Coffee prices in South Korea have been climbing steadily since the start of the year due to shortages caused by extreme weather and rising global demand.
Compose Coffee, one of the country’s three major low-cost coffee chains alongside Mega MGC Coffee and Paik’s Coffee, announced on January 4 that it would raise the price of a single cup of iced Americano from 1,500 won to 1,800 won and its decaf iced Americano from 2,500 won to 2,800 won, effective February 13. Other popular chains, such as Starbucks, Hollys, and Paul Bassett, have also raised the prices of their Americanos and lattes by 200 to 400 won.
This price surge isn’t limited to South Korea. The J.M. Smucker Company, which owns brands like Dunkin’, has also announced similar price hikes in the U.S.
Experts attribute these increases to soaring coffee bean prices, which have doubled in the past year. Arabica and robusta beans, the two most commonly used types, saw their prices rise from $4,152 and $3,134 per metric ton in February 2023 to $8,397 and $5,534 this month—representing increases of 102% and 77%, respectively. With coffee bean prices continuing to rise, cafés are adjusting their prices to manage the increased costs.
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