Now Even Coffee Feels Too Expensive, So We Make 'Mix' in the Office Pantry... But Why Is This Going Up Too? [Week+Money+Talk]

Coffee Prices Up 7.8% in a Year
High Exchange Rates and Decreased Bean Production Drive Increases
Coffee Mix Prices Also Rise 16.5%

Editor's NoteWe are living in a time when a single serving of pork belly costs 20,000 won and a bowl of jajangmyeon is 7,500 won. The consumer price index in 2024 is 114.18 (2020=100), and due to the continued impact of high inflation, consumers are feeling an even greater burden on their grocery bills in 2025. Through the "Week+Money+Talk" series, we aim to share stories about consumption that directly affect our wallets, in step with the ever-changing prices.

With the average annual coffee consumption per person in Korea exceeding 400 cups, consumers are feeling an increasing burden due to rising coffee prices. Not only have coffee franchise prices gone up, but even coffee mix prices have been raised one after another, further increasing household expenses. This trend appears to be the result of both a high exchange rate and climate risks in major coffee-producing countries.

Even a Morning Coffee on the Way to Work Feels Burdensome... Franchises Also Raise Prices

A franchise coffee shop in Seoul. Photo by Hyunmin Kim

According to the National Statistical Portal (KOSIS) of the National Data Office, last month the coffee consumer price index stood at 143.98 (2020=100), a 7.8% increase compared to the same month last year. This index includes instant coffee, canned coffee, and even convenience store pouch coffee. The upward trend in coffee prices is also evident in the food service sector. During the same period, the consumer price index for coffee (food service) was 111.43, up 4.3% year-on-year.

Amidst this trend, coffee franchise companies are also raising their prices one after another. Since the 5th of this month, The Coffee Bean has increased its drip coffee price by 300 won, and the price for switching to decaffeinated beans has risen by 200 won, from 300 won to 500 won. The Coffee Bean announced on its website, "Due to the continued rise in coffee bean prices, we have inevitably adjusted the prices of some menu items within the minimum necessary range." Banapresso also raised the price of its iced Americano takeout from 1,800 won to 2,000 won.

The main reasons cited for the ongoing coffee price hikes are the high exchange rate and climate risks in major coffee-producing countries. In Vietnam and Brazil, which are key coffee producers, abnormal weather events such as droughts and heavy rains continued last year, reducing coffee bean output. In addition, since the domestic market relies entirely on imports for coffee beans, the impact of the rising exchange rate is also reflected in prices.

Supply instability due to production disruptions is also evident in international coffee bean prices. According to food industry statistics from the Korea Agro-Fisheries & Food Trade Corporation (aT), last month the international price of Arabica coffee beans was $8,295.90 per ton, about a 12% increase compared to June last year ($7,405.47). If this price trend continues, it is expected that the cost burden for cafes will likely persist for some time.

"Efforts Needed to Minimize the Impact of Price Increases"

A coffee sales counter at a large supermarket in Seoul. Photo by Dongju Yoon

As the burden of coffee prices grows, more consumers are turning to relatively inexpensive coffee mixes. With the daily cost of caf? coffee becoming a financial strain, people are increasingly opting to enjoy coffee at home or in the office at a lower price.

However, coffee mixes are not immune to price increases either. According to the Price Monitoring Center of the Korea Consumer Organizations Council, which monitored the prices of 82 products across 39 daily necessities at 420 retailers in Seoul and Gyeonggi Province in the fourth quarter of last year, the average price of coffee mix (based on a pack of 180) rose from 27,683 won in the fourth quarter of 2023 to 32,262 won in the fourth quarter of last year, a 16.5% increase. By quarter, the price increases were ▲7.9% in Q1 ▲12.0% in Q2 ▲18.7% in Q3 ▲16.5% in Q4, marking double-digit growth for three consecutive quarters.

By product, Namyang Dairy Products' "French Caf? Coffee Mix" saw the largest increase at 18.9%, while Dongseo Food's "Maxim Mocha Gold Mix" also rose by 14.5%. This is attributed to the continued rise in the import price of coffee beans, the main ingredient in coffee mix, due to the higher exchange rate.

On social networking services (SNS), complaints about rising coffee mix prices are also increasing. Online users have commented, "I don't know why the price of coffee mix for the office pantry has gone up so much," "It might be better to stock up on energy drinks instead of coffee mix," "Now even coffee mix prices are rising," and "It takes longer to choose a product these days."

In response, the Council stated, "Once the price of daily necessities goes up, it is downwardly rigid and rarely decreases," adding, "It is necessary to continuously monitor the price trends of related items so that tariff reductions lead to actual price cuts." The Council further added, "While companies may face various cost increases such as surges in raw material prices due to abnormal weather, logistics costs, and exchange rate fluctuations, they must make active efforts to minimize the impact of price increases on essential food and daily necessities for consumers."