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Rising Coffee Prices Prompt Australians to Rethink Caffeine Habits
As coffee prices soar, with the average cup now exceeding $5, many Australians are reconsidering their reliance on cafe drinks and turning to at-home alternatives for their caffeine fix. What was once a perceived cost-saving measure is now becoming more expensive due to fluctuating coffee bean prices.
Price Surge of Coffee Beans
Arabica coffee, the predominant variety sold in Australia, has seen its price jump from approximately AU$4.50 per kilogram in 2018 to a projected AU$7.47 in 2026. Meanwhile, Robusta, often used for instant coffee, is expected to rise from AU$2.91 to AU$6.06 per kilogram in the same timeframe. According to Finder’s Graham Cooke, the average price of coffee beans has increased significantly, with some supermarket items reflecting a 20% uptick since 2021.
For instance, Woolworths now lists Campos Superior Coffee Beans at AU$65 per kilogram, a notable increase from AU$50 just two years prior. The supermarket chain’s various offerings, including Vittoria Espresso Coffee Beans, have also risen considerably—from AU$39 on special at Coles to AU$56 at full price.
Understanding the Price Hike
Several factors contribute to rising bean prices, including adverse weather conditions, increased global demand, and disruptions in supply chains. Many consumers have taken to social media to express their frustrations. One Woolworths customer remarked that their usual brand had escalated from AU$38 to now AU$56 for one kilogram.
In light of escalating prices, some customers have turned to discount retailers like Aldi, where coffee beans are currently priced between AU$14.99 and AU$16.99 per kilo. Others are exploring local coffee shops and roasters as alternatives to big chains, hoping to find better value.
The Economics of Brewing at Home
Despite the increasing costs of home brewing, making coffee at home still proves to be significantly cheaper than purchasing from cafes. A report by La Marzocco highlights that a café coffee averages around AU$5.50, while traditional Italian coffees, such as flat whites, are priced between AU$6 and AU$7. Cooke emphasises that brewing at home can reduce costs substantially; a single kilogram of good quality beans can yield up to 50 espresso shots, costing as little as AU$1 per cup.
Finder’s earlier analysis revealed that Australians could potentially save up to AU$914 annually by opting for home-brewed coffee with a Nespresso machine, or up to AU$1,105 by choosing instant coffee.
Investment in Coffee Machines
The rise in coffee prices has spurred an increase in sales of home coffee machines—an 85% jump month-on-month reported by platform Shippit. Brands like De’Longhi and Nespresso have experienced notable growth, as consumers seek ways to mitigate the cost of buying coffee out.
Prices for coffee machines vary greatly, from AU$79 to AU$4,599. However, investing in a durable machine often pays off over time, with better quality manual or semi-automatic espresso models lasting eight years or more. For example, a higher-end machine costing AU$1,200 would average AU$150 in annual costs.
Conclusion
As coffee prices continue to rise, both consumers and businesses in Australia are adapting. While brewing at home may seem costlier than before, it remains far cheaper than purchasing coffee from cafés. With a myriad of options available both at supermarkets and local roasters, Australians are encouraged to explore cost-effective methods for enjoying their favourite beverage without breaking the bank.
In a world where economic pressures are mounting, making informed choices about our caffeine needs is more crucial than ever.
