The price of branded instant coffee has been on the rise, causing concern among consumers. Which? conducted research on 12 popular coffee brands across various supermarkets and discovered significant price hikes of up to 40%. The surge in prices is attributed to the escalating cost of robusta beans, a key ingredient in instant coffee production. Vietnam, the leading robusta bean producer, faced adverse weather conditions, leading to a spike in global coffee prices.
Nescafé Original, the UK’s top-selling coffee, experienced a substantial price increase of 40% at Ocado. Similarly, Nescafé’s Azera Americano and L’Or’s Classique instant coffees saw price hikes ranging from 18% to 28% across different supermarkets. The average price of various branded instant coffees surged, with Nescafé Azera Americano, Nescafé Original, and L’Or Classique leading the pack with double-digit percentage increases.
Amidst the escalating prices of branded instant coffees, own-label alternatives have emerged as a cost-effective option. Which? found that own-brand instant coffees witnessed a slight decrease in prices year-on-year. Not only are own-label coffees more affordable, but they also offer quality comparable to popular branded options. In a taste test, M&S’s Fairtrade Gold and Aldi’s Alcafé Gold Roast outperformed renowned brands like Douwe Egberts and Kenco.
Furthermore, the price stability of ground coffees contrasts the volatility seen in instant coffee prices. Lavazza’s ground coffees experienced notable price hikes, primarily due to the increased cost of arabica beans. Concerns over Brazil’s coffee crop, a major arabica bean producer, have contributed to record-high bean prices.
Despite the surge in coffee prices, coffee shop prices have only seen marginal increases. The average price of a 12oz latte at popular coffee chains rose by 4% year-on-year, according to market research data. However, over the past three years, latte prices have increased significantly, reflecting broader trends in the coffee industry.
Manufacturers and supermarkets acknowledge the challenges posed by rising coffee prices. Nestlé highlighted the impact of increased coffee costs on manufacturing expenses but emphasized efforts to maintain product quality while absorbing some cost increases. Supermarkets like Ocado strive to provide customers with affordable options despite commodity price fluctuations.
In conclusion, the escalating prices of branded instant coffee underscore the impact of global factors on consumer goods. As consumers navigate price hikes, exploring alternative options like own-label coffees can offer both savings and quality. The coffee industry’s resilience to supply chain challenges and price fluctuations remains a critical area to monitor for both businesses and consumers.
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