Experts Are Warning More People May Begin Brewing Coffee At Home
As prices continue to rise for products, some people may consider changing their habits, from driving less as the cost of gas rises to swapping eggs and bacon for pancakes on the weekend. That could also ring true for coffee as the cost of beans continues to rise around the country due to multiple factors, such as climate conditions reducing the amount of coffee grown in Brazil, where the majority of the world's Arabica coffee beans are found, according to CNBC. On the other side of the world in Vietnam, where Robusta coffee beans are grown, the country's reserves of coffee beans are running low. This resulted in prices increasing by 17%, as reported by Bloomberg in late August.
These factors along with others have resulted in the price of ground coffee rising by 39% in the United States in August compared to the year before, according to data compiled by Tasting Table from the U.S. Bureau of Labor Statistics. The U.S. isn't the only place feeling pressure from rising coffee prices. In Europe, coffee prices have increased on average by 16.9% in August compared to August 2021, per Reuters.
Fewer visits to coffee shops
As people continue to grapple with the rising costs of what seems like everything some days, they are predicted to drink more coffee at home than going out for a cup of Joe or a latte, according to Reuters. "I don't think there will be an impact in terms of volumes, but in the way coffee is drunk and in the quality, people are going to lower the quality of what they drink and change where they drink it," said Vanusia Nogueira, executive director of the International Coffee Organization (ICO) to Reuters on October 7. While there are many places, from fast food to family-style restaurants, where a person can get a cup of coffee, Nogueira believes specialty coffee makers could be the most negatively affected.
Despite there being less coffee grown throughout the world, people still thirst for their beloved cup. According to the ICO, the amount of coffee consumed during the 2021/22 coffee year increased by 3.3%. That's in stark contrast to the amount of coffee produced, declining by 2.1%. There is some good news, though. Looking forward, Nogueira predicts that coffee prices are not going to increase more in 2023 and how much coffee people drink around the world should also remain about the same.