Soaring Coffee Costs: Coffee Transforms into a Pricy Indulgence - Cost Increases by 11 Euros
In 2025, coffee lovers in Germany have felt the pinch as the price of coffee has soared to unprecedented heights. This significant increase is primarily attributed to a sharp rise in wholesale prices of coffee, which grew by 26.2% year-on-year as of June 2025.
The global coffee market price also surged by around 32.55% compared to the previous year, reaching approximately 308.71 US cents per pound in early August 2025. This international price pressure is a key factor in the rising cost of coffee in Germany.
Several key factors have contributed to this trend. Global price increases, influenced by supply constraints, weather-related impacts on coffee-producing regions, and increased demand globally, have played a significant role. Germany’s wholesale prices for food and beverages overall rose by 4.2% year-on-year, with coffee, tea, cocoa, and spices outpacing this increase at +26.2%.
The growth of the German coffee market, valued at nearly USD 12 billion in 2024, is expected to continue, driven partly by sustainability demands such as UTZ certification encouraging environmentally friendly farming. However, these factors may increase costs.
Inflation and supply chain factors have also contributed to the price increase. Though producer prices of industrial products were down slightly, food-related sectors showed price increases, indicating cost pressures from raw materials and supply chain disruptions may be influencing consumer prices.
The price increase has had a direct impact on consumers' wallets. The price of raw Arabica beans on the New York Stock Exchange has temporarily reached a level not seen in over a decade. As a result, consumers now have to pay up to 11 euros more for the same amount of coffee due to price increases.
Brands like Segafredo Intermezzo have seen a substantial price increase, with a kilo costing 21 euros since autumn 2021, compared to 9 euros previously. Even own-brand products, such as Barissimo Classic from Aldi Nord, Klassik from Edeka, and Ja! Roast Coffee from Rewe, have seen significant price increases, now around 30 percent more expensive than a few years ago.
The highest level of coffee prices in Germany was recorded in 2025. Despite the price increases, these own-brand products continue to be among the cheapest filter coffees in German retail. However, many consumers are having to cut back on coffee purchases due to its high cost.
Weather-related crop failures in main producing countries, such as Brazil and Vietnam, have contributed to the price increase of coffee. Dry periods and lack of rain are affecting coffee production in Vietnam, while Brazil has experienced extreme weather conditions, including unusually strong frosts and persistent drought, causing significant crop losses.
Despite these challenges, the market has shown a long-term upward price trend for coffee in recent years. The price of roasted coffee has increased by 12.2% compared to the previous year, according to the Federal Statistical Office. As coffee prices continue to rise, it is approaching luxury item status in Germany.
- In the wake of rising global coffee prices, retirees might need to reassess their retirement finance plans, considering the increased cost of their daily cappuccino.
- With many food and drink items seeing price hikes, some Germans are turning to cooking global cuisines as a way to save money and enjoy diverse recipes at home.
- As coffee becomes a luxury food-and-drink item, some Germans may find their lifestyles changing, focusing less on café visits and more on enjoying homemade food and drinks.
