Rising Prices of Coffee Beans Shift Australian Coffee Culture
With the average cost of a cup of coffee in Australia now exceeding $5, many consumers are re-evaluating their caffeine consumption, particularly opting for homemade coffee. However, as coffee bean prices soar, this once cost-effective alternative is becoming less affordable.
Currently, Arabica beans—the dominant coffee variety in Australia—are projected to rise from US$2.93 (A$4.50) per kilogram in 2018 to US$4.80 (A$7.47) per kilogram by 2026. Moreover, Robusta beans, often used for instant coffee, are expected to climb from US$1.87 (A$2.91) to US$3.90 (A$6.06 over the same period). These trends have been echoed by Finder’s head of consumer research, Graham Cooke, who noted that consumers are witnessing substantial price hikes at supermarkets.
According to the latest Consumer Price Index (CPI) data, coffee and tea prices have surged by approximately 20% since 2021, but individual coffee increases may be higher, suggesting that a bag of beans that cost around $40 in 2021 now costs roughly $50. For instance, Woolworths currently sells Campos Superior Coffee Beans for $65 per kilogram, up from $50 two years prior. Other brands, like Vittoria Espresso, are priced similarly, with Woolworths and Coles offering them for $56, although Coles has a promotion bringing the price to $39.
Numerous factors contribute to these rising prices, including climatic events, increased demand, and disruptions in the supply chain. Australian shoppers have expressed their frustration, with anecdotes highlighting that a bag of Vittoria Espresso beans has risen from $38 to $56 over the past year.
As the coffee sector faces this inflation, some consumers are exploring options beyond traditional supermarkets. Discount retailer Aldi has emerged as a popular alternative, with its Lazzio beans retailing for $14.99 to $16.99 per kilogram.
While home brewing is becoming pricier, it remains far less costly compared to café prices. A recent study by La Marzocco indicates the average café coffee costs $5.50, with flat whites priced from $6 to $7 and iced long blacks ranging from $6.50 to $8. The potential savings from home brewing are significant; Cooke states that a 1kg bag of quality beans costs around $35 to $50, yielding 40 to 50 espresso shots and reducing the cost per cup to as low as $1 or even $1.50 at most.
For avid coffee drinkers, switching from takeaway to home brewing can yield impressive savings—Finder’s analysis suggests up to $914 annually by switching to a machine like a Nespresso, with savings increasing to $1,105 for those preferring instant coffee.
The choice of coffee machine also influences long-term savings. Notably, sales for home coffee machines spiked by 85% in November and 30% in December of last year, with brands such as De’Longhi, Breville, and Nespresso experiencing considerable growth.
Coffee machines range widely in price from $79 to $4,599, with pod systems generally less expensive than manual or semi-automatic options. CHOICE suggests a quality espresso machine can last around eight years. Thus, a $1,200 machine equates to $150 annually, making the shift to home brewing more appealing.
In conclusion, despite the increasing costs associated with home coffee preparation, it still represents a more economical option than purchasing from cafés. From investing in a cost-effective coffee machine to exploring budget-friendly coffee options, Australians are finding ways to adapt to the new coffee economy.
