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 an era where 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 stands at 114.18 (2020=100), and in 2025, the burden on consumers' shopping baskets has continued to grow due to persistent high inflation. Through the "Week+Money+Talk" series, we aim to share stories of consumption that reflect our daily financial realities, alongside the ever-changing prices of goods.

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With the average annual coffee consumption per person in Korea exceeding 400 cups, the burden on consumers due to rising coffee prices is increasing. Not only have coffee franchise prices gone up, but prices for instant coffee mixes are also rising, further straining household budgets. This trend appears to be the result of both a strong exchange rate and the impact of climate risks in major coffee-producing countries.

Even a Morning Coffee on the Way to Work Feels Burdensome... Franchise Industry Also Raises Prices

A franchise coffee shop in Seoul. Photo by Hyunmin Kim

According to the National Statistical Portal (KOSIS), last month's coffee consumer price index was 143.98 (2020=100), a 7.8% increase compared to the same month last year. This index includes instant coffee, canned coffee, and even pouch coffee sold at convenience stores. The upward trend in coffee prices is also evident in the dining-out sector. During the same period, the coffee (dining out) consumer price index was 111.43, up 4.3% year-on-year.

Amid this trend, coffee franchise companies are also raising their prices one after another. Coffeebean increased the price of its drip coffee by 300 won starting on the 5th of this month, and the price for switching to decaffeinated beans rose by 200 won, from 300 won to 500 won. Coffeebean announced on its website, "Due to the continued rise in coffee bean prices, we have inevitably adjusted the prices of some menu items to the minimum extent necessary." Banapresso also raised the price of its iced Americano take-out from 1,800 won to 2,000 won.

The reasons cited for the ongoing coffee price hikes are the strong exchange rate and climate risks in major coffee-producing countries. In Vietnam and Brazil, both major coffee-growing regions, abnormal weather events such as droughts and heavy rains continued last year, leading to reduced coffee bean production. Furthermore, since the domestic market relies entirely on imports for coffee beans, the rising exchange rate is also being 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 12% higher than in June of last year ($7,405.47). If this price trend continues, it is expected that the cost burden for cafes will likely persist for the time being.

"Efforts Needed to Minimize the Impact of Price Increases"

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

As the burden of coffee prices grows, more consumers are turning to relatively inexpensive instant coffee mixes. With the daily cost of caf? coffee becoming a financial strain, there is a growing trend of people opting to enjoy coffee more affordably at home or in the office.

However, instant coffee mixes are not immune to price increases. According to price monitoring by the Korea Consumer Agency's Price Monitoring Center, which surveyed 420 retailers in Seoul and Gyeonggi Province on 39 essential items and 82 products in the fourth quarter of last year, the average price of coffee mixes (calculated per 180 servings) rose by 16.5%, from 27,683 won in the fourth quarter of 2023 to 32,262 won in the fourth quarter of last year. By quarter, the price increases were as follows: ▲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 Cafe Coffee Mix" saw the highest increase at 18.9%, while Dong Suh Foods' "Maxim Mocha Gold Mix" rose by 14.5%. This is attributed to the continued rise in the import price of coffee beans, the main ingredient in coffee mixes, due to the strong exchange rate.

On social media, complaints about rising coffee mix prices are also increasing. Netizens commented, "I don't understand why the price of coffee mixes for the office pantry has gone up so much," "It might be better to stock up on energy drinks instead of coffee mixes," "Even coffee mix prices are rising these days," and "It takes longer to choose a product now."

In response, the association stated, "Once the price of daily necessities goes up, it is difficult for it to come down due to downward rigidity," and added, "It is necessary to continuously monitor the price trends of related items to ensure that tariff reductions lead to actual price decreases." The association further commented, "Although there are various cost factors for companies, such as surging raw material prices due to abnormal weather, logistics costs, and exchange rates, companies should make active efforts to minimize the impact of price increases, at least for essential foods and daily necessities for consumers."