Consumers Continue Spending, Even As They Express Frustration At A Coffee Price Spike Of Over 22% In The Last Year – CoffeeTalk

Coffee prices at the grocery store have risen by 22% in the past year, more than any other item tracked by the government. This increase is due to bad weather in coffee-growing regions and the Trump Administration’s tariffs. Some consumers are cutting down on cafe trips and making more coffee at home, as they feel pessimistic about the job market and inflation. However, they continue to spend more overall, keeping the economy chugging.

Americans spent $12.7 billion on packaged coffee in the past year, up from $12 billion a year earlier, according to NielsenIQ. Kyle Updegrove, a 61-year-old from Atlanta, visited a Publix supermarket after running out of coffee and found brands like Lavazza, Seattle’s Best Coffee, and Dunkin’ all selling for between $10 and $20. He found a jar of Café Bustelo instant coffee for $6.89, which was more than palatable the next morning with some sweetener and milk.

Modern coffee culture started after World War II, when beans were cheap and consumers started to have more disposable income. In the past few decades, fancy drinks and bags of beans sourced from around the world gained popularity. Even Walmart’s website sells a roughly two-pound bag of Kopi Luwak coffee for $449.

Coffee shops are working overtime to assure customers their hands are tied. Joe Coffee in New York emailed customers before adding a 1.5% “tariff surcharge” to all items in September, explaining that it just got its own tariff bill for over $66,000 on a shipment of Brazilian coffee. CR Coffee Shop in the New Orleans area raised the price of a cup of drip coffee from $3.35 to $3.65 in late September because of higher wholesale prices. Another 10% increase at the four shops is likely soon, said owner Kevin Pedeaux.

Kevin Pedeaux said he has had to raise prices on drip coffee, but the $6.75 Bayou Beast is selling better than ever. The store’s $6.75 seasonal drink, a half-green iced latte with Pandan called the Bayou Beast, is selling better than ever.

While people may be rolling their eyes at the price, they are buying coffee anyway, and reserving the right to rant. Social media is filled with expletive-laden diatribes from the coffee aisle, and some consumers say they are cutting down on cafe trips and making more coffee at home.

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