The price of instant coffee has surged by as much as 40% over the past year for certain well-known brands, as revealed by a recent study conducted by Which?. This increase has been observed across various major grocery retailers, with 11 out of 12 instant coffee brands experiencing price hikes of at least 8% in the initial two months of 2025 compared to the same period in 2024. Notably, half of these brands saw prices escalate by over 10%.

Among the impacted products is the 200g jar of Nescafé Original, a popular choice among coffee consumers in the UK, which saw a substantial 40% price surge at Ocado, averaging £7.91 compared to £5.65 a year earlier. Similarly, a 140g tin of Nescafé’s Azera Americano witnessed a significant 38% price increase at Tesco, climbing from £5.25 to £7.26. On average, the price of this product rose by 18% to £7.27 across the six retailers surveyed, which also included Asda, Morrisons, Sainsbury’s, and Waitrose.

This spike in prices can be attributed to predictions of reduced harvests this year due to adverse weather conditions affecting the world’s top coffee producers, Brazil and Vietnam. Despite these challenges, some supermarket own-label coffee brands have seen price reductions, while ground coffee prices have remained relatively stable. Consumers are advised by Reena Sewraz, the retail editor at Which?, to consider opting for store brands or exploring different retailers to secure cost-effective options and satisfy their caffeine cravings.

Nestlé, the parent company of renowned coffee brands such as Nescafé and Nespresso, announced plans to implement price hikes and reduce package sizes to counteract escalating bean prices, compounded by inflation from the previous year. While individual retailers determine in-store pricing, Nestlé emphasized the significant rise in coffee production costs, underscoring efforts to enhance efficiency and absorb additional expenses while preserving the quality and taste that consumers cherish.

In response to the escalating cost of coffee beans, retailers like Ocado have expressed commitment to maintaining competitive prices for customers and offering a diverse range of coffee selections to cater to varying preferences and budgets. As the coffee market navigates these price fluctuations, consumers are encouraged to explore alternative options and remain vigilant for favorable deals to manage their coffee expenditures effectively.

This trend reflects a broader challenge in the retail industry, where the impact of external factors such as weather conditions on production and supply chains can significantly influence pricing dynamics. With the coffee market facing ongoing fluctuations, both retailers and consumers must adapt to evolving market conditions to ensure continued access to quality products at reasonable prices.