Why are coffee prices increasing so much?

Coffee prices have risen over 41% due to drought in Brazil and potential US tariffs on Colombian imports, creating a 'perfect storm' of supply issues.

Are shoppers still buying Starbucks coffee?

Yes, Starbucks remains popular in grocery and mass stores, though consumers are increasingly turning to cheaper store-brand options.

What is the White House planning for coffee prices?

The White House has stated plans to take action to lower the prices of coffee and produce due to affordability concerns.

Home / Business and Economy / Coffee Prices Surge 41%: Your Brew Getting Pricier?

Coffee Prices Surge 41%: Your Brew Getting Pricier?

12 Dec, 2025

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Summary

Coffee prices have risen over 41% year-over-year.
Shoppers increasingly choose store brands over name brands.
Drought and potential tariffs threaten further price hikes.

Coffee Prices Surge 41%: Your Brew Getting Pricier?

The cost of coffee has significantly increased, with a year-over-year surge of over 41% reported by the Bureau of Labor Statistics. This price hike is prompting consumers to shift towards more affordable store-brand coffees, which saw their share of consumer spending rise from 19% to 22% in the past year.

Despite this trend, premium brands like Starbucks are currently holding their ground in grocery and mass retail sales, indicating that brand loyalty remains a factor for many shoppers. However, this situation is expected to be challenged as prices continue to climb.

Experts warn of a "perfect storm" brewing for coffee prices due to a combination of severe drought in key growing regions like Brazil, reducing crop yields, and the potential imposition of new US tariffs on Colombian coffee imports. These factors could drive retail prices up by an additional 12% to 18% this quarter alone.