Retail Sector Faces Significant Rise in Coffee Prices

The retail sector is currently experiencing a notable increase in coffee prices, which has left consumers facing higher costs at supermarkets and discount stores. Recent analysis from the price comparison app Smhaggle highlights that the prices for ground coffee and coffee pads from brands like Jacobs, Mövenpick, Melitta, and Senseo have surged between 9% and 33% since the start of the year. In the case of coffee beans from these brands, the price hike reaches as much as 43%. Even the more affordable private labels from various grocery chains, such as 'Barissimo,' 'Bellarom,' 'Gut & Günstig,' and 'Ja,' have seen price increases of 28% to 30% compared to January.

Retailers and market experts attribute this price escalation to a significant rise in raw material costs, primarily driven by adverse weather conditions and poor harvest forecasts, particularly in Brazil, the world's largest coffee producer. Tchibo, another prominent retailer, has also raised its coffee prices as of February, with increases ranging from 50 cents to 1 euro per pound depending on the variety.

The trend of rising coffee prices is not new; consumers have already witnessed a steady increase over the past few years. For instance, at the beginning of 2022, the cheapest 500-gram pack of private label ground coffee was priced at EUR2.99. Today, consumers are paying EUR5.49 for the same quantity, marking an increase of nearly 84%. Similarly, comparable products from brand manufacturers such as Melitta or Jacobs are now retailing for EUR9.29, which is up to 47% more than what was charged two years ago.

A recent price comparison conducted on April 7 revealed that the price tags for these coffee products across various retail chains are largely consistent. This trend is likely to continue as the coffee market grapples with ongoing supply chain challenges and fluctuating agricultural conditions.