Coffee prices have soared to a 13-year high, thanks in part to rising demand for the world’s smelliest fruit.
International supplies of coffee have been battered by supply disruption, extreme weather and a massive increase in demand for the exotic fruit durian in China.
Known for its strong odour which has been compared to raw sewage, durian is so pungent it is banned on public transport in many countries across Asia.
However, it has simultaneously attracted a growing cult of fans who have dubbed it the “king of fruit” for its distinctive taste.
It has proved increasingly popular in China, leading Vietnamese farmers to switch robusta coffee crops out for durian because it is more profitable.
This has been compounded by drought, heat and pests in Vietnam which have stunted the growth of the country’s coffee crops. Vietnam is the world’s biggest supplier of robusta coffee, used across the world by many big brands.
At the same time, harsh weather has damaged crops in Brazil, the largest global exporter of arabica coffee, sending the price of that species skyrocketing too.
Other regions have increased their exports but it has not been enough to ease the pressure of demand. Both arabica and robusta beans have risen to near-record highs.
The sharp jump increases the likelihood that British coffee drinkers will end up paying more on the high street despite top-line inflation easing significantly since the highs of 2022 and 2023.
Rising coffee prices in the last few years – combined with other growing costs such as labour and energy – has already led to shoppers paying more on the high street.
The average price of a coffee in Pret a Manger, Caffe Nero and Costa in London has risen by 20p to 40p since the start of the year, according to food industry experts Allegra Strategies.
Pret called time on its hugely popular subscription service, replacing it with a new offer of half-price drinks for a reduced monthly fee of £10 this month.
While the average price of a latte on the high street falls between £3.50 and £4, shoppers can easily end up paying £5 or higher for drinks if they choose to add syrups or opt for iced or flavoured coffees.
Jeffrey Young, Allegra’s chief executive, warned that if the price of takeaway coffee continued to rise much higher than where it was, shoppers might cut back.
He said: “If you’re talking about a £4 medium latte … I think you’re starting to push the boundaries of what consumers can do every single day.
“And that means, potentially, there’s what I would call an inflection point where people go and start really deeply questioning their daily coffee.
“I think we’re at this point now where putting the price up is probably at that moment where the industry needs to pause and we need to reflect.”
Source Agencies
