Sorry coffee lovers, but coffee prices are on the rise, and only plan on getting pricier.
While the health benefits of drinking coffee may outweigh quitting it altogether, the sudden increase in cost may have you rethinking where you get your coffee from. As the cost of coffee beans continues to increase, this has left most coffee shops with no choice but to raise prices.
Brazil—considered one of the world’s largest coffee bean exporters—faced extreme weather conditions in July (including an unusual frost and drought), which has severely impacted its crop of coffee this season. The shortage in bean growth has since led the country to raise its prices on coffee beans being exported.
Back in March of this year, retailers like Folgers or Café Bustelo were able to purchase coffee beans for around $1.20 per pound, Nasdaq reports, but by July prices increased to over $2 a pound. Starbucks and Nestle fans can rest easy as the companies have stated they won’t be raising prices anytime soon. Large retailers like Starbucks won’t feel the negative impact right away as the company keeps a stocked inventory for the year. Unlike smaller coffee shops, places like Starbucks don't need to replenish their inventory as often, allowing them to maintain consistent prices for up to a year. From then on, the production backlog could push large companies to increase their prices until coffee-producing countries get back on their feet.
This is due to its “purchasing strategy” which typically involves purchasing coffee “ahead of time” and locking in “attractive prices,” Starbucks CEO Kevin Johnson said during an analyst call discussing the company’s earnings.
Since coffee is such a large part of most of our everyday lives though, “it would take a lot to change [consumer’s] coffee habits,” Darren Seifer, food and beverage industry analyst at research firm NPD Group told Bloomberg. Meaning, that while coffee prices may be on the rise, it won’t stop most of us from consuming it. For those on a budget, it may be time to splurge on one of the best coffee machines instead of taking a trip to your local coffee shop. If you've been dying to try one of the latest coffee trends, it could be worth investing in the best coffee travel mug and teaching yourself how to make that new latte home as the cost of coffee continues to rise.
Best at-home coffee machines
With coffee prices spiking, making your favorite caffeinated drink at home may be the best option for saving money. You can still get café-grade coffee from your kitchen with the right coffee maker. We put some of our favorite coffee machine deals below to help you save time and money.
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