Even Coffee Made by Yourself Is Getting More Expensive
Rising Import Costs Due to Extreme Weather and Exchange Rate Increases
Ahead of the peak summer season when demand for "A-A" (iced Americano) surges, the coffee industry has announced a series of price increases. Not only have major franchises raised prices, but budget franchises, capsule coffee, and instant coffee have also seen hikes, directly impacting home cafes as well.
According to the retail industry on May 24, Angel-in-us, the coffee brand of Lotte GRS, will increase coffee prices by up to 300 won starting May 29. Tous Les Jours, operated by CJ Foodville, also plans to raise the recommended retail prices of 32 coffee products, including Americano, by 100 to 500 won starting May 30.
Previously, major franchises such as Starbucks, Hollys, Twosome Place, Paul Bassett, and Pascucci had already increased their prices.
Budget brands are no exception. Mega MGC Coffee raised its prices for the first time in 10 years since its launch, and Paikdabang has been selling Americano (hot) at 1,700 won, an increase of 200 won, since May 21. Cafe latte, both hot and iced, also saw a 200 won increase. In addition, Comfort Coffee and The Venti have also adjusted their prices.
Ahead of the peak summer season when the demand for iced Americano surges, the coffee industry has announced a series of price increases. Photo by Pixabay
Home cafes, which had been enjoyed for their cost-effectiveness as an alternative to "Namta Coffee" (coffee made by someone else) with soaring prices, have not been spared from the recent price hikes. Dong Suh Foods will raise the shipment prices of coffee products such as Maxim and Kanu by an average of 7.7% starting May 30. This is an additional increase just six months after the last hike at the end of last year.
Quro Holdings, the official Korean partner of Illycafe, raised the prices of 27 types of capsule coffee sold at major supermarkets by an average of 12% on May 2. The price of one of its flagship products, Illy Capsule Coffee Costa Rica (18-pack), increased by 2,000 won (12.1%) from 16,480 won to 18,480 won. This comes just four months after the previous price increase for major products on December 31, 2024.
The coffee industry cites several reasons for these price increases: higher import prices for coffee beans, rising exchange rates, and supply disruptions caused by abnormal weather conditions.
Due to abnormal weather in major coffee-producing countries such as Brazil and Vietnam, crop yields have been poor, leading to a sharp rise in coffee bean prices. The increase in the won-dollar exchange rate has also contributed to higher import coffee prices. Given that the domestic coffee industry relies heavily on imported beans, the burden of exchange rates from dollar payments has been directly reflected in retail prices.
As a result, global coffee trading company Volcafe recently revised its forecast for Brazil's 2025-2026 Arabica coffee production downward to 34 million bags, about 11 million bags less than its previous estimate. Global coffee production is expected to fall short of demand by about 8.5 million bags, suggesting that price instability will likely continue for some time.
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