Coffee Crisis: Why Your Espresso Costs So Much

Does Your Favourite Drink Really Have to Be a Luxury Now?

The morning cup of coffee, the quick espresso after lunch – for many of us, this moment is pure quality of life. But honestly: Do you also feel that your daily caffeine kick is getting more and more expensive? You are not alone! We Germans love our coffee (an average of 164 litres per year!), but the enjoyment is slowly becoming a costly pleasure. Let's look at what is behind the rapid price increase.

When the Weather Ruins the Harvest

Coffee grows in a sensitive belt around the equator, the so-called "Coffee Belt." However, climate change is severely affecting the growing countries. Take Brazil, our largest coffee supplier: Long drought periods are causing harvests to shrink. Or Vietnam, the second-largest producer: Here, extreme dryness and heavy downpours alternate – often with devastating consequences for the plantations. Less harvest combined with rising demand (especially in Asian countries) naturally pushes prices up.

Your Café Visit: A Costly Pleasure

You notice it when you look at the menu in the café: For a cappuccino, you often pay four to five Euros today. The bag of coffee in the supermarket is also quite costly. Branded coffee is about 20 Euros per kilo, pads are even around 35 Euros! Inflation, higher delivery costs, and more expensive packaging affect the entire chain. By the way: There is occasionally good news! Some discounters are currently lowering the prices for their own brands. A small silver lining for bargain hunters!

The Stock Market Decides Before You Can Even Sip

Coffee is not just a stimulant but also a global commodity. Its price is determined on the stock market, long before the beans are ripe. Traders buy "futures" there, which are contracts for future deliveries. When investors fear that crops will fail, they buy more contracts. Demand on the stock market rises, and the price increases. Speculators further drive this development. In short: The price of your morning coffee is already being influenced today by traders in New York and London.
How you can still enjoy it affordably: Consumer advice centres offer simple tips! Go for own brands (often cheaper, even with organic labels), avoid expensive pads and capsules, and be sure to compare the price per kilo in the supermarket. That way, your coffee moment remains what it should be: a wonderful pleasure!