Your Coffee Is Getting More Expensive. Here’s Why | WSJ

Coffee prices are heating up, and experts say an even bigger price hike could be coming. WSJ explains the web of economic forces that help determine the cost of coffee. Illustration: Mallory Brangan/WSJ
More from the Wall Street Journal:
Visit WSJ.com: www.wsj.com
Visit the WSJ Video Center: wsj.com/video
On Facebook: / videos
On Twitter: / wsj
On Snapchat: on.wsj.com/2ra...
#wsj #coffee #commodities

[@SpiralBreeze]

I have two very expensive cafes across the street from me and yet the best coffee in the entire neighborhood is only 1.25 at the Cuban Restaurant. No one can beat that man’s cafe con leche. His espresso machine is ancient and that stuff just hits different.

[@artofminh]

@Pete That was not very nice, but hilarious.

[@kingslayercr7]

Bro area?

[@MA-un1mj]

😋 yum, cuban coffee.

[@trevorlouis7041]

i guess it's pretty off topic but does anybody know a good site to stream newly released tv shows online ?

[@kazekai8]

I brew my own coffee and is cheaper to buy a whole bag of beans than a cup.

[@mechros4460]

Same. Even that expensive specialty stuff is cheaper. Calculating over time, getting a $1500 espresso machine and a $500 grinder is cheaper than ordering a coffee or two daily for a year+. I also included the price of $25 a bag coffee.

[@amansahani2001]

In India, I’m getting good quality of arabica coffee(1kg) beans at just for 15 USD.

[@EricHouserecho1284]

Definitely 👍☺️ where in the world does one pay for $4 a cup? 🤣

[@KingQuetzal]

@@mechros4460 costco has a coffee grinder if you buy coffee there can save even more. Then do cold brew and its basically free.

[@mechros4460]

@@KingQuetzal yeah exactly. Leaving an espresso machine and going for an aeropress or a cold brew would be even cheaper.

[@Senpai_1996]

I buy myself a grind bag of coffee in my local grocery store, and it's cheaper honestly than going out to buy a coffee from Starbucks or any establishments.

[@Senpai_1996]

@Chelle Bright I like Folgers

[@lindawise127]

8 o'clock coffee is delicious

[@1sttigertiger426]

The demand for coffee is inelastic because coffee is a drug.

[@jonathanpereira6618]

You're correct, sir.

[@user-bm6ce7hw5x]

fax

[@Camera7Productions]

Drinking my Cold Coffee while watching this video just hit different

[@wonderowl530]

I’ve been subscribing coffee beans for years now and I always pay a year worth of coffee upfront. Every month I get new and fresh roasted beans by mail. Frankly, it’s the best way to get your coffee.

[@joharifrontline2680]

Which subscription service?

[@yamatokira4335]

Coffee bring joys to me. Really thankful for that.🤗

[@Adam-vx6to]

Step 1: Watch James Hoffmann Step 2: Switch to brewing your own

[@suyashjaiswal2782]

As someone who never drinks coffee or tea its wild how unconciously people develop their caffeine dependency and cant go a day without it. It's literally an addiction

[@brianlim3530]

congratulations ure special

[@mykolamysko987]

They are low life junkies.

[@suyashjaiswal2782]

@@brianlim3530 why so salty

[@nohypeneededfunctionalfitn7767]

Exactly my thoughts. Bunch of mindless bots, the lot of em.....so eager to get exploited.

[@mrighetti]

People produce coffee beans to sell, not to stock. If the dollar goes up it will be a chance for those who aren't producing yet. There's a lot of families in Brazil who gave up from coffee decades ago and started producing sugar cane. Maybe it's time to produce coffee again.

[@trex1448]

Just get a Breville Express. You can get one for like $450. Its not the best but it's the best bang for the buck and effort. Youre not going to warm up your machine over night and pull 3, 4 shots to get that 1 great shot. Useless to get an expensive machine when youre just pulling dopio 3, 4 times a day

[@theeconomicsofthings9752]

4.50 for coffee? I pay $1.50 for a large cup at my local deli in nyc. Or I usually make it at home I can get 30-40 cups with the nestle

[@RisusShorts]

nestle coffe chea[p = gud

[@Vedrajrm]

I pay 0.12$ for a cup of tea

[@_GMP_]

@@Vedrajrm Our 1 Month coffee/Tea bill will not cross $4.5

[@SpiralBreeze]

Nescafé is my favorite. I’m Greek and grew up with it. So glad I can get it in bulk at Costco.

[@nhuchu]

The price of coffee bean has not changed over the last ten year in Vietnam.

[@tightywhitey9779]

Imagine spending $4.25 on a single cup of coffee every day when you can get a full container of ground coffee from the grocery store. The margins are insane for coffee shops, but you need a ton of customers to make any significant profits

[@ryanmccaffery9027]

Wow, that's expensive, if there was only a way to get it for 20 cents using other means...

[@justified4342]

Ahhhh. I see you're a man of culture as well.

[@ryanmccaffery9027]

@@justified4342 maybe, maybe not. I'll tell you if you smash that like button for the youtube algorithm😉

[@fierrect6089]

graham stephan

[@anthonygaiman4815]

If you are someone like me, it is guaranteed that buying a espresso machine will pay for its self in one to three years depending on how expensive the coffee you buy is

[@cliffp.8396]

Education such as this piece are invaluable in clarifying global warming and it's effects on the average person.

[@nosouponhead]

This has nothing to do with climate change. It's because of the economic effects of lockdowns on supply chains.

[@martoncsokas2333]

Seen a lot of story about him, he must be honest and for people to talk this good about him

[@mylyric9044]

Thanks God I was born and raised in Java where isn’t hard to find affordable good coffee, even though most of the time I buy the beans from Sumatra. They can ship your order overseas and some of my foreign guest been purchased the product.

[@humanemulator5297]

People know that they can just not drink coffee.. right?

[@nohypeneededfunctionalfitn7767]

Exactly. It's trash anyways

[@EricPham-gr8pg]

Lack of transportation can drive cost of coffee up. So now we should stored or use substitute like roast corn + roast rice + roast coffee

[@edricklawrenceong7776]

Can confirm. I used to be able to buy 1kg. of Arabica beans from my local supermarket for like $15, it now costs about $17.50.

[@frederickateng3779]

Sipping $20 a kilo specialty arabica Ah... delicious Regards Indonesian

[@johnl.7754]

I think most of the cost increase is not because of coffee bean but rather labor, utilities, taxes....”Now, according to the Specialty Coffee Association of America, one pound of coffee is enough to make 48 6-ounce cups of coffee. That comes to about 27 cents a cup.”

[@rahinv]

🎯

[@u.s.militia7682]

I literally have about 1.5 years worth of coffee hoarded. It’s enough for 2 cups per day for 4 people. I also have enough food, fuel, to, meds, etc. etc.... too. COVID-19 taught me something. Haven’t you learned yet???

[@らっしー-m4m]

A month ago, coffee price at the store where I work was raised. So the affection is reaching at comsumers.

[@zeefunk9620]

Great video! So my friends dad is letting him go to military active duty, however is not letting him buy a coffee maker, (mormon), he thinks that the cost of a cup of fresh ground coffee at home would be too expensive, and too much trouble for maintenance to have around. What do you guys think? I buy coffee from starbucks everyday so I dont really know what goes into making a home cup of coffee. Feedback appreciated.

[@mosesmessiah9098]

I don’t usually drink coffee and maybe do every a couple of years but I bought a cola coffee last night for today and before I head off to work with it I see this

[@ThatGuyNorin]

Is it any good that Cola Coffee? Research has taught me that it is comparable to a coffee flavored candy. I haven’t had one myself yet.

[@mosesmessiah9098]

@@ThatGuyNorin yeah I had the vanilla it tasted nice I might get another

[@TranquiloCamilo]

You grow arabica in mountains. So if temperature goes up then you grow them 200 mts higher

[@winterroll5255]

Ummm, Hey so can you say a 7% alpha increase in prices over the general level of inflation (not even the retail index or something more related to food) spread over 5 years ~1.4% per annum is something beyond the ordinary for a commodity with value chains as complex as Coffee. I would say most of it was led by a wave of premiumisation that started much before the past 5 years. Don't take this the wrong way, I loved the focus and the narrative of the whole story, but WSJ can do better intros than that!

[@yongkiatlee3450]

Supply chain , climate change is affected all commodities, not just coffee

[@naifalharbe4123]

Justice for the case of Jamal Khashoggi and the Yemen war crimes

[@karliebellatrixyoung6359]

I expect the Journal to be able to use "myriad" correctly. I guess the NYU communications program doesn't cover usage and grammar.

[@YourBoyDany]

What's wrong with it?

[@drewh3224]

I heard this narrative over my life span, Im still drinking coffee! 😀

[@faridjafari6356]

my friend's uncle is a strong smoker and 2 famous doctors told him that he will die in 2 years but 20 years has passed and my friend's uncle is still smoking and those 2 doctors have died! :))

[@TheSamLegacy]

@@faridjafari6356 this is known as survivorship bias. Regardless, I'm glad you're family is still around and kicking. Be safe and be well.

[@Chironex_Fleckeri]

@@faridjafari6356 This makes me want to keep smoking. Ive got a pack of Marlboro Southern Cuts. Delicious cigs

[@faridjafari6356]

@@Chironex_Fleckeri I really do not recommend that my good friend!

[@sungk3962]

Coffee bean prices have been depressed for years (i.e., you could get 1lb of green coffee beans for $1) where you saw coffee farmers just walking away from their farms, yet a cup of coffee price have not decreased. Why are they expected to increase price of a cup of coffee when coffee bean price increases. Please explain to me how the market work?

[@alvarortega2]

$4.50 for a coffee? Everyone in europe, let's laugh together now... This jump is simply based on the US consumer happy to pay more for a fashionable cup of coffee.

[@shaduck06]

$4.50 for 40oz Peets coffee [of day + refill]

[@backonline]

Yes, $4.5 its funny

[@shaduck06]

​@@backonline $4.50 for 40oz +milk. in SanFrancisco that's cheap,since there are so many more costlier brews that don't taste like Italian excellence! In GreaterChina more expensive & no milk!

[@albifathurahman7057]

Guys, in Bandung West Java.. no Chery Coffee is 17.000 rupiah.. per kilo

[@FinancialShinanigan]

Screw coffee, I'm sad chocolate prices are going up!

[@badhrihari1705]

*F*

[@davidllewis4075]

While watching this it suddenly occurred to me I had a cup of coffee in my hand.

[@johnwick860]

Philippines also produces lots of coffee and it tastes great too

[@MartyD]

depends on what you get

[@jonathanpereira6618]

My question now is: Should I invest my money into coffee market?

[@arunkottolli]

Biggest factor is corporate greed. The price of real coffee beans on the farm has not changed much..

[@cometome8194]

This video is so well made.

[@franco521]

Same reason everything else is getting more expensive. Hint: No, it's not sudden spike in demand that clobbered supply chains. Answer: It's money printing and inflation.

[@leoszilard7542]

literally not a single reason mentioned in the video had to do with demand for beans...

[@tracephoto1823]

I drink Roma. 3 pack off Amazon, instant, no caffeine substitute. Little water, cream and creamer, fan-fricken-tastic. Gifted some to a friend who is a HUGE caffe drinker. He was duly impressed and loved it. Cheap, simple, delicious. Problem solved.

[@faridjafari6356]

The increase of coffee price can make it feasible and economic for countries which were coffee importers to grow and make their own coffee.

[@mnl1986]

but how much?

[@willychua1136]

$4.5? How much % is milk, packaging? Intangibles? So why is that real % against inflation?

[@deannaspencer8988]

Lower The Prices of Coffee,Tea,Milk Now ,That's too much $$500,000%

[@TheZoeBig]

0:15 Oh no, not $0.9! 😱

[@AntonioCostaRealEstate]

Oh, and by the way... this is from the horse’s mouth. A clerk at a Dunkin Donuts store ( middle aged woman , very businesslike, worked the graveyard shift ) , once confided me the gross margins in each cup of coffee sold ( not counting overhead , franchise fees ) , was about 1000%. That is your plain Joe. No Coolattas , no fancy iced coffee, no Frappuccino. Meanwhile, the gross margin on pastries , same store , 30%. They baked pastries because they brought in store traffic and customers wanted them anyway. So call it a loss leader. Só, commodities go up, so D&D suppliers or the franchisor itself will be hedging hugely on coffee futures. Time to play the slots on the Chicago board.

[@suddhojitgon5929]

Coffee price has gone up in India as well. We in India mostly grow our coffee in the Indian state of Karnataka.

[@tospipdevelopment9793]

I thought you drink tea in India?

[@suddhojitgon5929]

@@tospipdevelopment9793 Tea is the dominant beverage across East, NorthEast, North and West India but coffee rules in south India as it is cultivated there. But there are a lot of people all over India who drink coffee.

[@lizpaperdeco]

me who doesn’t drink coffee: *interesting....*

[@timothydevries383]

Unlikely, generally there is a global oversupply of coffee.. However, there is always a shortage of the quality stuff.

[@theroebuck123456789]

I'm glad my country produces coffee

[@avengerpat]

Because im the one drinking it all

[@MinhPham-vg6bw]

My coffee ritual isn't going up. I fuel up at love's truck stop and refills are free for platinum members. Let it go up as high as it wants

[@jaysolomon4426]

Take a look at "Atomo: Coffee made without coffee beans". This company can play a huge part in this current coffee issue.

[@lepro470]

Meanwhile me, an Italian, complaining when a café sells espresso at €1.10 instead of €1

[@pushslice]

I hope that your fellow Italians understand that while keeping the coffee at one euro, your providers are forced to lower the quality of the coffee... slowly but surely...

[@ggio9]

0,70 € in lisboa

[@The_Revolutionist]

@@pushslice No, you're wrong. Price has nothing to do with quality.

[@stefano3202]

@@The_Revolutionist higher price should mean higher quality as long as theres no artificial inflation of prices for the sake of the brand, like Rolex

[@pushslice]

@@The_Revolutionist then please explain further. I keenly note you said 'nothing'...not 'not everything', nor some other mitigation wording. i'm in the coffee business, so i'd like to understand where my own observations may be incomplete. I don't work in Italy, granted, but i do know about the relative wholesale prices & trends of various grades of coffees that F&B businesses have access to.

[@thenxtbillionaire]

Graham is going to jump in here, sipping his 10 cents coffee 🤣🤣

[@ronopatrick7104]

Farmers in Kenyas relatively cold weather uprooted coffee trees because of poor prices

[@Likeacannon]

Ask the average coffee farmer who makes pennies on the dollar for their backbreaking work if coffee is “too expensive” and wait for their reaction.

[@vlado2701]

Frankly , I worry... For me , one day without coffee is like a wedding night without a bride ✓ I immensely grateful dear WSJ for Your helpful information ! Have a nice , cozy , prosperous and happy weekend for everyone !

[@creatineenjoyer7345]

Woah Vlado, that is a lot of positivity. Are you from Balkan?

[@vlado2701]

@@creatineenjoyer7345 Exactly. Montenegro. About Hunt for Money : I don't like money , but I respect the way of decent independence in it ✓ I wish You remarkable weekend : so go ahead and get comfy ! Cheer up and keep smiling dear Friend !

[@creatineenjoyer7345]

@@vlado2701 woah bro, i need some of that energy. Is that because of coffee or because of something else? Do you support Krsto Zrnov?

[@vlado2701]

@@creatineenjoyer7345 Legendary General , Knight and Hero ! We remember ! Three in One !

[@packmanstart]

WSJ, $4.50 for a cup?! Where do you get such high prices? $3 a cup is max at almost any regular place.

[@Mas3452001]

Your first mistake is being reliant on coffee to function & likely consuming garbage calories via the milk & sugar added. Your second mistake is making this addiction such a large part of your budget with buying it. You could easily invest in an over the stove expresso maker & buy expresso in bulk to save thousands.

[@sonsangsom]

Very little of that price increase makes it way to the farmers

[@nathanseago]

I like coffee. I click video about coffee.

[@yondaime0user]

Nothing more expected from WSJ.

[@270Winchester]

The only thing that I like at cafes is dunkin donuts vanilla chai. Other than that community coffee is the best in my opinion.

[@wilf7042]

I'm more worried about the price of timber

[@borzycrn]

The price of green beans have very little to do with the price of your $4.50 latte. That price is high due to local factors, wages, marketing mostly. The green beans are between 1-2$ per pound. Let than 10% of the latte price. Even if they double it's maybe 20 cents.

[@whoami724y]

depends on the quality of beans. specialty coffee green beans could cost $4-6 per pound (500gr) and $10-20 (1kg). but that is in my country's market average price

[@changnomis]

How to robust yet delicate

[@risajeanlozaga1417]

I gotta plant more coffee trees😂

[@bluegas]

The reason why coffee costs 4,50$ in USA is because employees are very well paid with nice healthcare benefits, companies pays all taxes and don’t dodge money in unusual tax loopholes. .... NOT! 😫😫😂😂😂😫😫

[@satria2211]

i believe we're in Indonesia still have plenty of good quality arabicca coffee from our farmer. we can get a cup for 1$

[@Didgadidg]

Coffee is a luxury product underated since too long and it should not be part of basic products as flower or milk. The price of coffee from the producers is way to low considering the very hard working conditions. Can you imagine 2 pounds of coffee beans from the producers will cost you around 2 dollars. A cup of coffee contains around 0.35 oz. It is sold from 2 to 5 dollars in cafés. Can you make the count? 0.35 = 5 dollars. 35 oz=500 dollars!!! This is how much your coffee costs: 500 dollars for 2 pounds... bought 2 dollars. I think that some effort could be made from the traders. Prices in this comment could not be the exact amount but it gives an idea.

[@commonsense31]

Brazil it’s about time you build high tech growing houses. Where you can control everything with the crops!

[@kylorokx1552]

Coffees getting expensive Business man: i getting rich

[@windskm]

Not necessarily because they don't have the same amount to sell

[@antongavutti4376]

Excess Kills Scarcity is Wisdow

[@reignofthedragon]

Those prices are different if you MAKE YOUR OWN

[@sridev2236]

Then why r framers getting paid same for 10 years

[@Aschraffff]

Soo... buy coffee futures?

[@Bekssss]

$1 in MacDonalds

[@MA-un1mj]

Whole Bag of coffee $6 here.

[@gidd]

*Me laughing in East African *

[@sgamer1770]

why not grow more robusta coffee then?

[@captiongeeza]

'Shipping containers' give me a break ! Sheesh !

[@user-ix7iu4wf8o]

i dont buy coffee (except maybe during emergencies) I brew my own and I also do not simply visit expensive cafe for instawhores ... I go where my tastebuds tells me it's the best so it could be anywhere from a stall beside a dirty drain or an upclass hotel, most of the time I just make my own.

[@aydenhenry9920]

He has really made a good name for himself

[@importantname]

all food stuffs are getting more expensive

[@andrechristian3657]

that' s why i just drinking water

[@andrechristian3657]

@@KenanGrace-ny5pv ok

[@CraszyDayne]

This one quick tip can save you hundreds! Brew your own coffee Thank you for coming to my Ted talk

[@Squintis]

Who is paying 4.50 for coffee? No one. Americas problem is they try to make it seem like we all overpaying for everything. Instead of people just saying “that’s too expensive I won’t buy that anymore” If no one buys, they have to drop the price. 4 dollars for coffee....

[@prasadkadu9737]

I prefer Tea costing 0.5$

[@bloodaxe5028]

Make your own coffee guys. Coffee machines were invented for a reason

[@alparslankorkmaz2964]

Nice video.

[@bobbrown8661]

Better stock up on that robusta!

[@jcluvsmeandyou8524]

WSJ supports poor government policies that lead to more expensive prices then writes about increasing prices and sites irrelevant factors, like shipping container shortage as a factor in increased prices.

[@VictorF0326]

Coffee expensive? You have NOT been to Japan.

[@Chironex_Fleckeri]

I just take caffeine pills because I'm not a nonce