In Australia, coffee enthusiasts face troubling news as the industry grapples with unprecedented price increases amidst a cost-of-living crisis. The price of coffee beans has doubled in recent years, primarily due to severe weather disruptions affecting major producers like Brazil.
Industry experts warn that consumers may need to adjust to higher coffee prices, or risk the closure of beloved local cafés. Andrew Low from Coffee Supreme cautioned, “If we don’t raise prices, cafés will go out of business.”
Sam Gabrielian of Sydney’s Gabriel Coffee noted that cafés are caught in a difficult situation regarding the rising cost of beans. “Raising prices by a dollar or two per cup is necessary, but there’s concern about losing customers,” he remarked.
A report by the International Coffee Organization highlights several external factors contributing to the crisis. It states that the coffee sector is still navigating challenges stemming from the COVID-19 pandemic, with consumption patterns affected by these shocks.
Additionally, coffee consumption dropped in the 2022/23 period due to the rising cost of living and reduced disposable incomes. The report attributes the decline to a “challenging global economic environment” impacting consumer behavior.
In summary, coffee lovers may soon find their daily brew comes with a heftier price tag, potentially endangering the future of their favorite cafés.