products and premium drinks as customers continue to view coffee as an affordable everyday treat.