Record coffee prices this year are changing how people consume their daily caffeine. While cappuccinos and lattes have become more expensive, consumers are not giving up coffee. Instead, they are choosing cheaper alternatives such as drive-through coffee shops or whole beans delivered to their homes, according to Bloomberg, cited by Agerpres.
Data on café visits in the US, combined with international consumer surveys, point to clear adjustments driven by persistent inflation. This trend intensifies competition for major coffee chains and reflects a cultural shift, particularly among cost-conscious Generation Z consumers.
Read also: 10 years of steady growth for Romania’s largest coffee chain
“Coffee shops have lost some of their shine and momentum as the at-home coffee market has grown. There are cost pressures on people who still need their caffeine,” said James Hoffmann, YouTube influencer and co-founder of Square Mile Coffee.
Prices for arabica coffee beans, favored by chains such as Starbucks, have surged over the past year after global supplies, largely from Brazil, were hit by adverse weather and tariffs. Even after a recent decline, New York futures hover around $3.60 per pound, more than double the average of the past two decades.
Consumers switch to more affordable options instead of giving up coffee
As a result, the average price of a regular cup of coffee on US restaurant menus has risen by nearly 20% since early 2023, according to Toast data. Americans spend over $100 billion annually on coffee, but rising prices push consumers toward more affordable segments.
“People haven’t necessarily cut back on coffee consumption, but they have shifted toward cheaper options,” said Kona Haque, head of commodities research at ED&F Man, speaking to Bloomberg Television.
Surveys show more consumers brewing coffee at home, while lower-cost drive-through locations and convenience stores gain traffic. Together, these trends suggest a potential generational shift in how and where people choose to drink coffee.
Photo: freepik.com
